0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV

*RYHUQPHQW RI WKH 3HRSOH

V 5HSXEOLF RI %DQJODGHVK

%$1*/$'(6+
&/,0$7( &+$1*(
675$7(*<
$1'
$&7,21 3/$1


6HSWHPEHU
3XEOLVKHG E\
0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV
*RYHUQPHQW RI WKH 3HRSOH
V 5HSXEOLF RI %DQJODGHVK

3XEOLVKHG LQ
6HSWHPEHU
'KDND %DQJODGHVK

&LWDWLRQ
0R()  %DQJODGHVK &OLPDWH &KDQJH 6WUDWHJ\ DQG $FWLRQ 3ODQ  0LQLVWU\ RI
(QYLURQPHQW DQG )RUHVWV *RYHUQPHQW RI WKH 3HRSOH
V 5HSXEOLF RI %DQJODGHVK
'KDND %DQJODGHVK [YLLL SS

,6%1


'HVLJQ
,17(17ZZZLQWHQWGHVLJQQHW
 7$%/( 2) &217(176

$EEUHYLDWLRQV DQG DFURQ\PV Y

*ORVVDU\ YLL
$FNQRZOHGJHPHQWV L[
0HVVDJH [L
)RUHZRUG [LLL
3UHIDFH [Y
6XPPDU\ [YLL

, ,1752'8&7,21 
&RQWH[W 
3XWWLQJ WKH %DOL 5RDGPDS LQWR DFWLRQ 
9LVLRQ 6WUDWHJ\ DQG $FWLRQ 3ODQ 

,, &/,0$7( +$=$5'6 ,1 %$1*/$'(6+ 

%DFNJURXQG 
)ORRGV 
7URSLFDO F\FORQHV DQG VWRUP VXUJHV 
'URXJKWV 

,,, ,03$&76 2) &/,0$7( &+$1*( 

,9 $'$37,1* 72 &/,0$7( &+$1*( 
9 0,7,*$7,21 
9, 72:$5'6 $ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1 
7KH &OLPDWH &KDQJH $FWLRQ 3ODQ 
3URJUDPPHV DQG 6XESURJUDPPHV 
,PSOHPHQWLQJ WKH $FWLRQ 3ODQ 
)LQDQFLQJ WKH $FWLRQ 3ODQ 
7HFKQRORJ\7UDQVIHU 

$11(;  &/,0$7( &+$1*( $&7,21 3/$1 352*5$00(6 

 Y

$%%5(9,$7,216 $1' $&521<06

$QQH[  3DUWLHV ,QGXVWULDOLVHG FRXQWULHV LGHQWLILHG LQ 81)&&& DV UHVSRQVLEOH IRU PLWLJDWLRQ
$:*/&$ $G +RF :RUNLQJ *URXS RQ /RQJWHUP &RRSHUDWLYH $FWLRQ XQGHU 81)&&&
%$5, %DQJODGHVK $JULFXOWXUDO 5HVHDUFK ,QVWLWXWH
%'5&6 %DQJODGHVK 5HG &UHVFHQW 6RFLHW\
%&$6  %DQJODGHVK&HQWUHIRU$GYDQFHG6WXGLHV
%&&6$3 %DQJODGHVK &OLPDWH &KDQJH 6WUDWHJ\ DQG $FWLRQ 3ODQ
%,'6 %DQJODGHVK ,QVWLWXWH RI 'HYHORSPHQW 6WXGLHV
%5$& %XLOGLQJ 5HVRXUFHV $FURVV &RPPXQLW\
%55, %DQJODGHVK 5LFH 5HVHDUFK ,QVWLWXWH
%83  %DQJODGHVK8QQD\DQ3DULVKDG
%8(7 %DQJODGHVK 8QLYHUVLW\ RI (QJLQHHULQJ DQG 7HFKQRORJ\
&%2 &RPPXQLW\ %DVHG 2UJDQLVDWLRQ
&'$ &KLWWDJRQJ'HYHORSPHQW$XWKRULW\
&'0 &OHDQ 'HYHORSPHQW 0HFKDQLVP
&'03 &RPSUHKHQVLYH 'LVDVWHU 0DQDJHPHQW 3URJUDPPH
&(*,6 &HQWUH IRU (QYLURQPHQWDO DQG *HRJUDSKLF ,QIRUPDWLRQ 6HUYLFHV
&)/V  &RPSDFW)ORUHVFHQW/DPSV
&156 &HQWHU IRU 1DWXUDO 5HVRXUFHV 6WXGLHV
&23 &RQIHUHQFH RI 3DUWLHV RI 81)&&&
&33 &\FORQH 3UHSDUHGQHVV 3URJUDPPH
&65 &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\
'&&  'KDND&LW\&RUSRUDWLRQ
'(0 'LJLWDO (OHYDWLRQ 0RGHO
'0% 'LVDVWHU 0DQDJHPHQW %XUHDX
'R( 'HSDUWPHQW RI (QYLURQPHQW
'R) 'HSDUWPHQW RI )RUHVWV
'3+( 'HSDUWPHQW RI 3XEOLF +HDOWK (QJLQHHULQJ
)(-% )RUXP RI (QYLURQPHQWDO -RXUQDOLVWV RI %DQJODGHVK
)):& )ORRG )RUHFDVWLQJ DQG :DUQLQJ &HQWUH
*%0 *DQJHV%UDKPDSXWUD0HJKQD
*&0 *HQHUDO &LUFXODWLRQ 0RGHO
*'3 *URVV 'RPHVWLF 3URGXFW
*+* *UHHQKRXVH JDV
*,6 *HRJUDSKLF ,QIRUPDWLRQ 6\VWHP
,&''5% ,QWHUQDWLRQDO &HQWUH IRU 'LDUUKRHDO 'LVHDVH 5HVHDUFK %DQJODGHVK
,3&& ,QWHUJRYHUQPHQWDO 3DQHO RQ &OLPDWH &KDQJH
 YL

,35  ,QWHOOHFWXDO3URSHUW\5LJKWV
,8&1 ,QWHUQDWLRQDO 8QLRQ IRU &RQVHUYDWLRQ RI 1DWXUH
,:)0 ,QVWLWXWH RI :DWHU DQG )ORRG 0DQDJHPHQW
,:0 ,QVWLWXWH RI :DWHU 0RGHOOLQJ
.'$  .KXOQD'HYHORSPHQW$XWKRULW\
/'&  /HDVW'HYHORSHG&RXQWU\
/*('  /RFDO*RYHUQPHQW(QJLQHHULQJ'HSDUWPHQW
/8&)  /DQGXVHFKDQJHDQGIRUHVWU\
/8/8&) /DQGXVHODQGXVHFKDQJHDQGIRUHVWU\
0'*V  0LOOHQQLXP'HYHORSPHQW*RDOV
0R()  0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV
0R)'0  0LQLVWU\RI)RRGDQG'LVDVWHU0DQDJHPHQW
0:&$  0LQLVWU\RI:RPHQDQG&KLOGUHQ$IIDLUV
1$0$V  1DWLRQDOO\$SSURSULDWH0LWLJDWLRQ$FWLRQV
1$3$  1DWLRQDO$GDSWDWLRQ3URJUDPPHRI$FWLRQ
1$56  1DWLRQDO$JULFXOWXUDO5HVHDUFK6\VWHP
1'0&  1DWLRQDO'LVDVWHU0DQDJHPHQW&RXQFLO
1*2  1RQ*RYHUQPHQWDO2UJDQL]DWLRQ
2 0  2SHUDWLRQDQG0DLQWHQDQFH
SSP  3DUWVSHUPLOOLRQ
3563  3RYHUW\5HGXFWLRQ6WUDWHJ\3DSHU
5$-8.  5DMGKDQL8QQD\DQ.DUWLSDNNKD
5'$  5DMVKDKL'HYHORSPHQW$XWKRULW\
5(''  5HGXFLQJ(PLVVLRQVIURP'HIRUHVWDWLRQDQG)RUHVW'HJUDGDWLRQ
5(+$%  5HDO(VWDWHDQG+RXVLQJ$VVRFLDWLRQVRI%DQJODGHVK
55,  5LYHU5HVHDUFK,QVWLWXWH
6$$5&  6RXWK$VLDQ$VVRFLDWLRQIRU5HJLRQDO&RRSHUDWLRQ
6/5  6HDOHYHOULVH
63$5562 6SDFH5HVHDUFKDQG5HPRWH6HQVLQJ2UJDQL]DWLRQ
81'3  8QLWHG1DWLRQV'HYHORSPHQW3URJUDPPH
81)&&& 8QLWHG1DWLRQV)UDPHZRUN&RQYHQWLRQRQ&OLPDWH&KDQJH
:$6$  :DWHUDQG6HZHUDJH$XWKRULW\
:$532  :DWHU5HVRXUFHV3ODQQLQJ2UJDQL]DWLRQ

4ERMSANDABBREVIATIONSUSEDBY5.&###
 YLL

*/266$5<
$PDQ 5LFH FURS WUDQVSODQWHG LQ WKH PRQVRRQ DQG KDUYHVWHG LQ 1RYHPEHU'HFHPEHU
%RUR 5LFH FURS WUDQVSODQWHG LQ -DQXDU\)HEUXDU\ DQG KDUYHVWHG LQ 0D\
&KDU /RZO\LQJ ULYHU LVODQG
.LOOD 5DLVHG HDUWKHQ SODWIRUP XVHG DV D IORRG VKHOWHU IRU KXPDQV DQGRU DQLPDOV
0RQJD 8QHPSOR\PHQW OHDGLQJ WR VHDVRQDO KXQJHU
 L[

$&.12:/('*0(176
7KH%DQJODGHVK&OLPDWH&KDQJH6WUDWHJ\DQG$FWLRQ3ODQLVDQ
XSGDWHGDQGUHYLVHGYHUVLRQRIWKHRQHSUHSDUHGRULJLQDOO\LQZLWK
SURIHVVLRQDODGPLQLVWUDWLYHDQGORJLVWLFVLQSXWVIURPPDQ\SHRSOHZKLFK
LQFOXGHGILUVWDQGIRUHPRVWWKH0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV
UHSUHVHQWHGLQSDUWLFXODUE\0U0RKDPPDG4DPDU0XQLUDQG0U
5DELQGUDQDWK5R\&KRZGKXU\ERWK-RLQW6HFUHWDULHVRIWKH0R()'U0
$VDGX]]DPDQ5HVHDUFK'LUHFWRU%,'6'U$LQXQ1LVKDW&RXQWU\
5HSUHVHQWDWLYH,8&13URI5H]DXU5DKPDQ%8(70U4XDPUXO,VODP
&KRZGKXU\&KDLUPDQ)(-%'U5H]DXO.DULP(QYLURQPHQW6SHFLDOLVW
DQGRWKHUV

7KHSUHVHQWDQGXSGDWHGYHUVLRQSXEOLVKHGLQKDVEHHQSUHSDUHGE\
DGUDIWLQJUHYLVLRQFRPPLWWHHIRUPHGE\WKH0LQLVWUHULDO5HYLHZ
&RPPLWWHHKHDGHGE\$LU9LFH0DUVKDOO5$..KDQGNHU03DQG+RQ
0LQLVWHUIRU3ODQQLQJ7KH&RPPLWWHHLQFOXGHV'U0LKLU.0DMXPGHU
6HFUHWDU\0R()'U4.$KPDG&KDLUPDQ%83'U0$VDGX]]DPDQ
5HVHDUFK'LUHFWRU%,'6'U$LQXQ1LVKDW&RXQWU\5HSUHVHQWDWLYH
,8&1'U$WLT5DKPDQ([HFXWLYH'LUHFWRU%&$6DQG'U1DMLEXU
5DKPDQ'*'R(7KHGUDIWLQJFRPPLWWHHLVH[WUHPHO\JUDWHIXOWRWKH
0LQLVWHULDO5HYLHZ&RPPLWWHHIRUWKHJXLGDQFHDVZHOODVWKHFRQWLQXRXV
HQFRXUDJHPHQWE\'U+DVDQ0DKPXG03DQG+RQ6WDWH0LQLVWHUIRU
0LQLVWU\RI(QYLURQPHQWDQG)RUHVWVZKLFKHQDEOHGWKHGUDIWLQJ
FRPPLWWHHWRFRPSOHWHLWVMREH[SHGLWLRXVO\
 [L

0(66$*(
7KHQHZGHPRFUDWLF*RYHUQPHQWRI%DQJODGHVKLVLPEXHGZLWKWKHLGHDOVRI%DQJDEDQGKX6KHLNK0XMLEXU
5DKPDQ WKH )DWKHU RI WKH 1DWLRQ WR VHUYH WKH SHRSOH LQ DOO PDQQHUV SRVVLEOH ,W LV FRPPLWWHG WR
WUDQVIRUPWKHHFRQRP\VRFLHW\DQGSROLW\RI%DQJODGHVKEHILWWLQJDPRGHUQQDWLRQRIWKHVWFHQWXU\,W
ZLOOEHXQWLULQJLQLWVHIIRUWVWRRYHUFRPHDOOREVWDFOHVWRWKDWHQG&OLPDWHFKDQJHLVRQHVXFKPDMRUDQG
ORQJWHUPFRQVWUDLQWSHUPHDWLQJDOOVHFWRUVRIWKHHFRQRP\DGYHUVHO\DIIHFWLQJWKHZHOOEHLQJRIPHQDQG
ZRPHQ \RXQJ DQG ROG SHRSOH LQ WKH FRDVW DV ZHOO DV LQODQG LQ WKH KLOOV DQG LQ WKH SODLQV 7KH
*RYHUQPHQWRI%DQJODGHVKZLWKVXSSRUWIURPWKHZKROHSHRSOHDQGOHDGLQJWKHLUHIIRUWVZLOORYHUFRPH
WKLVLPSHGLPHQWWRSURJUHVVZLWKWKHVDPH]HDOFRXUDJHDQGVWHDGIDVWQHVVWKDWHDUQHGXVRXU/LEHUDWLRQ
LQDJDLQVWDOORGGV

%DQJODGHVK*RYHUQPHQWLVIXOO\FRPPLWWHGWRWDNHDOOPHDVXUHVVRWKDWFOLPDWHFKDQJHLVPDQDJHGLQD
ZD\WKDWWKHSHRSOHDUHIXOO\SURWHFWHGIURPLWVDGYHUVHLPSDFWVDVSURPLVHGLQRXUPDQLIHVWR7KHWDVNV
KRZHYHU DUH PDQ\ DQG FRPSOH[ 7KHVH GHSHQG RQ WKH VWDWH RI VFLHQFH DQG QDWLRQDO GHYHORSPHQW
SULRULWLHVDVZHOODVWKHVWDWXVRIFOLPDWHFKDQJHQHJRWLDWLRQVWKDWDUHH[SHFWHGWRFRPHWRDIUXLWIXO
FRQFOXVLRQDWOHDVWIRUWKHWLPHEHLQJLQ&RSHQKDJHQLQ'HFHPEHU

:HDVDQDWLRQDUHPRVWYXOQHUDEOHWRFOLPDWHFKDQJHDQGFRQVHTXHQWO\DGDSWDWLRQLVRXUSULRULW\$VZH
KDYHRQO\RQHZRUOGZHDUHKRZHYHUUHDG\WRFRQWULEXWHWRWKHJOREDOHIIRUWVIRUUHGXFWLRQRIJUHHQ
KRXVHJDVHVDVGHFLGHGLQ%DOLDW&23LQ%RWKDGDSWDWLRQDQGPLWLJDWLRQKRZHYHUZLOOQHHGYHU\
VXEVWDQWLDO IXQGV DQG WUDQVIHU RI WHFKQRORJ\ ZKLFK PXVW EH WKH ILUP SROLWLFDO FRPPLWPHQW RI WKH
GHYHORSHGZRUOGDQGDOVRWKRVHODUJHGHYHORSLQJFRXQWULHVZKRDUHLQDSRVLWLRQWRKHOSXVLQWKLVUHJDUG

$OOWKHVHLGHDVKDYHEHHQHODERUDWHGLQWKHUHYLVHG%DQJODGHVK&OLPDWH&KDQJH6WUDWHJ\DQG$FWLRQ3ODQ
:HEHOLHYHWKDWLIZHFDQLPSOHPHQWWKH$FWLRQ3ODQLQDQLQWHJUDWHGZD\DQGRWKHUFRXQWULHVMRLQ
LQVLPLODUHIIRUWVZHZLOOEHIUHHRIWKH´WHUURURIFOLPDWHµWREXLOG%DQJODGHVKLQWRDSURVSHURXVQDWLRQ
E\WKHOLIHWLPHRIRXUJUDQGFKLOGUHQ

-R\%DQJOD-R\%DQJDEDQGKX

6KHLNK+DVLQD
3ULPH0LQLVWHU
*RYHUQPHQWRIWKH3HRSOH·V5HSXEOLFRI%DQJODGHVK
 [LLL

)25(:25'
&OLPDWHFKDQJHLVQRORQJHUVRPHWKLQJWRKDSSHQLQWKHIXWXUHLWLVKHUHDQGQRZ%DQJODGHVKLVDPRQJ
WKHFRXQWULHVWKDWDUHH[SHFWHGWREHZRUVWDIIHFWHGE\FOLPDWHFKDQJH7KH*RYHUQPHQWRI%DQJODGHVK
LVYHU\PXFKDZDUHRIWKLV7KH*RYHUQPHQWUHDOL]HVDVDOVRFOHDUO\VWDWHGLQLWV(OHFWLRQ0DQLIHVWRWKDW
&OLPDWH&KDQJHLVDQHQYLURQPHQWDODVZHOODVDGHYHORSPHQWDOLVVXH7KH*RYHUQPHQWLVIXOO\FRPPLWWHG
WRPDQDJHFOLPDWHFKDQJHLQDZD\WKDWWKHFRXQWU\LVSURWHFWHGZHOOIURPLWVDGYHUVHLPSDFWDQGWKDW
WKHJURZWKSDWKUHPDLQVVWDEOHDQGPRYHVWRDKLJKHUSODQH

,Q  %DQJODGHVK GHYHORSHG WKH 1DWLRQDO $GDSWDWLRQ 3URJUDPPH RI $FWLRQ 1$3$ DIWHU H[WHQVLYH
FRQVXOWDWLRQV ZLWK FRPPXQLWLHV DFURVV WKH FRXQWU\ SURIHVVLRQDO JURXSV DQG RWKHU PHPEHUV RI FLYLO
VRFLHW\7KH*RYHUQPHQWKDVVLQFHSUHSDUHGDQGDGRSWHGLQWKH%DQJODGHVK&OLPDWH&KDQJH6WUDWHJ\
DQG$FWLRQ3ODQ%&&6$37KLVGRFXPHQWKDVEHHQSUHSDUHGDVDOLYLQJGRFXPHQWDQGLVH[SHFWHG
WR UHIOHFW DPRQJ RWKHUV WKH FKDQJHV LQ WKH GHYHORSPHQW SULRULWLHV RI WKH FRXQWU\ $IWHU WKH QHZ
GHPRFUDWLF*RYHUQPHQWFDPHLQWRSRZHUTXLWHQDWXUDOO\LWZLVKHGWRH[DPLQHLIWKHSUHPLVHVDQGWKH
DFWLRQVVXJJHVWHGLQWKH%&&6$3DUHFRQVLVWHQWZLWKLWVSULRULWLHVIRUIXWXUHHFRQRPLFVRFLDODQG
KXPDQGHYHORSPHQWLQWKHFRXQWU\7RWKLVHQGWKH*RYHUQPHQWIRUPHGD&DELQHW5HYLHZ&RPPLWWHH
XQGHUWKH&KDLUSHUVRQVKLSRIWKH+RQ·EOH0LQLVWHUIRU3ODQQLQJZLWKRWKHUPHPEHUVGUDZQIURPDPRQJ
WKHPLQLVWHUVDQGVHFUHWDULHVRIDOOUHOHYDQWPLQLVWULHV7KHSUHVHQWUHYLVHGYHUVLRQRIWKH%&&6$3
KDVIROORZHGWKHJXLGHOLQHVDQGLQFRUSRUDWHVWKHYLHZVDQGWKLQNLQJRIWKH&DELQHW5HYLHZ&RPPLWWHH
3DUWLFXODUO\ WKH 9LVLRQ  RI WKH GHPRFUDWLF JRYHUQPHQW LQFOXGLQJ LQWHU DOLD YHU\ VXEVWDQWLDO
HUDGLFDWLRQRISRYHUW\E\WKH\HDUQRZIHDWXUHVDVDPDMRUSROLF\SODQNLQWKH%&&6$3

7KHFOLPDWHFKDQJHLVDQXQIROGLQJSK\VLFDOSKHQRPHQRQZLWKYHU\GUDVWLFDQGDGYHUVHHQYLURQPHQWDO
HFRQRPLFVRFLDODQGKXPDQFRQVHTXHQFHVSDUWLFXODUO\IRU%DQJODGHVK$VWKHIXWXUHSDWKVRIPDQ\RI
WKHVHHYHQWVDUH\HWWREHXQGHUVWRRGSURSHUO\DQGUHPHGLDOPHDVXUHVDUHXQFHUWDLQRUFDUU\WKHLURZQ
ULVNV WKH %&&6$3 KDV WR UHIOHFW VXFK FKDQJHV LQ IXWXUH ,W ZLOO UHPDLQ D OLYLQJ GRFXPHQW DQG ZLOO EH
FKDQJHGGHSHQGLQJXSRQQHZVFLHQWLILFILQGLQJVGHYHORSPHQWSULRULWLHVRIWKHFRXQWU\DQGWKHSDFHDQG
QDWXUH RI LQWHUQDWLRQDO QHJRWLDWLRQV 3HULRGLF UHYLHZV RI WKH %&&6$3 DQG UHYLVLRQV PD\ WKHUHIRUH EH
QHFHVVDU\

&OLPDWHFKDQJHSHUPHDWHVDOOVHFWRUVDQGKXPDQHQGHDYRUV&OLPDWHFKDQJHPDQDJHPHQWWKHUHIRUHZLOO
EH D FRPSOH[ DQG KLJKO\ LQWHUDFWLYH UHVSRQVLELOLW\ IRU DOO VHFWRUDO PLQLVWULHV &RRUGLQDWLRQ DORQJ ZLWK
NHHSLQJWUDFNRIGHYHORSPHQWLPSHUDWLYHVZLOOEHWKHNH\IRUDVXFFHVVIXOLPSOHPHQWDWLRQRIWKH%&&6$3
:HKRSHWKDWWKHQDWLRQZLOODVKDVKDSSHQHGDOZD\VLQWKHSDVWWULXPSKRYHUWKHSUHVHQWDQG\HWWR
XQIROGDGYHUVDULDOVLWXDWLRQ

$LU9LFH0DUVKDOO5$..KDQGNHU03
0LQLVWHU0LQLVWU\RI3ODQQLQJ
&KDLUSHUVRQ&DELQHW5HYLHZ&RPPLWWHHRQ%&&6$3
 [Y

35()$&(
7KH0LQLVWU\RI(QYLURQPHQWDQG)RUHVWVLVPDQGDWHGDFFRUGLQJWRWKHSUHYDOHQW5XOHVRI%XVLQHVVRIWKH
*RYHUQPHQWWRORRNDIWHUDQGWDNHDFWLRQVUHJDUGLQJFOLPDWHFKDQJH7RWKLVHQGRYHUWLPHWKHUHKDG
EHHQ YDULRXV VWXGLHV DQDO\VHV SODQV IRU XUJHQW DFWLRQV IRU DGDSWDWLRQ DQG YLJRURXV SDUWLFLSDWLRQ E\
%DQJODGHVK LQ WKH LQWHUQDWLRQDO QHJRWLDWLRQV LQFOXGLQJ WKH VXEPLVVLRQ RI WKH ,QLWLDO 1DWLRQDO
&RPPXQLFDWLRQ WR WKH 81)&&& :KLOH XVHIXO WKH DFWLYLWLHV KDG EHHQ VRPHZKDW DG KRF ODFNHG
FRRUGLQDWLRQDQGUHPDLQHGUDWKHUSDUDOOHODQGRXWVLGHWKHQRUPDOGHYHORSPHQWSURFHVVDQGDFWLYLWLHVRI
WKH*RYHUQPHQW,Q&23LQ%DOLLQWKHPRPHQWRIUHFNRQLQJDUULYHGZKHQDOOFRXQWULHVRIWKH
ZRUOG GHFLGHG LQ D UDUH VKRZ RI JOREDO XQLW\ IRU ORZHULQJ HPLVVLRQ IRU SURWHFWLQJ DQG SUHVHUYLQJ WKH
FOLPDWH0XFKRI%DQJODGHVK·VDFWLYLWLHVUHODWHGWRFOLPDWHFKDQJHVLQFHWKHQKDYHIROORZHGDFRRUGLQDWHG
PRYHWRLPSOHPHQWWKH%DOL$FWLRQ3ODQ6XEVHTXHQWO\WKH*RYHUQPHQWKDVGHYHORSHGWKH%DQJODGHVK
&OLPDWH &KDQJH 6WUDWHJ\ DQG $FWLRQ 3ODQ %&&6$3  XQGHU WKH RYHUDOO VXSHUYLVLRQ RI D 6WHHULQJ
&RPPLWWHH FKDLUHG E\ WKH WKHQ 6SHFLDO $VVLVWDQW WR WKH WKHQ &KLHI $GYLVHU RI WKH *RYHUQPHQW 7KH
SUHVHQW %&&6$3  LV D UHYLVHG YHUVLRQ RI WKH %&&6$3  DQG UHIOHFWV WKH FKDQJHG GHYHORSPHQW
SULRULWLHVRIWKHQHZGHPRFUDWLF*RYHUQPHQW

$VEHIRUHWKH%&&6$3LVSUHVHQWHGLQWZRSDUWV7KHILUVWSDUWSURYLGHVWKHEDFNJURXQGLVVXHVEDVHG
RQ SK\VLFDO DQG FOLPDWLF FRQWH[WV FRUH VRFLRHFRQRPLF UHDOLWLHV DQG SROLFLHV LQ WKH FRXQWU\ DQG WKH
FRQVHTXHQWUDWLRQDOHIRUDVWUDWHJ\RQFOLPDWHFKDQJHEDVHGRQWKHYLVLRQIRUIXWXUHGHYHORSPHQWRIWKH
FRXQWU\ 7KH WKUXVW RI WKH VWUDWHJ\ LV RQ VXVWDLQDEOH GHYHORSPHQW SRYHUW\ HUDGLFDWLRQ DQG LQFUHDVHG
ZHOOEHLQJRIDOOYXOQHUDEOHJURXSVLQVRFLHW\ZLWKVSHFLDOHPSKDVLVRQJHQGHUVHQVLWLYLW\7KHVHFRQGSDUW
HODERUDWHV D VHW RI SURJUDPPHV EDVHG XSRQ VL[ SLOODUV RU EURDG DUHDV RI LQWHUYHQWLRQ QRW QHFHVVDULO\
PXWXDOO\H[FOXVLYHZKLFKKDYHEHHQLGHQWLILHGLQWKHILUVWSDUW

7KH%&&6$3DGGVVHYHUDOQHZDUHDVRIDFWLRQLQOLQHZLWKWKHSULRULWLHVRIWKH*RYHUQPHQW7KHVH
LQFOXGH DPRQJ RWKHUV GHYHORSLQJ DQG KDUQHVVLQJ WKH ZDWHU UHVRXUFHV WKURXJK EHWWHU ULYHU FRXUVH
PDQDJHPHQWDQGULYHUWUDLQLQJZKLFKDOVRKHOSVLQPLQLPL]LQJWKHGHVWUXFWLYHSRWHQWLDOVRIIXWXUHIORRGV
WKDWDUHH[SHFWHGWREHPRUHVHYHUHGXHWRFOLPDWHFKDQJHDQGPDQDJLQJORFDWLRQDODQGLQYROXQWDU\
GLVSODFHPHQWRISHRSOHDQGWKHLUOLYHOLKRRG:KLOHDGDSWDWLRQLVWKHPDMRUSULRULW\LVVXHLQUHODWLRQWR
FOLPDWH FKDQJH %DQJODGHVK KDV VKRZQ LWV FRPPLWPHQW DOVR WR D ORZ FDUERQ GHYHORSPHQW SDWK DV DQ
LPSRUWDQW HOHPHQW LQ LWV TXHVW IRU VXVWDLQDEOH GHYHORSPHQW :KHWKHU LW LV DGDSWDWLRQ RU PLWLJDWLRQ
GHYHORSPHQWRILQVWLWXWLRQDODQGKXPDQFDSDFLW\ZLWKLQWKHFRXQWU\LVDEVROXWHO\HVVHQWLDOIRUPDQDJLQJ
LQYHVWPHQWDVZHOODVLGHQWLI\LQJDUHDVIRULQWHUYHQWLRQWKURXJKUHVHDUFKDQGNQRZOHGJHPDQDJHPHQW

7KHLPSOHPHQWDWLRQRIWKH%&&6$3ZLOOEHILQDQFHGWKURXJK*RYHUQPHQW
VRZQUHVRXUFHVDQGH[WHUQDO
VXSSRUWWKDWPD\EHDYDLODEOHIURPWKHGHYHORSPHQWSDUWQHUVDVZHOODVWKHVSHFLILFLQWHUQDWLRQDOIXQGV
FUHDWHG IRU WKH SXUSRVH XQGHU WKH &RQYHQWLRQ $ PRQLWRULQJ PHFKDQLVP ZLOO EH VHW XS GXULQJ WKH
LPSOHPHQWDWLRQSURFHVVE\GHYHORSLQJDVHWRILQGLFDWRUVWRPHDVXUHSURJUHVV

,WKDQNDOOP\FROOHDJXHVLQWKH&DELQHWDQGWKH*RYHUQPHQWZKRKDYHWDNHQSDUWLQWKH&DELQHW5HYLHZ
&RPPLWWHH DQG JXLGHG WKH UHYLVLRQ RI WKH %&&6$3  , H[SUHVV P\ DSSUHFLDWLRQ RI DOO WKH H[SHUWV
LQFOXGLQJWKRVHIURPWKHFLYLOVRFLHW\ZKRFDPHIRUZDUGWRKHOSLQWKLVQDWLRQDOHIIRUW

'U+DVDQ0DKPXG03
6WDWH0LQLVWHU
0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV
*RYHUQPHQWRIWKH3HRSOH
V5HSXEOLFRI%DQJODGHVK

6800$5<
%DQJODGHVK LV RQH RI WKH PRVW FOLPDWH
V 9LVLRQ LV WR
YXOQHUDEOH FRXQWULHV LQ WKH ZRUOG DQG ZLOO
EHFRPH HYHQ PRUH VR DV D UHVXOW RI FOLPDWH
FKDQJH)ORRGVWURSLFDOF\FORQHVVWRUPVXUJHV
DQG GURXJKWV DUH OLNHO\ WR EHFRPH PRUH
IUHTXHQWDQGVHYHUHLQWKHFRPLQJ\HDUV0DQ\
ZRXOGVD\WKDWWKHVLJQVRIWKHIXWXUHFKDQJHV
KDYHDOUHDG\EHJXQWREHFRPHDSSDUHQW7KHVH
FKDQJHV ZLOO WKUHDWHQ WKH VLJQLILFDQW
DFKLHYHPHQWV %DQJODGHVK KDV PDGH RYHU WKH
ODVW\HDUVLQLQFUHDVLQJLQFRPHVDQGUHGXFLQJ
SRYHUW\ DQG ZLOO PDNH LW PRUH GLIILFXOW WR
DFKLHYH WKH 0'*V ,W LV HVVHQWLDO WKDW
%DQJODGHVK SUHSDUHV QRZ WR DGDSW WR FOLPDWH
FKDQJHDQGVDIHJXDUGWKHIXWXUHZHOOEHLQJRI
LWV FLWL]HQV ,QGHHG WKH QHZ GHPRFUDWLF
JRYHUQPHQW LV XQHTXLYRFDO LQ LWV FRPPLWPHQW
WR SURWHFW WKH SHRSOH IURP WKH UDYDJHV RI
FOLPDWHFKDQJHDVVWDWHGFOHDUO\LQLWVHOHFWLRQ
PDQLIHVWR
2YHU WKH ODVW  \HDUV WKH *RYHUQPHQW RI
%DQJODGHVK KDV LQYHVWHG RYHU  ELOOLRQ WR
PDNH WKH FRXQWU\ OHVV YXOQHUDEOH WR QDWXUDO
GLVDVWHUV 7KHVH LQYHVWPHQWV LQ PDQ\ FDVHV
VXSSRUWHG E\ GHYHORSPHQW  SDUWQHUV LQFOXGH
IORRG PDQDJHPHQW VFKHPHV FRDVWDO SROGHUV
F\FORQH DQG IORRG VKHOWHUV DQG WKH UDLVLQJ RI
URDGV DQG KLJKZD\V DERYH IORRG OHYHO ,Q
DGGLWLRQ WKH *RYHUQPHQW RI %DQJODGHVK KDV
GHYHORSHGVWDWHRIWKHDUWZDUQLQJV\VWHPVIRU
IORRGV F\FORQHV DQG VWRUP VXUJHV DQG LV
H[SDQGLQJ FRPPXQLW\EDVHG GLVDVWHU
SUHSDUHGQHVV&OLPDWHUHVLOLHQWYDULHWLHVRIULFH
DQGRWKHUFURSVKDYHDOVREHHQGHYHORSHG
7KHFKDOOHQJH%DQJODGHVKQRZIDFHVLVWRVFDOH
XS WKHVH LQYHVWPHQWV WR FUHDWH D VXLWDEOH
VDOUHDG\SURYHQGLVDVWHU
HQYLURQPHQW IRU WKH HFRQRPLF DQG VRFLDO
GHYHORSPHQWRIWKHFRXQWU\DQGWRVHFXUHWKH
ZHOOEHLQJRIWKHSHRSOHHVSHFLDOO\WKHSRRUHVW
DQG PRVW YXOQHUDEOH JURXSV LQFOXGLQJ ZRPHQ
DQGFKLOGUHQ
[YLL
7KH *RYHUQPHQW RI %DQJODGHVK
HUDGLFDWH SRYHUW\ DQG DFKLHYH HFRQRPLF DQG
VRFLDOZHOOEHLQJIRUDOOWKHSHRSOH7KLVZLOOEH
DFKLHYHG WKURXJK D SURSRRU &OLPDWH &KDQJH
0DQDJHPHQW 6WUDWHJ\ ZKLFK SULRULWL]HV
DGDSWDWLRQ DQG GLVDVWHU ULVN UHGXFWLRQ DQG DOVR
DGGUHVVHV ORZ FDUERQ GHYHORSPHQW PLWLJDWLRQ
WHFKQRORJ\ WUDQVIHU DQG WKH PRELOL]DWLRQ DQG
LQWHUQDWLRQDOSURYLVLRQRIDGHTXDWHILQDQFH
6HFWLRQV , WR 9 RI WKH GRFXPHQW SURYLGH WKH
FRQWH[W RXWOLQH WKH LPSOLFDWLRQV DQG OLNHO\
LPSDFWVRIFOLPDWHFKDQJHLQ%DQJODGHVKSURYLGH
DQ RYHUYLHZ RI GLIIHUHQW DGDSWDWLRQ VWUDWHJLHV
DQGEULHIO\RXWOLQHPLWLJDWLRQLVVXHV6HFWLRQV9,
WR9,,GHVFULEHDWHQ\HDUSURJUDPPHWREXLOGWKH
FDSDFLW\ DQG UHVLOLHQFH RI WKH FRXQWU\ WR PHHW
WKH FKDOOHQJH RI FOLPDWH FKDQJH RYHU WKH QH[W
\HDUV
7KH &OLPDWH &KDQJH $FWLRQ 3ODQ LV EXLOW RQ VL[
SLOODUV

)RRG VHFXULW\ VRFLDO SURWHFWLRQ DQG KHDOWK WR
HQVXUH WKDW WKH SRRUHVW DQG PRVW YXOQHUDEOH LQ
VRFLHW\ LQFOXGLQJ ZRPHQ DQG FKLOGUHQ DUH
SURWHFWHG IURP FOLPDWH FKDQJH DQG WKDW DOO
SURJUDPPHVIRFXVRQWKHQHHGVRIWKLVJURXSIRU
IRRG VHFXULW\ VDIH KRXVLQJ HPSOR\PHQW DQG
DFFHVVWREDVLFVHUYLFHVLQFOXGLQJKHDOWK

&RPSUHKHQVLYH GLVDVWHU PDQDJHPHQW WR IXUWKHU
VWUHQJWKHQWKHFRXQWU\
PDQDJHPHQW V\VWHPV WR GHDO ZLWK LQFUHDVLQJO\
IUHTXHQWDQGVHYHUHQDWXUDOFDODPLWLHV
 [YLLL

7KH &OLPDWH &KDQJH $FWLRQ 3ODQ ZLOO EH

 LPSOHPHQWHGXQGHUWKHRYHUDOOJXLGDQFHRIWKH
,QIUDVWUXFWXUHWRHQVXUHWKDWH[LVWLQJDVVHWVHJ 1DWLRQDO  (QYLURQPHQW &RPPLWWHH FKDLUHG E\
FRDVWDO DQG ULYHU HPEDQNPHQWV DUH ZHOO WKH 3ULPH 0LQLVWHU ,W ZLOO EH FRRUGLQDWHG E\
PDLQWDLQHGDQGILWIRUSXUSRVHDQGWKDWXUJHQWO\ FRQFHUQHG0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV
QHHGHGLQIUDVWUXFWXUHHJF\FORQHVKHOWHUVDQG 3URJUDPPHV IXQGHG XQGHU WKH 3ODQ ZLOO EH
XUEDQGUDLQDJHLVSXWLQSODFHWRGHDOZLWKWKH LPSOHPHQWHG E\ FRQFHUQHG 0LQLVWULHV RU WKHLU
OLNHO\LPSDFWVRIFOLPDWHFKDQJH DJHQFLHVZLWKWKHLQYROYHPHQWDVDSSURSULDWH
RIFLYLOVRFLHW\DQGWKHSULYDWHVHFWRU

7KH &OLPDWH &KDQJH 6WUDWHJ\ DQG $FWLRQ 3ODQ

  LV WKH UHYLVHG YHUVLRQ RI WKH LQLWLDO
5HVHDUFKDQGNQRZOHGJHPDQDJHPHQWWRSUHGLFW GRFXPHQWZLWKWKHVDPHWLWOHSUHSDUHGLQ
WKH OLNHO\ VFDOH DQG WLPLQJ RI FOLPDWH FKDQJH 7KH LQLWLDO GRFXPHQW KDG EHHQ GHYHORSHG LQ
LPSDFWVRQGLIIHUHQWVHFWRUVRIWKHHFRQRP\DQG  E\ WKH WKHQ *RYHUQPHQW RI %DQJODGHVK LQ
VRFLRHFRQRPLFJURXSVWRXQGHUSLQIXWXUHLQYHVW FRQVXOWDWLRQ ZLWK FLYLO VRFLHW\ LQFOXGLQJ 1*2V
PHQWVWUDWHJLHVDQGWRHQVXUHWKDW%DQJODGHVKLV UHVHDUFK RUJDQL]DWLRQV WKH SULYDWH VHFWRU DQG
QHWZRUNHG LQWR WKH ODWHVW JOREDO WKLQNLQJ RQ GHYHORSPHQWSDUWQHUV7KHLQLWLDODQGWKH
VFLHQFH DQG EHVW SUDFWLFHV RI FOLPDWH FKDQJH UHYLVHG  &OLPDWH &KDQJH 6WUDWHJ\ DQG
PDQDJHPHQW $FWLRQ 3ODQ EXLOG RQ DQG VXEVWDQWLDOO\ H[SDQGV
WKH 1DWLRQDO $GDSWDWLRQ 3URJUDPPH RI $FWLRQ
 DQG NQRZOHGJH DUH JDLQHG LQ LPSOHPHQWLQJ
0LWLJDWLRQDQGORZFDUERQGHYHORSPHQWWRHYROYH
ORZFDUERQGHYHORSPHQWRSWLRQVDQGLPSOHPHQW
WKHVH DV WKH FRXQWU\
V HFRQRP\ JURZV RYHU WKH HPHUJHLQIXWXUH
FRPLQJ GHFDGHV DQG WKH GHPDQG IRU HQHUJ\
LQFUHDVHV
 PLQLVWULHVDJHQFLHV IRU HDFK RI WKH SURJUDPPH
&DSDFLW\EXLOGLQJDQGLQVWLWXWLRQDOVWUHQJWKHQLQJ
WRHQKDQFHWKHFDSDFLW\RIJRYHUQPHQWPLQLVWULHV
DQGDJHQFLHVFLYLOVRFLHW\DQGWKHSULYDWHVHFWRU
WR PHHW WKH FKDOOHQJH RI FOLPDWH FKDQJH DQG
PDLQVWUHDP WKHP DV SDUW RI GHYHORSPHQW
DFWLRQV
7KHQHHGVRIWKHSRRUDQGYXOQHUDEOHLQFOXGLQJ
ZRPHQ DQG FKLOGUHQ ZLOO EH SULRULWL]HG LQ DOO
DFWLYLWLHV LPSOHPHQWHG XQGHU WKH $FWLRQ 3ODQ
7KH &OLPDWH &KDQJH $FWLRQ 3ODQ FRPSULVHV
LPPHGLDWH VKRUW PHGLXP DQG ORQJWHUP
SURJUDPPHV
1$3$SXEOLVKHGLQ7KH%&&6$3ZLOO
EH UHYLHZHG DQG UHYLVHG DV IXUWKHU H[SHULHQFH
DGDSWDWLRQDQGUHODWHGUHVHDUFKSURJUDPPHVDV
ZHOO DV QHZ GHYHORSPHQW SULRULWLHV WKDW PD\

7KHUH DUH  SURJUDPPHV OLVWHG LQ $QQH[ 7KH
DQQRWDWLRQV IRU MXVWLILFDWLRQ WKH NLQG RI
DFWLYLWLHVWREHXQGHUWDNHQDQGWKHUHVSRQVLEOH
ZLWKLQ WKH VL[ SLOODUV RXWOLQHG DERYH LV DOVR
SURYLGHGLQ$QQH[7KHVHSURJUDPPHVZRXOGEH
HODERUDWHG ZLWK DOO GHWDLOV LQ FRQVXOWDWLRQ ZLWK
WKH VWDNHKROGHUV DW WKH WLPH RI WKHLU SODQQLQJ
DQGLPSOHPHQWDWLRQ7KLVOLVWRISURJUDPPHVLV
E\QRPHDQVH[KDXVWLYH,WRQO\RXWOLQHVWKHILUVW
VHWRIDFWLYLWLHVWKDWDUHWREHXQGHUWDNHQLQOLQH
ZLWK WKH QHHGV RI WKH FRPPXQLWLHV DQG WKH
RYHUDOOGHYHORSPHQWSURJUDPPHRI%DQJODGHVK
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

,,1752'8&7,21
&RQWH[W
V DELOLW\ WR DFKLHYH WKH KLJK UDWHV RI
 6LQFH %DQJODGHVK DFKLHYHG ,QGHSHQGHQFH LQ
*'3KDVPRUHWKDQWULSOHGLQUHDOWHUPV  UHGXFWLRQV LQ SRYHUW\ ,Q FRPLQJ \HDUV LW LV
IRRG SURGXFWLRQ KDV LQFUHDVHG WKUHHIROG  WKH
SRSXODWLRQJURZWKUDWHKDVGHFOLQHGIURPDURXQG
SHUDQQXPLQWRLQDQGWKH
FRXQWU\LVQRZODUJHO\IRRGVHFXUH2YHUWKHODVW
 RIWKHQDWLRQDQGWKHHFRQRP\,QWKHZRUVWFDVH
\HDUVJURZWKKDVDFFHOHUDWHGDQGWKHFRXQWU\
LVRQWUDFNWREHFRPHDPLGGOHLQFRPHFRXQWU\
E\  ZKHQ LW FHOHEUDWHV LWV  \HDUV RI
LQGHSHQGHQFH,QIRXURXWRIWKHODVWILYH\HDUV
HQYLURQPHQWDOUHIXJHHV
IURPFRDVWDO
WKH HFRQRP\ KDV JURZQ DW RYHU   (YHQ WKLV
\HDUZLWKJOREDOUHFHVVLRQWKHH[SHFWHGUDWHRI
JURZWKLVRUVR%HWZHHQDQGWKH
SHUFHQWDJH RI SHRSOH OLYLQJ LQ SRYHUW\ GHFOLQHG

IURP  WR  DQG WKH FRXQWU\
V +XPDQ DKHDG DQG VDIHJXDUG WKH IXWXUH HFRQRPLF
'HYHORSPHQW,QGH[LPSURYHGIURPLQ
WR  LQ  &KLOG PRUWDOLW\ KDV IDOOHQ
VXEVWDQWLDOO\ DQG JHQGHU SDULW\ LQ SULPDU\
HGXFDWLRQKDVEHHQDFKLHYHG
 &OLPDWH FKDQJH ZLOO VHYHUHO\ FKDOOHQJH WKH
FRXQWU\
HFRQRPLF JURZWK QHHGHG WR VXVWDLQ WKHVH
SUHGLFWHGWKDWWKHUHZLOOEHLQFUHDVLQJO\IUHTXHQW
DQG VHYHUH IORRGV WURSLFDO F\FORQHV VWRUP
VXUJHVDQGGURXJKWVZKLFKZLOOGLVUXSWWKHOLIH
VFHQDULR XQOHVV H[LVWLQJ FRDVWDO SROGHUV DUH
VWUHQJWKHQHG DQG QHZ RQHV EXLOW VHD OHYHO ULVH
FRXOG UHVXOW LQ WKH GLVSODFHPHQW RI PLOOLRQV RI
SHRSOH
UHJLRQV DQG KDYH KXJH DGYHUVH LPSDFWV RQ WKH
OLYHOLKRRGV DQG ORQJWHUP KHDOWK RI D ODUJH
SURSRUWLRQRIWKHSRSXODWLRQ,WLVHVVHQWLDOWKDW
%DQJODGHVK SUHSDUHV QRZ WR IDFH WKH FKDOOHQJH
ZHOOEHLQJDQGWKHOLYHOLKRRGVRIKHUSHRSOH
2YHUWKHODVWWKUHHGHFDGHVWKH*RYHUQPHQW
KDV LQYHVWHG RYHU  ELOOLRQ DW FRQVWDQW 
'HVSLWHWKHVHVXFFHVVHVPRUHWKDQPLOOLRQ
 +LJK IRRG
RI WKH SHRSOH VWLOO OLYH LQ SRYHUW\
SULFHVRYHUWKHODVWWZR\HDUVPD\KDYHVZHOOHG
WKHLUUDQNE\DIHZPLOOLRQPRUH0DQ\RIWKHVH
SHRSOHOLYHLQUHPRWHRUHFRORJLFDOO\IUDJLOHSDUWV
SULFHV WR PDNH WKH FRXQWU\ PRUH FOLPDWH
UHVLOLHQWDQGOHVVYXOQHUDEOHWRQDWXUDOGLVDVWHUV
)ORRG PDQDJHPHQW HPEDQNPHQWV FRDVWDO
SROGHUVDQGF\FORQHVKHOWHUVKDYHEHHQEXLOWDQG
LPSRUWDQW OHVVRQV OHDUQW RQ KRZ WR LPSOHPHQW
VXFK SURMHFWV VXFFHVVIXOO\ LQ WKH G\QDPLF
RIWKHFRXQWU\VXFKDVULYHULVODQGVFKDUVDQG K\GURORJLFDO FRQGLWLRQV LQ %DQJODGHVK DQG ZLWK
F\FORQHSURQHFRDVWDOEHOWVZKLFKDUHHVSHFLDOO\ WKH DFWLYH SDUWLFLSDWLRQ RI FRPPXQLWLHV $
YXOQHUDEOH WR QDWXUDO GLVDVWHUV ,Q WKH UHFHQWO\ FRPSUHKHQVLYH V\VWHP RI GLVDVWHU SUHSDUHGQHVV
UHOHDVHG 3RYHUW\ 5HGXFWLRQ 6WUDWHJ\ 3DSHU DQG PDQDJHPHQW LQFOXGLQJ 6WDQGLQJ 2UGHUV RQ
 WKH *RYHUQPHQW RI %DQJODGHVK
UHDIILUPHGLWVFRPPLWPHQWWRWKH0'*WDUJHWV
LQFOXGLQJKDOYLQJSRYHUW\DQGKXQJHUE\WKH\HDU
WKURXJKDVWUDWHJ\RISURSRRUJURZWKDQG
FOLPDWHUHVLOLHQWGHYHORSPHQW7KH*RYHUQPHQW
LVQRZLQWKHSURFHVVRISUHSDULQJWKH6L[WK)LYH
'LVDVWHU  ZKLFK GHWDLOV WKH UHVSRQVLELOLWLHV RI
*RYHUQPHQW RIILFLDOV DQG RWKHUV DW WLPHV RI
GLVDVWHU KDV DOVR EHHQ SXW LQ SODFH 7KH
*RYHUQPHQW GHPRQVWUDWHG LWV UHDGLQHVV LQ
GHDOLQJZLWKGLVDVWHUVLQZKHQWKHFRXQWU\
VXIIHUHGWZRVHULRXVIORRGVDQGDVHYHUHWURSLFDO
<HDU 3ODQ  EDVHG RQ LWV F\FORQH&\FORQH6LGULQWKHVDPH\HDU
HOHFWLRQ SURPLVHV ZKLFK DOVR HQGRUVH WKHVH
EURDG SULQFLSOHV RI GHYHORSPHQW ZLWK IDVWHU
UHGXFWLRQRISRYHUW\

 *RYW RI %DQJODGHVK  )LIWK )LYH<HDU 3ODQ 3ODQQLQJ *RYWRI%DQJODGHVK(FRQRPLF6XUYH\0LQLVWU\RI
&RPPLVVLRQ 'KDND DQG *RYW RI %DQJODGHVK  %DQJODGHVK )LQDQFH'KDND0LQLVWU\RI)LQDQFH'KDND
(FRQRPLF6XUYH\0LQLVWU\RI)LQDQFH'KDND  %DQJODGHVK %XUHDX RI 6WDWLVWLFV  6WDWLVWLFDO <HDUERRN
$VIRRWQRWH 'KDND
 %DQJODGHVK %XUHDX RI 6WDWLVWLFV <HDUERRNV  DQG   8QLWHG 1DWLRQV 'HYHORSPHQW 3URJUDPPH  +XPDQ
'KDND 'HYHORSPHQW5HSRUW1HZ<RUN
3RYHUW\LVGHILQHGDVQXWULWLRQDOLQWDNHRINFDORUOHVV
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

7KHFKDOOHQJHQRZIDFLQJWKHFRXQWU\LVWRVFDOH
XSLWVSUHSDUHGQHVVDQGUHVLOLHQFHDQGSURWHFWWKH
OLYHV DQG OLYHOLKRRGV RI WKH SHRSOH HVSHFLDOO\ WKH
SRRUHVW DQG PRVW YXOQHUDEOH IDPLOLHV LQFOXGLQJ
ZRPHQ DQG FKLOGUHQ 7KH SHRSOH DQG WKH QHZ
KDUGWRHQVXUHWKDWWKHFXUUHQWURXQGRIFOLPDWH
FKDQJH QHJRWLDWLRQV OHDGLQJ WR WKH HVWDEOLVK
PHQW RI D IDLU DQG HTXLWDEOH SRVW.\RWR )UDPH
ZRUN DQG RXWFRPH IRU GHYHORSLQJ FRXQWULHV DW
WKH  &RSHQKDJHQ &RQIHUHQFH RI 3DUWLHV
GHPRFUDWLF *RYHUQPHQW RI %DQJODGHVK DUH UHDG\ &23LVVXFFHVVIXO
DQGZLOOLQJWRULVHWRWKLVFKDOOHQJH

9LVLRQ6WUDWHJ\DQG
3XWWLQJ WKH %DOL 5RDGPDS
$FWLRQ3ODQ
LQWRDFWLRQ
7KHFRXQWU\LVVWULYLQJWRDFFHOHUDWHHFRQRPLF
7KHWK&RQIHUHQFHRI3DUWLHVWRWKH81)UDPH JURZWK DQG VXEVWDQWLDOO\ HUDGLFDWH SRYHUW\ E\
ZRUN&RQYHQWLRQRQ&OLPDWH&KDQJH81)&&&KHOG
LQ %DOL LQ 'HFHPEHU  ODXQFKHG WKH %DOL $FWLRQ
3ODQ ZKLFK LGHQWLILHG D VHW RI DFWLRQV HVVHQWLDO WR
DFKLHYH D VHFXUH FOLPDWH IXWXUH %DQJODGHVK 
LQ LWV
VXEVHTXHQWVXEPLVVLRQRQWKH%DOL$FWLRQ3ODQPDGH
LWH[SOLFLWWKDWGHYHORSPHQWDQGSRYHUW\HUDGLFDWLRQ
LVWKHSULRULW\IRUWKHFRXQWU\7KHFRXQWU\RSSRVHV
V YLVLRQ UHJDUGLQJ
DQ\ DFWLRQ WKDW PD\ MHRSDUGL]H WKH DWWDLQPHQW RI
VHFXUHDFFHVVWRIRRGZDWHUHQHUJ\DQGOLYHOLKRRGV
7KHVWDWHPHQWJLYHQE\%DQJODGHVKDWWKH81
*HQHUDO$VVHPEO\LQ)HEUXDU\RQEHKDOIRI
EXWDYRLGLQJWKHKDUVKHQYLURQPHQWDOSULFH
PDQ\FRXQWULHVKDYHSDLGLQWKHSXUVXLWRIJURZWK
7RWKLVHQGWKH*RYHUQPHQWKDVSUHSDUHG9LVLRQ
DQGLVLQWKHSURFHVVRISUHSDULQJWKH6L[WK
)LYH<HDU3ODQERWKRIZKLFKDUHDQGZLOOEHEDVHG
RQWKHSULQFLSOHRIVXVWDLQDEOHGHYHORSPHQW7KH
*RYHUQPHQW RI %DQJODGHVK
PDQDJHPHQWRIFOLPDWHFKDQJHIRUXQLQWHUUXSWHG
DQGVXVWDLQDEOHGHYHORSPHQWLVDQLQWHJUDOSDUWRI
WKH 9LVLRQ  9HU\ EULHIO\ LW LV WR HUDGLFDWH
SRYHUW\ LQFUHDVH HPSOR\PHQW RSSRUWXQLWLHV
HQVXUHIRRGVHFXULW\SURYLGHDFFHVVWRHQHUJ\ 
SRZHU DQG DFKLHYH HFRQRPLF DQG VRFLDO
WKH/HDVW'HYHORSHG&RXQWULHV/'&VHPSKDVL]HG
WKHQHHGIRULPPHGLDWHLQWHUQDWLRQDOVXSSRUWWR
EXLOGWKH/'&·VUHVLOLHQFHWRJOREDOZDUPLQJDQG
FOLPDWH FKDQJH 6XEVHTXHQWO\ %DQJODGHVK
DFWLYHO\WRRNSDUWLQFOLPDWHFKDQJHWDONVLQ&23
 LQ 3R]QDQ LQ 'HFHPEHU  DQG LQ %RQQ LQ
0DUFK$SULO  DQG PDGH VXEPLVVLRQV IRU
QHJRWLDWLRQV WKDW KDV HQWHUHG D FULWLFDO SKDVH
QRZ$OOKDYHHPSKDVL]HGWKHQHHGIRULPPHGLDWH
LQWHUQDWLRQDO VXSSRUW WR EXLOG WKH FDSDFLW\ RI
%DQJODGHVKDQGRWKHU/'&VIRUEXLOGLQJUHVLOLHQFH
WRJOREDOZDUPLQJDQGFOLPDWHFKDQJH%DQJODGHVK
KDV SRLQWHG RXW WLPH DQG DJDLQ WKDW WKH
UHVRXUFHVFXUUHQWO\DYDLODEOHIRUDGDSWDWLRQDUH
JURVVO\ LQDGHTXDWH WR PHHW WKH QHHGV RI WKH
/'&VZKRZLOOEHDUWKHEUXQWRIFOLPDWHFKDQJH
 $GDSWDWLRQ LV WKH SULRULW\ IRU %DQJODGHVK LQ
WKHVKRUWWRPHGLXPWHUP7KHFRXQWU\LVDOUHDG\
D ZRUOG OHDGHU LQ WKH UHVHDUFK GHVLJQ DQG
LPSOHPHQWDWLRQ RI DGDSWDWLRQ VWUDWHJLHV DQG
WKLV ZRUN ZLOO FRQWLQXH ,Q WKH ORQJWHUP
KRZHYHU FOLPDWH UHVLOLHQFH ZLOO UHTXLUH YHU\
GHHS FXWV LQ JUHHQKRXVH JDV HPLVVLRQV E\ WKH
´$QQH[ SDUWLHV LQFOXGLQJ WKH GHYHORSHG
LQGXVWULDOL]HG QDWLRQV 7R DFKLHYH WKLV
%DQJODGHVKLVZRUNLQJ
KWWSZZZXQIFFFLQWUHVRXUFHVGRFVDZJOFDHQJOLVKPLVFSGI
ZHOOEHLQJ RI DOO FLWL]HQV RI WKH FRXQWU\
%DQJODGHVK ZLOO DFKLHYH WKLV JRDO WKURXJK D
VWUDWHJ\ RI  SURSRRU FOLPDWH UHVLOLHQW DQG ORZ
FDUERQ GHYHORSPHQW EDVHG RQ WKH IRXU EXLOGLQJ
EORFNV RI WKH %DOL $FWLRQ 3ODQDGDSWDWLRQ WR
FOLPDWH FKDQJH PLWLJDWLRQ WHFKQRORJ\ WUDQVIHU
DQG DGHTXDWH DQG WLPHO\ IORZ RI IXQGV IRU
LQYHVWPHQW ZLWKLQ DQ LQYLRODWH IUDPHZRUN RI
IRRG HQHUJ\ ZDWHU OLYHOLKRRGV DQG KHDOWK
VHFXULW\7KH*RYHUQPHQWLVILUPO\FRPPLWWHGWR
´DQ LQWHJUDWHG SROLF\ DQG SODQ WR SURWHFW WKH
FRXQWU\ IURP WKH DGYHUVH HIIHFWV RI JOREDO
ZDUPLQJµDVHODERUDWHGLQLWVHOHFWLRQPDQLIHVWR
7KH PDQLIHVWR HPSKDVL]HV ZDWHU PDQDJHPHQW
DQG EDVLQZLVH GUDLQDJH DQG GHYHORSPHQW
SURJUDPPHFDUHIXOIRUHVWUHVRXUFHPDQDJHPHQW
SURWHFWLRQRIIORUDDQGIDXQDVSHFLHVFRQWURORI
SROOXWLQJ FKHPLFDOV LQ DJULFXOWXUDO GHYHORSPHQW
UHVWUDLQWRQDLUSROOXWLRQE\WUDQVSRUWDQGSRZHU
VHFWRUVDGRSWLRQRIHQYLURQPHQWDOSURWHFWLRQLQ
XUEDQL]DWLRQ SODQ DQG DERYH DOO LQ UHJLRQDO DQG
JOREDO FRRSHUDWLRQ IRU SURWHFWLRQ RI WKH
HQYLURQPHQWDQGPLWLJDWLRQRIFOLPDWHFKDQJHV
5HVHWWOHPHQWRIHQYLURQPHQWDOUHIXJHHVLQYRNLQJ
WKHIUHHPRYHPHQWRIQDWXUDOSHUVRQVPXVWEH
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

PRQLWRUHGDQGDGHTXDWHLQVWLWXWLRQDOVXSSRUWLV WKH PLQLVWULHV DV ZHOO DV QHWZRUN ZLWK DOO

WREHSURYLGHG,WLVDSSUHKHQGHGWKDWSRSXODWLRQ VWDNHKROGHUV WKH SHRSOH LQ JHQHUDO WKH FLYLO
IURP PDQ\ SDUWV RI WKH FRXQWU\ VSHFLDOO\ IURP VRFLHW\ 1*2V WKH SULYDWH VHFWRU DQG
FRDVWDO ]RQH PD\ KDYH WR PRYH RXW ,Q WKHVH LQWHUQDWLRQDODFWRUVLQDQLQFOXVLYHPDQQHU
DUHDV OLYHOLKRRG RSSRUWXQLWLHV ZLOO EH ORVW DQG
SURGXFWLYLW\ LQ DJULFXOWXUDO VHFWRU ZLOO EH
UHGXFHGVLJQLILFDQWO\

7KH&OLPDWH&KDQJH6WUDWHJ\DQG$FWLRQ3ODQRI
%DQJODGHVKLVDSDUWRIWKHRYHUDOOGHYHORSPHQW
VWUDWHJ\ RI WKH FRXQWU\ 7KH FOLPDWH FKDQJH
FRQVWUDLQWV DQG RSSRUWXQLWLHV DUH EHLQJ
LQWHJUDWHGLQWRWKHRYHUDOOSODQDQGSURJUDPPHV
LQYROYLQJDOOVHFWRUVDQGSURFHVVHVIRUHFRQRPLF
DQGVRFLDOGHYHORSPHQW

 7KH VWUDWHJ\ ZLOO EH DFKLHYHG WKURXJK WKH

LPSOHPHQWDWLRQRIDQ$FWLRQ3ODQZKLFKZLOOKDYH
VL[SLOODUV)RRGVHFXULW\VRFLDOSURWHFWLRQDQG
KHDOWK&RPSUHKHQVLYHGLVDVWHUPDQDJHPHQW
,QIUDVWUXFWXUHGHYHORSPHQW5HVHDUFKDQG
NQRZOHGJH PDQDJHPHQW  0LWLJDWLRQ DQG
ORZFDUERQ GHYHORSPHQW DQG  &DSDFLW\
EXLOGLQJ DQG LQVWLWXWLRQDO GHYHORSPHQW 7KH
$FWLRQ 3ODQ ZLOO EH DQ LQWHJUDO SDUW RI QDWLRQDO
GHYHORSPHQW SROLFLHV SODQV DQG SURJUDPPHV
LQFOXGLQJ WKH XSFRPLQJ 6L[WK )LYH <HDU 3ODQ
*LYHQWKHVSHFLILFQDWXUHKRZHYHURIWKHSUREOHP
RI FOLPDWH FKDQJH SDUWLFXODUO\ WKRVH UHODWHG WR
IXWXUHELRSK\VLFDODQGQDWXUDOSURFHVVHVZKLFK
DUHDV\HWXQFHUWDLQDQGWKHLQWLPDWHOLQNRIWKH
UHOHYDQW QDWLRQDO DFWLRQV ZLWK LQWHUQDWLRQDO
QHJRWLDWLRQVIRUHPLVVLRQFRQWURODVZHOODVWKHLU
ILQDQFLQJDQGWHFKQRORJLFDOVXSSRUWE\DQGIURP
WKH GHYHORSHG FRXQWULHV IRU FRQWLQXRXV
PRQLWRULQJ RI SURFHVVHV  DQG HYHQWV QDWXUDO
VFLHQWLILFQHJRWLDWLRQVWKH$FWLRQ3ODQQHHGVWR
EH FRRUGLQDWHG UHJXODUO\ E\ D ERG\ VXFK DV D
&OLPDWH&KDQJH8QLWVSHFLILFDOO\FUHDWHGIRUWKH
SXUSRVH E\ WKH 0LQLVWU\ RI (QYLURQPHQW DQG
)RUHVWV7KH8QLWZLOORSHUDWHXQGHUWKHRYHUDOO
JXLGDQFH RI WKH 1DWLRQDO (QYLURQPHQW
&RPPLWWHHFKDLUHGE\WKH3ULPH0LQLVWHUDQGWKH
1DWLRQDO6WHHULQJ&RPPLWWHHRQ&OLPDWH&KDQJH
KHDGHG E\ WKH 0LQLVWHU IRU 0LQLVWU\ RI
(QYLURQPHQW DQG )RUHVWV $OO UHOHYDQW VHFWRUDO
PLQLVWULHVZLOOKDYH&OLPDWH&KDQJH)RFDO3RLQWV
ZKLFK ZLOO ORRN DIWHU GHVLJQ DQG KHOS LQ
LPSOHPHQWDWLRQRIVHFWRUDOSROLFLHVSURJUDPPHV
DQG SURMHFWV IURP FOLPDWH FKDQJH SHUVSHFWLYHV
DVDQGZKHQVRUHTXLUHGZLWKLQWKHIUDPHZRUNRI
WKH SODQQHG GHYHORSPHQW SURFHVV 7KH &OLPDWH
&KDQJH 8QLW ZLOO FRRUGLQDWH DQG IDFLOLWDWH WKH
ZRUNVRIWKH&OLPDWH&KDQJH)RFDO3RLQWVLQDOO
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

,,&/,0$7(+$=$5'6,1
%$1*/$'(6+
OHYHO ULVHV RI EHWZHHQ  DQG  PHWUHV
%DFNJURXQG ZKLFKFRXOGLQFUHDVHFRDVWDOIORRGLQJDQGVDOLQH
LQWUXVLRQ LQWR DTXLIHUV DQG ULYHUV DFURVV D ZLGH
 7KH ,QWHUJRYHUQPHQWDO 3DQHO RQ &OLPDWH EHOWLQWKHVRXWKRIWKHFRXQWU\DOWKRXJKPRVW
&KDQJH,3&&SUHGLFWVWKDWJOREDOWHPSHUDWXUHV
 
ZLOO ULVH EHWZHHQ  & DQG  & E\ WKH ODVW

GHFDGH RI WKH VW FHQWXU\  7KH LPSDFWV RI
JOREDO ZDUPLQJ RQ WKHFOLPDWH KRZHYHU ZLOO
YDU\LQGLIIHUHQWUHJLRQVRIWKHZRUOG
WK
 ,Q 6RXWK $VLD WKH   ,3&& 5HSRUW SUHGLFWV
WKDW PRQVRRQUDLQIDOOZLOOLQFUHDVHUHVXOWLQJLQ
KLJKHU IORZV GXULQJ WKH PRQVRRQ VHDVRQ LQ WKH
RI WKH DUHD LV SURWHFWHG E\ SROGHUV 5DLQIDOO LV
SUHGLFWHG WR EHFRPH ERWK KLJKHU DQG PRUH
HUUDWLF DQG WKH IUHTXHQF\ DQG LQWHQVLW\ RI
GURXJKWVDUHOLNHO\WRLQFUHDVHHVSHFLDOO\LQWKH
GULHUQRUWKHUQDQGZHVWHUQSDUWVRIWKHFRXQWU\
%DQJODGHVKLVZLGHO\UHFRJQL]HGWREHRQHRI
WKH PRVW FOLPDWH YXOQHUDEOH FRXQWULHV LQ WKH
ZRUOG,WH[SHULHQFHVIUHTXHQWQDWXUDOGLVDVWHUV
ULYHUV ZKLFK IORZ LQWR %DQJODGHVK IURP ,QGLD
1HSDO%KXWDQDQG&KLQD7KHVHIORZVDUHOLNHO\
WR IXUWKHU LQFUHDVH LQ WKH PHGLXP WHUP GXH WR
WKHPHOWLQJRIWKH+LPDOD\DQJODFLHUV7KH,3&&
DOVRIRUHFDVWVWKDWJOREDOZDUPLQJZLOOUHVXOWLQ
VHD
ZKLFKFDXVHORVVRIOLIHVHH%R[GDPDJHWR
LQIUDVWUXFWXUH DQG HFRQRPLF DVVHWV DQG
DGYHUVHO\LPSDFWVRQOLYHVDQGOLYHOLKRRGVHVSH
FLDOO\RISRRUSHRSOH

3KRWR%RDWSOD\LQJRQDFLW\URDG 6RXUFH&156'KDND

:RUNLQJ*URXS,3&&&OLPDWH&KDQJH7KH3K\VLFDO6FLHQFH%DVLV6XPPDU\IRU3ROLF\0DNHUVS
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

%R[  %DQJODGHVK ² RQH RI WKH PRVW FOLPDWH YXOQHUDEOH FRXQWULHV

81'3 KDV LGHQWLILHG %DQJODGHVK WR EH WKH PRVW YXOQHUDEOH FRXQWU\ LQ WKH ZRUOG WR WURSLFDO F\FORQHV DQG WKH
VL[WK PRVW YXOQHUDEOH FRXQWU\ WR IORRGV VHH WDEOH EHORZ

0RVW YXOQHUDEOH FRXQWULHV WR IORRGV RU F\FORQHV

'HDWKV SHRSOH H[SRVHG WR IORRGV RU F\FORQHV

)ORRGV 7URSLFDO F\FORQHV

 9HQH]XHOD   %DQJODGHVK 

 $IJKDQLVWDQ   ,QGLD 

 3DNLVWDQ   3KLOLSSLQHV 

 &KLQD   +RQGXUDV 

 ,QGLD   9LHWQDP 

 %DQJODGHVK   &KLQD 

2I PDMRU IORRGDIIHFWHG FRXQWULHV UHSRUWLQJ DQ DYHUDJH RI RYHU  GHDWKV\HDU

6RXUFH 81'3  $ *OREDO 5HSRUW 5HGXFLQJ 'LVDVWHU 5LVN $ &KDOOHQJH IRU 'HYHORSPHQW
KWWSZZZXQGSRUJEFSU

 %DQJODGHVK LV VXVFHSWLEOH WR IORRGV WURSLFDO F\FORQHV VWRUP VXUJHV DQG GURXJKWV 7KH UHJLRQV RI WKH
FRXQWU\ DIIHFWHG E\ WKHVH GLIIHUHQW KD]DUGV DUH VKRZQ LQ 0DS 

3KRWR )ORRG LQ UXUDO %DQJODGHVK 6RXUFH&156'KDND

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

0DS$UHDVDIIHFWHGE\GLIIHUHQWW\SHVRIFOLPDWHUHODWHGGLVDVWHU

9XOQHUDELOLW\ WR GLIIHUHQW
1DWXUDO +D]DUGV

6RXUFH &(*,6 'KDND

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

)ORRGV DERXW WZR ELOOLRQ WRQHV RI VHGLPHQW HDFK \HDU

7KHWRSRJUDSK\RIWKHFRXQWU\LVPRVWO\ORZDQG
IODW 7ZRWKLUGV RI WKH FRXQWU\ LV OHVV WKDQ 
0RVWRI%DQJODGHVKOLHVLQWKHGHOWDRIWKUHH
PHWUHVDERYHVHDOHYHODQGLVVXVFHSWLEOHWRULYHU
RI WKH ODUJHVW ULYHUV LQ WKH ZRUOG ² WKH
DQGUDLQZDWHUIORRGLQJDQGLQORZHUO\LQJFRDVWDO
%UDKPDSXWUDWKH*DQJHVDQGWKH0HJKQD7KHVH
DUHDVWRWLGDOIORRGLQJGXULQJVWRUPVVHH0DS
ULYHUV KDYH D FRPELQHG SHDN GLVFKDUJH LQ WKH

IORRG VHDVRQ RI  P VHF WKH VHFRQG
KLJKHVWLQWKHZRUOGDIWHUWKH$PD]RQDQGFDUU\

0DS$UHDVYXOQHUDEOHWRIORRGLQJ

6RXUFH &(*,6 'KDND

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

 ,Q DQ

DYHUDJH
 \HDU DSSUR[LPDWHO\ RQH
TXDUWHURIWKHFRXQWU\LVLQXQGDWHG7KHSHRSOH
OLYLQJ LQ WKHVH DUHDV KDYH DGDSWHG E\ EXLOGLQJ
WKHLU KRXVHV RQ UDLVHG PRXQGV DQG DGMXVWLQJ
WKHLUIDUPLQJV\VWHPV,QWKHSDVWSHRSOHKHUH
JUHZ ORZ\LHOGLQJ GHHSZDWHU ULFH GXULQJ WKH
PRQVRRQ VHDVRQ 1RZ WKH\ PRVWO\ FXOWLYDWH
KLJK\LHOGLQJ ULFH FURSV RIWHQ XVLQJ LUULJDWLRQ


2QFHLQHYHU\WR\HDUVKRZHYHUWKHUHLVD
VHYHUH IORRG WKDW PD\ FRYHU RYHU  RI WKH
FRXQWU\ DQG FDXVH ORVV RI OLIH DQG VXEVWDQWLDO
GDPDJH WR LQIUDVWUXFWXUH KRXVLQJ DJULFXOWXUH
DQG OLYHOLKRRGV 'XULQJ VHYHUH IORRGV LW LV WKH
SRRUHVW DQG PRVW YXOQHUDEOH ZKR VXIIHU PRVW
EHFDXVHWKHLUKRXVHVDUHRIWHQLQPRUHH[SRVHG
ORFDWLRQV
6RXUFH )):& 'KDND

3KRWR )ORRG IRUHFDVWLQJ DQG ZDUQLQJ VWDWLRQV

3KRWR )ORRG LQ PDLQ URDG RI 'KDND 6RXUFH ZZZSRIIHWQHW

 ,Q DUHDV FRYHUHG E\ IORRG PDQDJHPHQW SURMHFWV IDUPHUV FDQ RIWHQ JURZ D KLJK\LHOGLQJ ULFH FURS ZKLFK LV SODQWHG GXULQJ
WKHPRQVRRQ AMAN  DQG DQRWKHU SODQWHG LQ WKH GU\ VHDVRQ ZLWK LUULJDWLRQ BORO 
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

 ,Q WKH ODVW  \HDUV %DQJODGHVK KDV WKRXVDQGV RI SHRSOH IURP WKHLU KRPHV )ODVK
H[SHULHQFHGVL[VHYHUHIORRGV%R[,QWZR
VXFFHVVLYH DQG GDPDJLQJ IORRGV LQXQGDWHG WKH
FRXQWU\ LQ WKH VDPH VHDVRQ 'XULQJ KLJK IORRGV
ULYHUEDQNHURVLRQLVFRPPRQ,WFDQUHVXOWLQWKH
ORVV RI WKRXVDQGV RI KHFWDUHV RI DJULFXOWXUDO ODQG
DQG VFRUHV RI YLOODJHV DQG GLVSODFH PDQ\
IORRGV FDQ DOVR EH D SUREOHP LQ WKH PRUH KLOO\
QRUWKHDVWHUQ DQG VRXWKHDVWHUQ UHJLRQV RI WKH
FRXQWU\,QER[WKHVFDOHRIWKHVHYHUHIORRGLQJ
LQDQGLVVKRZQ

%R[  6HULRXV IORRGV LQ WKH ODVW  \HDUV

(YHQW ,PSDFW

 IORRG ,QXQGDWHG RYHU  VT NP HVWLPDWHG GDPDJH 86  PLOOLRQ

 IORRG ,QXQGDWHG RYHU   VT NP HVWLPDWHG GDPDJH 86  ELOOLRQ
 GHDWKV

 IORRG ,QXQGDWHG  RI WKH FRXQWU\ HVWLPDWHG GDPDJH 86  ELOOLRQ
PRUH WKDQ  PLOOLRQ KRPHOHVV EHWZHHQ  GHDWKV

 IORRG ,QXQGDWHG QHDUO\  VT NP UHQGHUHG  PLOOLRQ SHRSOH
KRPHOHVV GDPDJHG  KRPHV KHDY\ ORVV WR LQIUDVWUXFWXUH
HVWLPDWHG GDPDJH 86  ELOOLRQ  GHDWKV

 IORRG ,QXQGDWLRQ  GDPDJH 86  ELOOLRQ DIIHFWHG QHDUO\  PLOOLRQ
SHRSOH (VWLPDWHG GDPDJH RYHU  ELOOLRQ  GHDWKV

 IORRG ,QXQGDWHG  VT NP RYHU  KRXVHV GHVWUR\HG DQG DOPRVW
 PLOOLRQ GDPDJHG DSSUR[LPDWHO\  PLOOLRQ DFUHV RI FURSV
GHVWUR\HG RU SDUWLDOO\ GDPDJHG HVWLPDWHG GDPDJH RYHU  ELOOLRQ
 GHDWKV

6RXUFHV *RYHUQPHQW RI %DQJODGHVK  .ATIONAL !DAPTATION 0ROGRAMME OF !CTION  0LQLVWU\ RI (QYLURQPHQW
DQG )RUHVWV 'KDND DQG *RYHUQPHQW RI %DQJODGHVK 
&RQVROLGDWHG 'DPDJH DQG /RVV $VVHVVPHQW /HVVRQV
/HDUQW IURP WKH )ORRG  DQG )XWXUH $FWLRQ 3ODQ
 'LVDVWHU 0DQDJHPHQW %XUHDX 'KDND
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

3KRWR 5LYHU EDQN HURVLRQ 6RXUFH &156 'KDND

%R[  6DWHOOLWH LPDJHV VKRZLQJ WKH H[WHQW RI IORRGLQJ LQ  DQG 

6RXUFH )):& 'KDND

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

7URSLFDO F\FORQHV DQG %HQJDO QDUURZV WRZDUGV WKH QRUWK ZKHUH

%DQJODGHVK LV ORFDWHG 6HH 0DS  ² F\FORQH
VWRUPVXUJHV
$VHYHUHWURSLFDOF\FORQHKLWV%DQJODGHVKRQ
DYHUDJH HYHU\  \HDUV 7KHVH VWRUPV JHQHUDOO\
IRUP LQ WKH PRQWKV MXVW EHIRUH DQG DIWHU WKH
PRQVRRQDQGLQWHQVLI\DVWKH\PRYHQRUWKRYHU
WKHZDUPZDWHUVRIWKH%D\RI%HQJDO7KH\DUH
DFFRPSDQLHGE\KLJKZLQGVRIRYHUNSKDQG
WUDFNV,QUHFHQW\HDUVJHQHUDOF\FORQLFDFWLYLW\
LQWKH%D\RI%HQJDOKDVEHFRPHPRUHIUHTXHQW
FDXVLQJURXJKHUVHDVWKDWFDQPDNHLWGLIILFXOWIRU
ILVKHUPHQDQGVPDOOFUDIWWRSXWWRVHD
 %DQJODGHVK KDV D ZRUOGUHQRZQHG
FRPPXQLW\EDVHG HDUO\ ZDUQLQJ V\VWHP DQG KDV
EXLOWF\FORQHVKHOWHUVRQVWLOWVVRWKDWWKHVWRUP
FDQ UHVXOW LQ VWRUP VXUJHV XS WR VHYHQ PHWUHV
KLJK UHVXOWLQJ LQ H[WHQVLYH GDPDJH WR KRXVHV
DQGKLJKORVVRIOLIHWRKXPDQVDQGOLYHVWRFNLQ
FRDVWDO FRPPXQLWLHV 7KH WURSLFDO F\FORQHV LQ
 DQG  DUH HVWLPDWHG WR KDYH NLOOHG
 DQG  SHRSOH UHVSHFWLYHO\ 7KH
VWRUP VXUJHV DUH KLJKHU LQ %DQJODGHVK WKDQ
LQQHLJKERXULQJFRXQWULHVEHFDXVHWKH%D\RI
VXUJH FDQ IORZ XQGHUQHDWK VHH %R[  7KHVH
VKHOWHUV W\SLFDOO\ SURYLGH UHIXJH WR RYHU 
SHRSOHDQGKDYHVHSDUDWHVSDFHVIRUZRPHQDQG
PHQ+RZHYHUSHRSOHDUHRIWHQUHOXFWDQWWRJR
WRWKHVKHOWHUVOHDYLQJWKHLUOLYHVWRFNDQGRWKHU
DVVHWVEHKLQG

0DS 7UDFNV RI F\FORQHV RYHU ODVW  \HDUV

7UDFNV RI &\FORQHV

6RXUFH &(*,6 'KDND

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

%R[  0XOWLSXUSRVH F\FORQH VKHOWHUV LQ FRDVWDO %DQJODGHVK

7KHVRXWKHUQGLVWULFWVRI%DQJODGHVKDORQJWKH%D\RI%HQJDODUHSURQHWRVHYHUHWURSLFDOVWRUPV
NQRZQDVF\FORQHVZKLFKGHYHORSRYHUZDUPWURSLFDORFHDQVDQGKDYHVXVWDLQHGZLQGVRI
NQRWVPLOHVKRXURUPRUH,QDGGLWLRQWRVWURQJZLQGVF\FORQHVDOVRJHQHUDWHVWRUPVXUJHV
DQGKXJHZDYHV:DWHUFDQULVHDVKLJKDVVHYHQPHWUHVDQGIORRGZDYHVFDQWUDYHOXSWRPLOHV
LQODQG,QRUGHUWRSURWHFWSHRSOHIURPVHYHUHVWRUPVDQGWLGDOVXUJHVPRUHWKDQF\FORQH
VKHOWHUVKDYHEHHQEXLOWLQWKHFRDVWDOGLVWULFWV&RQVWUXFWLRQRIF\FORQHVKHOWHUVLVRQHRIVL[NH\
PLWLJDWLQJPHDVXUHVDORQJZLWKHPEDQNPHQWVDIIRUHVWDWLRQHDUO\ZDUQLQJV\VWHPVDZDUHQHVV
EXLOGLQJDQGFRPPXQLFDWLRQV

$W\SLFDOVKHOWHULVDFRQFUHWHEXLOGLQJVKDSHGOLNHWZRVLGHVRIDWULDQJOHIDFLQJLQWRWKHZLQG
7RHQWHUSHRSOHFOLPEWKHVWDLUFDVHDWWKHEDFNDVLWLVVOLJKWO\PRUHVKHOWHUHGIURPWKHZLQG
5DLOLQJV DUH SODFHG RQ ERWK VLGHV RI WKH VWDLUFDVH WR KHOS SHRSOH FOLPE ZKHQ ZLQGV DUH YHU\
VWURQJ &\FORQH VKHOWHUV FDQ KDYH RQH RU WZR IORRUV 7KHUH DUH VHSDUDWH URRPV IRU PHQ DQG
ZRPHQFKLOGUHQXVXDOO\VWD\ZLWKWKHZRPHQ:LQGRZVKDYHPHWDOVKXWWHUVDVJODVVFDQEUHDN
LQWR SLHFHV DQG FDXVH LQMXULHV 7KHUH DUH ZDWHU VXSSO\ DQG WRLOHWV GRZQVWDLUV RU FORVH WR WKH
EXLOGLQJ

6RPHWRSHRSOHFDQWDNHUHIXJHLQDW\SLFDOVKHOWHUZKLFKPD\FRVWDURXQG…WR
EXLOG/DUJHUVKHOWHUVFDQDFFRPPRGDWHXSWRSHRSOHDQGPD\KDYHDGLIIHUHQWGHVLJQ

(DUOLHUVKHOWHUVZHUHEXLOWDVVLQJOHSXUSRVHVWUXFWXUHVEXWQHZRQHVDUHPXOWLSXUSRVH7KH\FDQ
DOVREHXVHGDVORFDOJRYHUQPHQWRIILFHVVFKRROVRUKHDOWKFHQWUHV1HZHUVKHOWHUVPD\KDYHD

NLOOD
UDLVHGSODWIRUPIRUOLYHVWRFNQHDUE\

$FFRUGLQJWRDJRYHUQPHQWHVWLPDWHVDURXQGPLOOLRQSHRSOHWRRNUHIXJHLQF\FORQHVKHOWHUV
ZKHQ&\FORQH6LGUKLWWKHFRDVWRI%DQJODGHVKLQ1RYHPEHU

,QF\FORQHVKHOWHUVDQGWKHYHU\HIIHFWLYHHDUO\ZDUQLQJV\VWHPKHOSHGOLPLWWKHQXPEHU
RIIDWDOLWLHVWRDURXQG7KLVLVVWLOOWRRPDQ\EXWDVPDOOIUDFWLRQRIWKHORVVLQFXUUHG
LQZKHQVRPHOLYHVZHUHORVWGXHWRWKHOHVVHIIHFWLYHHDUO\ZDUQLQJV\VWHPDQG
ODFN RI VKHOWHUV 7KH PXOWLSXUSRVH F\FORQH VKHOWHU LV D FRQFUHWH H[DPSOH RI LQGLJHQRXV
DGDSWDWLRQWRH[WUHPHFOLPDWLFHYHQWVLQ%DQJODGHVK

3KRWR $ PXOWLSXUSRVH F\FORQH VKHOWHU 6RXUFH , 0 )DLVDO DQG KWWSZZZXZHFHGX SKRWRJUDSK

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

'URXJKWV
'URXJKWVLQ%DQJODGHVKDUHVHDVRQDODQGFDQ
GHYDVWDWH FURSV FDXVLQJ KDUGVKLS WR SRRU
DJULFXOWXUDO ODERXUHUV DQG RWKHUV ZKR FDQQRW
ILQGZRUN,QWKHVHDUHDVPRQJDXQHPSOR\PHQW
OHDGLQJWRVHDVRQDOKXQJHULVRIWHQDSUREOHP
HVSHFLDOO\ LQ WKH PRQWKV OHDGLQJ XS WR WKH
1RYHPEHU'HFHPEHU ULFH KDUYHVW ,I WKH FURS
WRWDOO\IDLOVEHFDXVHRIGURXJKWWKHVLWXDWLRQIRU
SRRUSHRSOHFDQEHFRPHFULWLFDO'URXJKWVPRVW
FRPPRQO\DIIHFWWKHQRUWKZHVWHUQUHJLRQZKLFK
JHQHUDOO\KDVORZHUUDLQIDOOWKDQWKHUHVWRIWKH
FRXQWU\

3KRWR 6HYHUH GURXJKW FRQGLWLRQ 6RXUFH $EX7DKHU.KRNRQ

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

,,,,03$&762)&/,0$7(
&+$1*(
&OLPDWHFKDQJHZLOOH[DFHUEDWHPDQ\RIWKH ‡ :DUPHUDQGPRUHKXPLGZHDWKHUOHDGLQJWR
FXUUHQWSUREOHPVDQGQDWXUDOKD]DUGVWKHFRXQ LQFUHDVHGSUHYDOHQFHRIGLVHDVHDQGGLVHDVH
WU\IDFHV,WLVDSSUHKHQGHGWKDWFOLPDWHFKDQJH YHFWRUV
ZLOOOHDGWR
 (DFK RI WKHVH FKDQJHV LV OLNHO\ WR VHULRXVO\
‡ LQFUHDVLQJO\ IUHTXHQW DQG VHYHUH WURSLFDO
F\FORQHV ZLWK KLJKHU ZLQG VSHHGV DQG
VWRUPVXUJHVOHDGLQJWRPRUHGDPDJHLQWKH
FRDVWDOUHJLRQ
‡ KHDYLHU DQG PRUH HUUDWLF UDLQIDOO LQ WKH
*DQJHV%UDKPDSXWUD0HJKQD V\VWHP
LQFOXGLQJ %DQJODGHVK GXULQJ WKH PRQVRRQ
UHVXOWLQJLQ WRUHGXFHFURS\LHOGVDQGFURSSURGXFWLRQ,3&&
 KLJKHUULYHUIORZVFDXVLQJRYHUWRSSLQJ
DIIHFWDJULFXOWXUHFURSVOLYHVWRFNDQGILVKHULHV
$OWKRXJK DJULFXOWXUH QRZ DFFRXQWV IRU RQO\ 
RI*'3RYHURISHRSOHGHSHQGRQDJULFXOWXUH
GLUHFWO\ RU LQGLUHFWO\ IRU WKHLU OLYHOLKRRGV 7KH
KLJKHU WHPSHUDWXUHV DQG FKDQJLQJ UDLQIDOO
SDWWHUQVFRXSOHGZLWKLQFUHDVHGIORRGLQJULVLQJ
VDOLQLW\LQWKHFRDVWDOEHOWDQGGURXJKWVDUHOLNHO\
HVWLPDWHV WKDW E\  ULFH SURGXFWLRQ LQ
%DQJODGHVKFRXOGGHFOLQHE\DQGZKHDWE\
DQG EUHDFKLQJ RI HPEDQNPHQWV DQG
ZLGHVSUHDG IORRGLQJ LQ UXUDO DQG XUEDQ
DUHDV
 ULYHU EDQN HURVLRQ UHVXOWLQJ LQ ORVV RI
KRPHV DQG DJULFXOWXUDO ODQG WR WKH
ULYHUV QRUWKZHVW RI WKH FRXQWU\ 7KLV ZLOO LPSRVH
 LQFUHDVHG VHGLPHQWDWLRQ LQ ULYHUEHGV
OHDGLQJ WR GUDLQDJH FRQJHVWLRQ DQG
ZDWHUORJJLQJ IDPLOLHV ,QFUHDVLQJO\ VDOLQH GULQNLQJ ZDWHU PD\
‡ PHOWLQJRIWKH+LPDOD\DQJODFLHUVOHDGLQJ
WRKLJKHUULYHUIORZVLQWKHZDUPHUPRQWKV
RI WKH \HDU IROORZHG E\ ORZHU ULYHU IORZV
DQG LQFUHDVHG VDOLQH LQWUXVLRQ DIWHU WKH
JODFLHUVKDYHVKUXQNRUGLVDSSHDUHG
‡ ORZHU DQG PRUH HUUDWLF UDLQIDOO UHVXOWLQJ
LQ LQFUHDVLQJ GURXJKWV HVSHFLDOO\ LQ GULHU
QRUWKHUQDQGZHVWHUQUHJLRQVRIWKHFRXQWU\
‡ VHD OHYHO OHDGLQJ WR VXEPHUJHQFH RI ORZ
O\LQJFRDVWDODUHDVDQGVDOLQHZDWHULQWUXVLRQ
XS FRDVWDO ULYHUV DQG LQWR JURXQGZDWHU
DTXLIHUV UHGXFLQJ IUHVKZDWHU DYDLODELOLW\
GDPDJHWRWKH6XQGDUEDQVPDQJURYHIRUHVW
D:RUOG+HULWDJHVLWHZLWKULFKELRGLYHUVLW\
DQG GUDLQDJH FRQJHVWLRQ LQVLGH FRDVWDO
SROGHUV ZKLFK ZLOO DGYHUVHO\ DIIHFW
DJDLQVWDEDVH\HDURI
 6KRUWDJH RI VDIH GULQNLQJ ZDWHU LV OLNHO\ WR
EHFRPH PRUH SURQRXQFHG HVSHFLDOO\ LQ WKH
FRDVWDO EHOW DQG LQ GURXJKWSURQH DUHDV LQ WKH
KDUGVKLS RQ ZRPHQ DQG FKLOGUHQ ZKR DUH
UHVSRQVLEOHIRUFROOHFWLQJGULQNLQJZDWHUIRUWKHLU
DOVR UHVXOW LQ KHDOWK KD]DUGV HVSHFLDOO\ IRU
SUHJQDQW ZRPHQ &OLPDWH FKDQJH LV OLNHO\ WR
DGYHUVHO\DIIHFWZRPHQPRUHWKDQPHQ
,QFUHDVHGULYHUEDQNHURVLRQDQGVDOLQHZDWHU
LQWUXVLRQ LQ FRDVWDO DUHDV DUH OLNHO\ WR GLVSODFH
KXQGUHGV RI WKRXVDQGV RI SHRSOH ZKR ZLOO EH
IRUFHG WR PLJUDWH RIWHQ WR VOXPV LQ 'KDND DQG
RWKHU ELJ FLWLHV ,I VHD OHYHO ULVH LV KLJKHU WKDQ
FXUUHQWO\ H[SHFWHG DQG FRDVWDO SROGHUV DUH QRW
VWUHQJWKHQHGDQGRUQHZRQHVEXLOWVL[WRHLJKW
PLOOLRQ SHRSOH FRXOG EH GLVSODFHG E\  DQG
ZRXOGKDYHWREHUHVHWWOHG
DJULFXOWXUHVHH0DS
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

0DS/LNHO\VDOLQLW\LQJUHVVLQ6RXWKHUQ%DQJODGHVKGXHWRGLIIHUHQW6/5

6RXUFH &(*,6 'KDND

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

 $OO RI WKHVH FKDQJHV WKUHDWHQ WKH IRRG 8QOHVVWKHVHVWHSVDUHWDNHQWKHKHDOWKRIPDQ\

VHFXULW\ OLYHOLKRRGV DQG KHDOWK RI WKH SRRU RI WKH SRRUHVW DQG PRVW YXOQHUDEOH SHRSOH ZLOO
3HRSOH OLYLQJ RQ ULYHU LVODQGV FKDUV DQG DORQJ GHWHULRUDWH$FXWHLOOQHVVLVNQRZQWREHRQHRI
WKHFRDVWOLQHHJILVKLQJIDPLOLHVDUHDPRQJ
WKHSRRUHVWSHRSOHLQWKHFRXQWU\7KH\ZLOOEH
VHULRXVO\DIIHFWHGDVZLOORWKHUVZKRORVHWKHLU
ODQGWRULYHUHURVLRQ([WUHPHO\SRRUKRXVHKROGV
WKURXJKRXW WKH FRXQWU\ LQFOXGLQJ PDQ\
IHPDOHKHDGHGKRXVHKROGVZLOOVXIIHUPRVWIURP
FOLPDWHFKDQJH
 &OLPDWH FKDQJH LV OLNHO\ WR LQFUHDVH WKH
LQFLGHQFHRIZDWHUERUQHDQGDLUERUQHGLVHDVHV
%DFWHULD SDUDVLWHV DQG GLVHDVH YHFWRUV EUHHG
IDVWHU LQ ZDUPHU DQG ZHWWHU FRQGLWLRQV DQG
ZKHUH WKHUH LV SRRU GUDLQDJH DQG VDQLWDWLRQ ,Q
YLHZ RI WKLV LW ZLOO EH LPSRUWDQW WR LPSOHPHQW
SXEOLFKHDOWKPHDVXUHVLPPXQL]DWLRQLPSURYHG
WKH PDLQ WULJJHUV GULYLQJ SHRSOH LQWR H[WUHPH
SRYHUW\DQGGHVWLWXWLRQLQ%DQJODGHVK
%DQJODGHVKKDVRQHRIWKHKLJKHVWSRSXODWLRQ
GHQVLWLHVRIDQ\FRXQWU\LQWKHZRUOG%\
WKH SRSXODWLRQ ZLOO KDYH JURZQ IURP
DSSUR[LPDWHO\PLOOLRQLQWRPRUHWKDQ
PLOOLRQZLWKDOPRVWKDOIRIWKHSHRSOHOLYLQJ
LQ FLWLHV DQG WRZQV 'KDND ZLOO KDYH EHFRPH D
PHJD FLW\ ZLWK D SRSXODWLRQ RI RYHU  PLOOLRQ
7KH LPSDFW RI KLJKHU DQG PRUH LQWHQVH UDLQIDOO
ZLOO EH IHOW LQ XUEDQ DUHDV ZKHUH GUDLQDJH LV
DOUHDG\DVHULRXVSUREOHPDQGVHZHUVIUHTXHQWO\
EDFNXS LQ WKH PRQVRRQ VHDVRQ 7KH SRRU ZKR
OLYH LQ VOXPV DQG LQIRUPDO VHWWOHPHQWV RIWHQ LQ
GUDLQDJHVDQLWDWLRQDQGK\JLHQHWRUHGXFHWKH ORZO\LQJSDUWVRIFLWLHVZLOOEHZRUVWDIIHFWHG
VSUHDG RI WKHVH GLVHDVHV DQG WR LPSURYH DFFHVV :LWK UDSLG DQG XQSODQQHG XUEDQL]DWLRQ LQ
WRKHDOWKVHUYLFHVIRUWKRVHFRPPXQLWLHVOLNHO\WR %DQJODGHVKWKLVLVJRLQJWREHFRPHDQHYHQPRUH
EHZRUVWDIIHFWHGE\FOLPDWHFKDQJH XUJHQWDQGSUHVVLQJSUREOHP

3KRWR )ORRG LQ DQ XUEDQ DUHD 6RXUFH ZZZSRIIHWQHW

 ,Q   PLOOLRQ SHRSOH OLYHG LQ DQ DUHD RI  NP DW D GHQVLW\ RI RYHU  SHUVRQVNP 
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

,WKDVEHHQHVWLPDWHGWKDWWKHUHLVWKHLPSHQGLQJ PD\ EH KDSSHQLQJ DOUHDG\ ZLWK &\FORQH 6LGU LQ

WKUHDW RI GLVSODFHPHQW RI PRUH WKDQ  PLOOLRQ %DQJODGHVK DQG &\FORQH 1DUJLV LQ 0\DQPDU
SHRSOH LQ WKH HYHQW RI VHDOHYHO FKDQJH DQG KDSSHQLQJ ZLWKLQ VL[ PRQWKV RI HDFK RWKHU
UHVXOWLQJLQFUHDVHLQVDOLQLW\FRXSOHGZLWKLPSDFW 2WKHUFKDQJHVVXFKDVVHDOHYHOULVHDUHOLNHO\WR
RILQFUHDVHLQF\FORQHVDQGVWRUPVXUJHVLQWKH EHVHHQRQO\DIWHU\HDUVSRVVLEO\ORQJHU
QHDU IXWXUH 7KH VHWWOHPHQW RI WKHVH
HQYLURQPHQWDO UHIXJHHV ZLOO SRVH D VHULRXV
SUREOHP IRU WKH GHQVHO\ SRSXODWHG %DQJODGHVK
DQG PLJUDWLRQ PXVW EH FRQVLGHUHG DV D YDOLG
RSWLRQ IRU WKH FRXQWU\ 3UHSDUDWLRQV LQ WKH
PHDQWLPH ZLOO EH PDGH WR FRQYHUW WKLV
SRSXODWLRQ LQWR WUDLQHG DQG XVHIXO FLWL]HQV IRU
DQ\FRXQWU\

$OWKRXJKWKHUHLVVRPHXQFHUWDLQW\DERXWWKH
,3&& IRUHFDVWV RQ WKH WLPLQJ DQG VHYHULW\ RI
WKHVH LPSDFWV WKH GLUHFWLRQV RI FKDQJH DUH
FOHDU &KDQJHV LQ UDLQIDOO SDWWHUQV DQG LQ WKH
IUHTXHQF\ DQGVHYHULW\RIWURSLFDOF\FORQHVDQG
VWRUP VXUJHV DUH OLNHO\ WR KDSSHQ TXLFNO\ DQG

3KRWR 'HYDVWDWLRQ E\ 6,'5DF\FORQHWKDWKDGKLWWKH6XQGDUEDQVLQ1RYHPEHU 6RXUFH $ULIXU5DKPDQ0XQLU

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1
,9$'$37,1*72&/,0$7(
&+$1*(
7KHSHRSOHRI%DQJODGHVKKDYHDGDSWHGRYHU
JHQHUDWLRQVWRWKHULVNVRIIORRGVGURXJKWVDQG
F\FORQHV ,Q DUHDV ZKHUH LQXQGDWLRQ LV D ULVN
WKH\ UDLVH WKHLU KRXVHV RQ PRXQGV DERYH WKH
QRUPDO IORRG OHYHO DQG DGMXVW WKHLU FURSSLQJ
SDWWHUQVWRWDNHDGYDQWDJHRIWKHIORRGZDWHUV
)DUPHUVLQDOOSDUWVRIWKHFRXQWU\DGDSWWRORFDO
IORRGLQJDQGUDLQIDOOSDWWHUQVE\JURZLQJDUDQJH
RILQGLJHQRXVDQGKLJK\LHOGLQJYDULHWLHVRIULFH
DQG RWKHU FURSV 5XUDO URDGV SDWKV WUDFNV DQG
RWKHU LQIUDVWUXFWXUH VXFK DV VFKRROV DUH DOVR
UDLVHGDERYHIORRGOHYHOZKHUHSRVVLEOH
 7KH FRPELQDWLRQ RI IUHTXHQW QDWXUDO GLVDV
WHUVKLJKSRSXODWLRQGHQVLW\SRRULQIUDVWUXFWXUH
DQG ORZ UHVLOLHQFH WR HFRQRPLF VKRFNV PDNHV
%DQJODGHVK HVSHFLDOO\ YXOQHUDEOH WR FOLPDWLF
ULVNV 7KH KLJK LQFLGHQFH RI SRYHUW\ DQG KHDY\
UHOLDQFHRISRRUSHRSOHRQDJULFXOWXUHDQGQDWX
UDO UHVRXUFHV LQFUHDVHV WKHLU YXOQHUDELOLW\ WR
FOLPDWHFKDQJH
6XSSRUWLQJFRPPXQLWLHVDQGSHRSOHLQUXUDO
DUHDVWRVWUHQJWKHQWKHLUUHVLOLHQFHDQGDGDSWWR
FOLPDWH FKDQJH ZLOO UHPDLQ D KLJK SULRULW\ LQ
FRPLQJ GHFDGHV +RZHYHU ZLWK LQFUHDVLQJ
XUEDQLVDWLRQ DQG HFRQRPLF JURZWK WKH W\SH RI
ULVNV %DQJODGHVK IDFHV ZLOO FKDQJH 1HZ XUEDQ
DUHDVPXVWEHEXLOWWREHFOLPDWHUHVLOLHQW7KLV
ZLOO FDOO IRU EHWWHU SODQQLQJ WR HQVXUH WKDW WKH
SDWWHUQ RI XUEDQLVDWLRQ WDNHV DFFRXQW RI WKH
OLNHO\ULVNVIURPFOLPDWHFKDQJH
 7KH GLUHFW DQQXDO FRVW WR WKH QDWLRQDO
HFRQRP\ RI QDWXUDO GLVDVWHUV RYHU WKH ODVW 
 6LQFH WKH V WKH *RYHUQPHQW RI
%DQJODGHVK ZLWK WKH VXSSRUW RI GHYHORSPHQW
SDUWQHUVKDVLQYHVWHGLQ
„  IORRG PDQDJHPHQW VFKHPHV WR UDLVH WKH
DJULFXOWXUDOSURGXFWLYLW\RIPDQ\WKRXVDQGV
RI NP RI ORZO\LQJ UXUDO DUHDV DQG WR
SURWHFW WKHP IURP H[WUHPHO\ GDPDJLQJ
VHYHUHIORRGV

„  IORRG SURWHFWLRQ DQG GUDLQDJH VFKHPHV WR
SURWHFW XUEDQ DUHDV IURP UDLQZDWHU DQG
ULYHUIORRGLQJGXULQJWKHPRQVRRQVHDVRQ
„  FRDVWDO HPEDQNPHQW SURMHFWV LQYROYLQJ
RYHU  NP RI HPEDQNPHQWV DQG SROGHU
VFKHPHV GHVLJQHG WR UDLVH DJULFXOWXUDO
SURGXFWLYLW\ LQ FRDVWDO DUHDV E\ SUHYHQWLQJ
WLGDOIORRGLQJDQGLQFXUVLRQRIVDOLQHZDWHU
„   RYHU  F\FORQH VKHOWHUV WR SURYLGH
UHIXJHV IRU FRPPXQLWLHV IURP VWRUP VXUJHV
FDXVHGE\WURSLFDOF\FORQHVDQGVKHOWHUV
IURPULYHUIORRGV
„   FRPSUHKHQVLYH GLVDVWHU PDQDJHPHQW
SURMHFWV LQYROYLQJ FRPPXQLW\EDVHG
SURJUDPPHV DQG HDUO\ ZDUQLQJ V\VWHPV IRU
IORRGVDQGF\FORQHV

„   LUULJDWLRQ VFKHPHV WR HQDEOH IDUPHUV WR
JURZDGU\VHDVRQULFHFURSLQDUHDVVXEMHFW
WR KHDY\ PRQVRRQ IORRGLQJ DQG LQ RWKHU
SDUWV RI WKH FRXQWU\ LQFOXGLQJ
GURXJKWSURQHDUHDV
\HDUVGDPDJHDQGORVWSURGXFWLRQLVHVWLPDWHG
WR EH EHWZHHQ  DQG  RI *'3 $V WKH
HFRQRP\JURZVWKHVHFRVWVDUHOLNHO\WRLQFUHDVH
LQDEVROXWHWHUPVDQGDVDSURSRUWLRQRI*'3LI
FOLPDWH FKDQJH LV QRW IDFWRUHG LQWR ORQJWHUP
HFRQRPLFSODQQLQJ
„  DJULFXOWXUDO UHVHDUFK SURJUDPPHV WR
GHYHORS VDOLQH GURXJKW DQG IORRGDGDSWHG
KLJK \LHOGLQJ YDULHWLHV RI ULFH DQG RWKHU
FURSV EDVHG RQ WKH WUDGLWLRQDO YDULHWLHV
HYROYHG RYHU FHQWXULHV E\ %DQJODGHVKL
IDUPHUV
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

„ FRDVWDO
JUHHQEHOW
 SURMHFWV LQYROYLQJ  7KH PDLQ PLQLVWULHV RI WKH *RYHUQPHQW RI
PDQJURYHSODQWLQJDORQJQHDUO\NPRI %DQJODGHVK LQYROYHG LQ FOLPDWH FKDQJH DUH WKH
WKHVKRUHOLQH 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV DQG LWV
DJHQFLHVHJWKH'HSDUWPHQWRI(QYLURQPHQW²
 7KHVH LQYHVWPHQWV LQ
FOLPDWH SURRILQJ
 WKH 'R(DQG'HSDUWPHQWRI)RUHVWV²'R))RRGDQG
FRXQWU\ KDYH KDG D PDMRU LPSDFW RQ HFRQRPLF 'LVDVWHU 0DQDJHPHQW 0R)'0 ZKLFK LQFOXGHV
JURZWK DQG SRYHUW\ UHGXFWLRQ $YHUDJH DQQXDO WKH 'LVDVWHU 0DQDJHPHQW %XUHDX '0% DQG WKH
IRRG JUDLQ SURGXFWLRQ LQ %DQJODGHVK KDV JURZQ &RPSUHKHQVLYH'LVDVWHU0DQDJHPHQW3URJUDPPH
IURPDERXWPLOOLRQLQWKHPLG
VWRPLOOLRQ &'03 :DWHU 5HVRXUFHV ZKLFK LQFOXGHV WKH
PHWULF WRQHV WRGD\ ZKLFK KDV UDLVHG UXUDO %DQJODGHVK:DWHU'HYHORSPHQW%RDUGDQGRWKHU
LQFRPHV DQG FUHDWHG MREV IRU SRRU SHRSOH LQ UHVHDUFK DQG IRUHFDVWLQJ RUJDQLVDWLRQV /RFDO
DJULFXOWXUH DQG UHODWHG VHFWRUV DQG PDGH WKH *RYHUQPHQW 5XUDO 'HYHORSPHQW DQG
FRXQWU\ODUJHO\IRRGVHFXUH2YHUWKHODVW &RRSHUDWLYHV ZKLFK LQFOXGHV WKH /RFDO
\HDUV WKH QXPEHU RI IDWDOLWLHV IURP QDWXUDO *RYHUQPHQW(QJLQHHULQJ'HSDUWPHQW/*('DQG
GLVDVWHUVKDVGHFOLQHGDVWKHFRXQWU\
VDELOLW\WR WKH 'HSDUWPHQW RI 3XEOLF +HDOWK (QJLQHHULQJ
PDQDJHULVNVHVSHFLDOO\IORRGVDQGF\FORQHVKDV
LPSURYHG DQG FRPPXQLW\EDVHG V\VWHPV KDYH
EHHQSXWLQSODFH
  2YHU WKH GHFDGHV %DQJODGHVK KDV DOVR
OHDUQW KRZ WR SODQ DQG LPSOHPHQW WKHVH
SURJUDPPHVPRUHVXVWDLQDEO\HJWRLQWHJUDWH
FDSWXUHDQGFXOWXUHILVKHULHVLQWRWKHGHVLJQDQG
'3+( $JULFXOWXUH LQFOXGLQJ WKH 1DWLRQDO
$JULFXOWXUDO 5HVHDUFK 6\VWHP ZKLFK GHYHORSV
QHZ FURSV DQG SUDFWLFHV VXLWHG WR GLIIHUHQW
FOLPDWLF DQG VDOLQLW\ FRQGLWLRQV LQ WKH FRXQWU\
/LYHVWRFN DQG )LVKHULHV 3RZHU (QHUJ\ DQG
0LQHUDO 5HVRXUFHV +HDOWK DQG )DPLO\ :HOIDUH
5RDGV DQG 5DLOZD\ 'LYLVLRQ 0LQLVWU\ RI
&RPPXQLFDWLRQ 0LQLVWU\ RI )RUHLJQ $IIDLUV DQG
RSHUDWLRQ RI IORRG PDQDJHPHQW SURMHFWV E\
LQYROYLQJFRPPXQLWLHVLQSODQQLQJFRQVWUXFWLRQ
DQG PDQDJHPHQW :H PXVW XQGHUWDNH FOLPDWH
FKDQJH LQYHVWPHQWV ZLWK FRPPXQLWLHV OHDUQ
IURP WKHP EXLOG RQ WKHLU NQRZOHGJH RI WKHLU
ORFDO HQYLURQPHQWV DQG HQVXUH WKDW SURSRVHG
LQYHVWPHQWVPHHWWKHLUQHHGV
WKH 3ODQQLQJ &RPPLVVLRQ ZKLFK LV FKDUJHG ZLWK
WKH IUDPLQJ RI GHYHORSPHQW SODQV DV ZHOO DV
DSSURYDORISURJUDPPHVDQGSURMHFWV.H\UROHV
DQG UHVSRQVLELOLWLHV RI VRPH RI WKHVH
RUJDQL]DWLRQVDUHGHVFULEHGLQ%R[

 7KH *RYHUQPHQW RI %DQJODGHVK UHFRJQLVHV

WKDW WDFNOLQJ FOLPDWH FKDQJH UHTXLUHV DQ
LQWHJUDWHG DSSURDFK LQYROYLQJ PDQ\ GLIIHUHQW
PLQLVWULHV DQG DJHQFLHV FLYLO VRFLHW\ DQG WKH
EXVLQHVV VHFWRU 7KHUH LV DOVR D QHHG WR
VWUHQJWKHQ WKH FDSDFLW\ RI *RYHUQPHQW DQG
RWKHU RUJDQLVDWLRQV WR SODQ DQG LPSOHPHQW
GHYHORSPHQW SURJUDPPHV 0DQ\ GHYHORSPHQW
RUJDQLVDWLRQV QHHG WR VWUHQJWKHQ WKHLU FDSDFLW\
VR WKDW WKH\ FDQ LPSOHPHQW WKHLU UHJXODU
SURJUDPPHV PRUH HIIHFWLYHO\ DQG ULVH WR WKH
FKDOOHQJHRIFOLPDWHFKDQJH
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

%R[  *RYHUQPHQW 0LQLVWULHV DQG $JHQFLHV LQYROYHG LQ UHVSRQGLQJ WR FOLPDWH FKDQJH

7KH 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV LV WKH IRFDO PLQLVWU\ IRU DOO ZRUN RQ FOLPDWH FKDQJH LQFOXGLQJ
LQWHUQDWLRQDOQHJRWLDWLRQV,WSURYLGHVWKH8QLWIRUWKH1DWLRQDO(QYLURQPHQW&RPPLWWHHZKLFKHQVXUHV
DVWUDWHJLFRYHUYLHZRIHQYLURQPHQWDOLVVXHVDQGLVFKDLUHGE\WKH3ULPH0LQLVWHU,PPHGLDWHO\DIWHUWKH
%DOL&RQIHUHQFH&23WKH*RYHUQPHQWIRUPHGWKH1DWLRQDO6WHHULQJ&RPPLWWHHRQ&OLPDWH&KDQJH
,WLVKHDGHGE\WKH0LQLVWHUWKHPLQLVWU\RI(QYLURQPHQWDQG)RUHVWVDQGFRPSULVHVVHFUHWDULHVRIDOO
UHOHYDQW PLQLVWULHV DQG FLYLO VRFLHW\ UHSUHVHQWDWLYHV ,W LV WDVNHG ZLWK GHYHORSLQJ DQG RYHUVHHLQJ
LPSOHPHQWDWLRQRIWKH1DWLRQDO&OLPDWH&KDQJH6WUDWHJ\DQG$FWLRQ3ODQ)LYHWHFKQLFDOZRUNLQJJURXSV
ZHUHDOVRFRQVWLWXWHGRQDGDSWDWLRQPLWLJDWLRQWHFKQRORJ\WUDQVIHUILQDQFLQJDQGSXEOLFDZDUHQHVV

,QWKH*RYHUQPHQWRI%DQJODGHVKODXQFKHGLWV1DWLRQDO$GDSWDWLRQ3URJUDPPHRI$FWLRQ1$3$LQ

SDUWQHUVKLSZLWKRWKHUVWDNHKROGHUVZKLFKKLJKOLJKWVWKHPDLQDGYHUVHHIIHFWVRIFOLPDWHFKDQJHDQG
LGHQWLILHVDGDSWDWLRQQHHGV7KHSURSRVHG&OLPDWH&KDQJH8QLWXQGHUWKH0LQLVWU\RI(QYLURQPHQWDQG
)RUHVWVLVH[SHFWHGWREHWDVNHGZLWKWKHPDLQVWUHDPLQJRIFOLPDWHFKDQJHLQWRQDWLRQDOGHYHORSPHQW
SODQQLQJDORQJZLWKWKH&OLPDWH&KDQJH)RFDO3RLQWVLQYDULRXVPLQLVWULHV

7KH1DWLRQDO'LVDVWHU0DQDJHPHQW&RXQFLO1'0&KHDGHGE\WKH3ULPH0LQLVWHULVWKHKLJKHVWOHYHO

IRUXP IRU WKH IRUPXODWLRQ DQG UHYLHZ RI GLVDVWHU PDQDJHPHQW SROLFLHV 7KH ,QWHU0LQLVWHULDO 'LVDVWHU
0DQDJHPHQW&RRUGLQDWLRQ&RPPLWWHHLVLQFKDUJHRILPSOHPHQWLQJGLVDVWHUPDQDJHPHQWSROLFLHVDQGWKH
GHFLVLRQVRIWKH1'0&DVVLVWHGE\WKH1DWLRQDO'LVDVWHU0DQDJHPHQW$GYLVRU\&RPPLWWHH

7KH0LQLVWU\RI)RRGDQG'LVDVWHU0DQDJHPHQWLVWKHIRFDOPLQLVWU\IRUGLVDVWHUPDQDJHPHQW,WV'LVDVWHU
0DQDJHPHQW %XUHDX '0% LV WKH DSH[ RUJDQL]DWLRQ UHVSRQVLEOH IRU FRRUGLQDWLQJ QDWLRQDO GLVDVWHU
PDQDJHPHQWLQWHUYHQWLRQVDFURVVDOODJHQFLHV,WLVDWHFKQLFDODUPRIWKH0LQLVWU\RI)RRGDQG'LVDVWHU
0DQDJHPHQW,WRYHUVHHVDQGFRRUGLQDWHVDOODFWLYLWLHVUHODWHGWRGLVDVWHUPDQDJHPHQWDWQDWLRQDODQG
ORFDOOHYHOV,QWKH*RYHUQPHQWSXEOLVKHG6WDQGLQJRUGHUVRQ'LVDVWHUZKLFKSURYLGHDGHWDLOHG
LQVWLWXWLRQDOIUDPHZRUNIRUGLVDVWHUULVNUHGXFWLRQDQGHPHUJHQF\PDQDJHPHQWDQGGHILQHVWKHUROHVDQG
UHVSRQVLELOLWLHVRIGLIIHUHQWDFWRUV7KH&RPSUHKHQVLYH'LVDVWHU0DQDJHPHQW3URJUDPPH&'03DGRQRU
IXQGHG SURJUDPPH DLPV WR VWUHQJWKHQ WKH '0% DQG VKLIWV WKH HPSKDVLV DZD\ IURP UHOLHI WR GLVDVWHU
SUHSDUHGQHVVDQGULVNUHGXFWLRQ

7KH0HWHRURORJLFDO'HSDUWPHQWDQG63$5562XQGHUWKH0LQLVWU\RI'HIHQVHDQGWKH)ORRG)RUHFDVW
LQJ DQG (DUO\ :DUQLQJ &HQWUH %DQJODGHVK :DWHU 'HYHORSPHQW %RDUG XQGHU WKH 0LQLVWU\ RI :DWHU
5HVRXUFHVDUHWZRRIWKHNH\LQVWLWXWLRQVLQWKLVILHOG

7KH 3ODQQLQJ &RPPLVVLRQ EHLQJ WKH ILQDO DSSURYLQJ DXWKRULW\ XQGHU WKH 0LQLVWU\ RI 3ODQQLQJ ZKLFK LV
SUHSDULQJWKH6L[WK)LYH<HDU3ODQZLOOORRNLQWRWKHRYHUDOOLQWHJUDWLRQRIFOLPDWHFKDQJHLVVXHVZLWKLQ
WKHSODQQLQJIUDPHZRUNDVZHOODVEHWKHILQDODSSURYLQJDXWKRULW\IRUSURJUDPPHVDQGSURMHFWVWREH
FDUULHGRXWDVSDUWRIWKHLPSOHPHQWDWLRQRIWKH$FWLRQ3ODQ

2WKHU0LQLVWULHV7KHUHDUHRUPRUHRWKHUPLQLVWULHVDOVRUHVSRQVLEOHIRUVHFWRUVWKDWDUHYXOQHUDEOHWR
WKHHIIHFWVRIFOLPDWHFKDQJHLQFOXGLQJDJHQFLHVUHVSRQVLEOHIRUZDWHUUHVRXUFHVKHDOWKDJULFXOWXUH
XUEDQSODQQLQJURDGVDQGWUDQVSRUW
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

 %DQJODGHVK KDV D ODUJH DQG YLEUDQW FLYLO

VRFLHW\ VHFWRU ZKLFK LQFOXGHV ZRUOGUHQRZQHG
RUJDQL]DWLRQVOLNH%5$&DQGWKH*UDPHHQ%DQN
&LYLO VRFLHW\ KDV PDGH D PDMRU FRQWULEXWLRQ WR
SRYHUW\ UHGXFWLRQ DQG KDV LQFUHDVHG WKH
UHVLOLHQFH RI SRRU SHRSOH WR QDWXUDO GLVDVWHUV
WKURXJK LWV PLFURILQDQFH LQFRPH JHQHUDWLRQ
KHDOWKDQGHGXFDWLRQSURJUDPPHV&LYLOVRFLHW\
V
H[SHULHQFHDQGFDSDFLW\ZLOOEHXVHGWRGHYHORS
LQQRYDWLYH DSSURDFKHV WR DGDSWDWLRQ LQFOXGLQJ
SRVVLEOHSDUWQHUVKLSVZLWKWKHSULYDWHVHFWRU

%DQJODGHVKKDVSLRQHHUHGFRPPXQLW\EDVHG
DSSURDFKHV WR UHGXFLQJ YXOQHUDELOLW\ WR FOLPDWH
FKDQJH ZKLFK DUH EHLQJ VKDUHG ZLWK RWKHU
GHYHORSLQJFRXQWULHV6HH%R[

 7KH *RYHUQPHQW RI %DQJODGHVK KDV PDGH

FOLPDWH FKDQJH DQ LQWHJUDO SDUW RI WKH 3RYHUW\
5HGXFWLRQ 6WUDWHJ\ 3DSHU FXUUHQWO\ XQGHU
UHYLHZZKLFKRXWOLQHVLWVVWUDWHJ\IRUWKHQH[W
WKUHH\HDUVDQGZKLFKZLOOOD\WKHIRXQGDWLRQIRU
FRQWLQXLQJHIIRUWVWRDFKLHYHWKH0'*VDQGEXLOG
DIDLUHTXLWDEOHDQGMXVWVRFLHW\LQ%DQJODGHVK
'HVSLWHSDVWHIIRUWVWKHFRXQWU\KDVDORQJZD\
WR JR WR HUDGLFDWH SRYHUW\ DQG SURYLGH
RSSRUWXQLWLHVIRUDOOWKHSHRSOH6RPHPLOOLRQ
SHRSOHVWLOOOLYHLQSRYHUW\PLOOLRQRIWKHPLQ
H[WUHPH SRYHUW\  SHUFHQW RI KRXVHKROGV
ODFNDFFHVVWRVDQLWDWLRQDWPRVWSHUFHQWRI
FKLOGUHQFRPSOHWHSULPDU\VFKRRODQGWKHROG
GLVDEOHG DQG YXOQHUDEOH SHRSOH ODFN DGHTXDWH
VRFLDO SURWHFWLRQ VHUYLFHV 7KH FXUUHQW 3563
ZKLFK LV QRZ EHLQJ UHYLVHG KLJKOLJKWV WKH OLNHO\
LPSDFWV RI FOLPDWH FKDQJH RQ WKH GHYHORSPHQW
RI%DQJODGHVKDQGWKHLPSRUWDQFHRISXWWLQJLQ
SODFHDIUDPHZRUNIRUDFWLRQDVDQLQWHJUDOSDUW
RIWKHFRXQWU\
V3RYHUW\5HGXFWLRQ6WUDWHJ\

 %DQJODGHVK %XUHDX RI 6WDWLVWLFV  3UHOLPLQDU\ 5HSRUW RQ +RXVHKROG ,QFRPH DQG ([SHQGLWXUH 6XUYH\  $HAKA
 %DQJODGHVK %XUHDX RI 6WDWLVWLFV  6WDWLVWLFDO <HDUERRN  $HAKA
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

%R[  7KLQN JOREDO DFW ORFDO WKH WDOH RI 3ONA -OLLAR $ANGI

)URPWKHGLVWULFWWRZQRI)DULGSXULWWRRNDERXWDQKRXUE\PRWRUL]HGERDWWRUHDFK6RQD0ROODU'DQJL
D VPDOO YLOODJH RI  KRXVHKROGV DURXQG  SHRSOH RQ DQ LVODQG LQ WKH PLGGOH RI WKH PLJKW\ ULYHU
3DGPD6RPHWZHOYH\HDUVDJR6RQD0ROODWKHUHVSHFWHGYLOODJHHOGHUDQGKLVIDPLO\PRYHGRQWRWKLV
QHZO\IRUPHG
FKDU
7KDWZDVWKHILIWKWLPH6RQD0ROODKDGWRUHORFDWHLQVHDUFKRIDSLHFHRIODQGZKHUH
KHFRXOGVHWWOHGRZQZLWKKLVIDPLO\DQGPDNHDOLYLQJ2YHUWKH\HDUVRWKHUVIROORZHGKLPDQGDQHZ
FRPPXQLW\FDOOHGWKH6RQD0ROODU'RQJLHOHYDWHGODQGRI6RQD0ROODZDVERUQ

/LIHZDVJRRGIRUDZKLOHXQWLOWKHGLVDVWURXVIORRGRIFDPH7KHHQWLUHYLOODJHZHQWXQGHUZDWHUIRU
ZHHNV6RQD0ROODDQGKLVNLQKDGWRPRYHWRKLJKJURXQGLQGLVWDQWSODFHV$IWHUWKHIORRGWKH\WKRXJKW
WKH\ZRXOGQRZEHVDIHIRUPDQ\\HDUVDVWKHODVWELJIORRGZDVLQ7KHQH[WELJRQHZLOOQRWFRPH
EHIRUHWKH\WKRXJKW

8QIRUWXQDWHO\ FOLPDWH FKDQJH GULYHQ E\ JOREDO ZDUPLQJ SURYHG WKHP ZURQJ 1RW RQO\ GLG WKH\
H[SHULHQFHORQJKHDWZDYHVEXWDOVRWKHHQWLUHLVODQGZHQWXQGHUZDWHUWZLFHGXULQJGHYDVWDWLQJIORRGV
LQ  DQG  6RQD 0ROOD QRZ LQ KLV V ZDV DW D ORVV  WKLV ZDV YHU\ XQXVXDO 6RPHWKLQJ ZDV
VHULRXVO\ ZURQJ 6RQD 0ROOD IHOW WKDW WKH FRPPXQLW\ QHHGHG WR FRPH WRJHWKHU DQG GR VRPHWKLQJ
FROOHFWLYHO\7KHFKDUZDVVWLOOVWDEOHDQGSURYLGHGUHDVRQDEOHOLYHOLKRRGVLIRQO\WKHGLVDVWHUVZHUHOHVV
IUHTXHQW

,WZDVDWWKLVPRPHQWWKDWWKHILHOGZRUNHUVRI)DULGSXU'HYHORSPHQW$JHQF\)'$DORFDO1*2IXQGHG
E\WKH8.WKURXJKLWV&RPSUHKHQVLYH'LVDVWHU0DQDJHPHQW3URJUDPPHPRYHGLQWRKHOSWKLVUHPRWH
YLOODJH:LWK)'$
VKHOSWKHFRPPXQLW\FDPHXSZLWKDSODQWRVDYHWKHYLOODJHIURPUHFXUUHQWIORRGV

6RQD0ROODU'DQJLLVDZKROHQHZFRPPXQLW\QRZEXVWOLQJZLWKHQWKXVLDVPDQGKRSH:LWKVXSSRUWIURP
)'$WKH\PDQDJHGWRUDLVHDOOKRXVHKROGVDERYHWKHIORRGOHYHOE\DJRRGIHHW7KLVPHDQV
DOO WKH KRXVHV DQG EDUQV DUH RQ VDIH JURXQG QRZ VR DUH WKH EDFN\DUG JDUGHQV SRXOWU\ VKHGV DQG
VHHGOLQJV RI ZRRG\ DQG IUXLW WUHHV 6RRQ WKH\ ZLOO OLIW DOO KDQG WXEHZHOOV WR WKH VDPH OHYHO DV WKH
KRPHVWHDGVDQGEXLOGQHZVDQLWDU\ODWULQHV$OOWKLVZLOOFRVWOHVVWKDQ86SHUIDPLO\

3HRSOHDUHQRZWDONLQJDERXWVHWWLQJXSDSULPDU\VFKRRODQGDZHHNO\KHDOWKFOLQLF:LWKWKHLULQFRPH
DQG DVVHWV VHFXUHG WKH\ DUH EHJLQQLQJ WR GUHDP RI D EULJKWHU IXWXUH 3HUKDSV WKH\ ZLOO HYHQ KDYH
HOHFWULFLW\ VRRQ" 7KH PDLQ SRZHU JULG LV VWLOO IDU RXW RI WKHLU UHDFK EXW RQH KRXVHKROG KDV UHFHQWO\
VZLWFKHGWRDFOLPDWHIULHQGO\DOWHUQDWLYHDVPDOOVRODUSDQHOLQVWDOOHGRQWKHWLQURRI,WJHQHUDWHV
HQRXJKSRZHUWRUXQIRXUZDWWIOXRUHVFHQWWXEHOLJKWVDQGDEODFN ZKLWH79

7KH VLPSOH DQG KDUGZRUNLQJ SHRSOH RI 6RQD

0ROODU 'DQJL KDG QHYHU GRQH DQ\WKLQJ WR PDNH
0RWKHU 1DWXUH DQJU\ %XW WKH\ DUH IDFLQJ WKH
EUXQWRIKHUDQJHUDQ\ZD\:KLOHWKHUHVWRIWKH
ZRUOG DUH GHEDWLQJ ZKR LV WR EODPH IRU JOREDO
ZDUPLQJ DQG ZKR LV WR SD\ IRU LW WKH UHVLOLHQW
SHRSOH RI 6RQD 0ROODU 'DQJL VWDQG RXW DV D
UDGLDQW H[DPSOH RI KRZ WR EUDYH FOLPDWH
FKDQJH

6RXUFH , 0 )DLVDO
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

90,7,*$7,21
(YHQWKRXJK%DQJODGHVK
VFRQWULEXWLRQWRWKH WKHWUDQVIHURIVWDWHRIWKHDUWWHFKQRORJLHVIURP
JHQHUDWLRQ RI JUHHQKRXVH JDVHV LV PLQLVFXOH WKH GHYHORSHG FRXQWULHV WR HQVXUH WKDW WKH FRXQWU\
FRXQWU\ ZLVKHV WR SOD\ LWV SDUW LQ UHGXFLQJ IROORZV D ORZFDUERQ JURZWK SDWK %DQJODGHVK LV
HPLVVLRQV QRZ DQG LQ WKH IXWXUH VHH %R[  $V
VWDWHG HDUOLHU LQ 6HFWLRQ , WKH PLWLJDWLRQ DFWLYLW\
PXVW EH FRQVLVWHQW ZLWK WKH FRXQWU\·V HQHUJ\
VHFXULW\ DV WKH GHPDQG IRU HQHUJ\ ZLOO LQFUHDVH
ZLWK WKH TXLFNHQLQJ RI WKH SDFH RI GHYHORSPHQW
*RYHUQPHQWRI%DQJODGHVKWKHUHIRUHHQFRXUDJHV
DOVR FRPPLWWHG WR UHGXFLQJ JUHHQKRXVH JDV
HPLVVLRQV IURP DJULFXOWXUH DQG XUEDQ ZDVWH
PDQDJHPHQW7KHFRXQWU\LVIXUWKHUFRPPLWWHGWR
WKHGHYHORSPHQWRIIRUHVWU\UHVRXUFHVDQGLQWKLV
UHJDUG LV H[SORULQJ DOO DYHQXHV LQFOXGLQJ WKH
PHFKDQLVPVXQGHU5(''5HGXFLQJ(PLVVLRQIURP
LQFUHDVHG HQHUJ\ DQG FRVW HIILFLHQF\ LQ WKH 'HIRUHVWDWLRQDQG)RUHVW'HJUDGDWLRQ
GHYHORSPHQW DQG XWLOL]DWLRQ RI FRQYHQWLRQDO
HQHUJ\(PSKDVLVLVDOVRJLYHQWRWKHGHYHORSPHQW  &XUUHQWO\ %DQJODGHVK KDV WZR &OHDQ
RIUHQHZDEOHHQHUJ\SDUWLFXODUO\VRODUKRPHVDQG
ELRJDV SODQWV VR WKDW WKH HPLVVLRQ LV DV VPDOO DV
SRVVLEOH ZLWKRXW MHRSDUGL]LQJ WKH DFFHVV WR
HQHUJ\ ,Q UHFHQW \HDUV LQ SDUWQHUVKLS ZLWK FLYLO
VRFLHW\ LW KDV LPSOHPHQWHG D PDMRU QDWLRQZLGH
SURJUDPPH RI VRFLDO IRUHVWU\ DQG KDV SODQWHG
FRDVWDO
JUHHQEHOWV
DVDNH\DGDSWDWLRQPLWLJDWLRQ IDFWRQHPDMRUSULYDWHFRPSDQ\RIWKHFRXQWU\KDV
VWUDWHJ\ $V %DQJODGHVK LQGXVWULDOLVHV DQG
GHYHORSV FRDO UHVHUYHV WKH FRXQWU\ ZLOO VHHN
'HYHORSPHQW0HFKDQLVP&'0SURMHFWVFRQFHUQHG
ZLWKVRODUHQHUJ\DQGZDVWHPDQDJHPHQW,WORRNV
IRUZDUG WR LQFUHDVLQJ WKH QXPEHU RI VLPLODU
SURJUDPPHV DQG H[SHULPHQWLQJ ZLWK QHZ
LQVWUXPHQWV WR JHQHUDWH FDUERQ FUHGLWV DQG
IDFLOLWDWHFDUERQPDUNHWILQDQFLQJLQWKHIXWXUH,Q
DOUHDG\DQQRXQFHGSODQVIRUWUDGLQJLQFDUERQ


%R[  *UHHQKRXVH *DV *+* (PLVVLRQV DQG 0LWLJDWLRQ

%DQJODGHVK
VFRQWULEXWLRQWRHPLVVLRQRIJUHHQKRXVHJDV*+*LVPLQLVFXOH,QWKHWRWDO*+*HPLV
VLRQIURP$QQH[SDUWLHVZDVELOOLRQWRQQHVRI&2HTXLYDOHQWH[FOXGLQJ/DQG8VH/DQG8VH&KDQJH
DQG)RUHVWU\/8/8&),QFOXGLQJ/8/8&)LWZDVELOOLRQWRQQHV&2HTXLYDOHQW,QFRQWUDVWWKH
QRQ$QQH[SDUWLHVHPLWWHGDWRWDORIELOOLRQWRQQHVZLWK/8&)DQGZLWKRXW/8&)%DQJODGHVK
HPLWWHGRQO\WRELOOLRQWRQQHVZLWKRUZLWKRXW/8&)OHVVWKDQRQHILIWKRIRQHSHUFHQWRI
ZRUOGWRWDOUHIOHFWLQJLWVH[WUHPHO\ORZFRQVXPSWLRQRIHQHUJ\

%DQJODGHVKLVDORZHQHUJ\FRQVXPLQJEXWHQHUJ\VWDUYHGFRXQWU\,WVHQHUJ\FRQVXPSWLRQLQZDV
NJSHUFDSLWD2QO\1HSDODPRQJLWVQHLJKERXUVLQ6RXWK$VLDFRQVXPHVOHVVHQHUJ\RQDSHUFDSLWD
EDVLV'HVSLWHWKHORZOHYHORIHQHUJ\XVHWKHFRXQWU\LVXQDEOHWRPHHWHYHQWKHSUHVHQWGHPDQGIRU
HQHUJ\7KLVGHPDQGLVOLNHO\WRULVHDWOHDVWSHUFHQWIDVWHUZLWKDULVHLQ*'3SHUFDSLWDLQFRPLQJ\HDUV
7KHVHILJXUHVLQGLFDWHZK\HQHUJ\VHFXULW\LVDIXQGDPHQWDOLVVXHRIGHYHORSPHQWLQ%DQJODGHVK:KLOH
WKHUHLVVFRSHWRUDLVHHIILFLHQF\LQSURGXFWLRQDQGFRQVXPSWLRQRIHQHUJ\WKXVORZHULQJ*+*HPLVVLRQV
SHU XQLW RI HQHUJ\ XVH VXFK DFWLYLWLHV PXVW QRW MHRSDUGLVH WKH OHJLWLPDWH GHPDQG IRU DQG VXSSO\ RI
HQHUJ\

7KHRWKHUPDMRUVRXUFHVRI*+*HPLVVLRQLQ%DQJODGHVKDUHPHWKDQHIURPIORRGHGULFHILHOGVDQGZDVWH
SDUWLFXODUO\ LQ XUEDQ DUHDV 5DLVLQJ LUULJDWLRQ DQG ZDWHU XVH HIILFLHQF\ WKURXJK LPSURYHG DJURQRPLF
SUDFWLFHVDQGSURSHUZDVWHPDQDJHPHQWLVOLNHO\WRORZHUHPLVVLRQVRIPHWKDQHIURPWKHVHVRXUFHV
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

9,72:$5'6$&/,0$7(&+$1*(
675$7(*<$1'$&7,213/$1
7KH%DQJODGHVK&OLPDWH&KDQJH6WUDWHJ\DQG WRFOLPDWHFKDQJHPLWLJDWLRQWHFKQRORJ\WUDQV
$FWLRQ 3ODQ %&&6$3 EXLOGV XSRQ WKH FRXQWU\·V IHU DQG DGHTXDWH DQG WLPHO\ IORZ RI IXQGV IRU
ORQJKLVWRU\RIFOLPDWHVHQVLWLYHLQWHUYHQWLRQVE\ LQYHVWPHQWZLWKLQDIUDPHZRUNRIIRRGHQHUJ\
ZD\ RI SROLFLHV SURJUDPPHV DQG SURMHFWV
UXQQLQJ EDFN GHFDGHV DV ZHOO DV WKH FOLPDWH
VSHFLILF DFWLRQV LQ PRUH UHFHQW \HDUV 7KH
HOHPHQWV RI WKH HYROYLQJ 6WUDWHJ\ KDYH EHHQ
H[SUHVVHGPRVWIXOO\LQWKHFRXQWU\·VVXEPLVVLRQ
RQ%DOL$FWLRQ3ODQ'HFLVLRQ&3DGRSWHGLQ
%DOLLQFOHDUO\VWDWHVWKHLQDOLHQDEOHULJKWV
V FDSDFLW\ DW YDULRXV OHYHOV VXFK DV
RI WKH GHYHORSLQJ FRXQWULHV LQFOXGLQJ /'&V WR
ZDWHU DQG OLYHOLKRRGV LQOXGLQJ KHDOWK VHFXULW\
IRU DOO LWV FLWL]HQV 7R GR WKLV WKH FRXQWU\ KDV
DOUHDG\ PDGH FOLPDWH FKDQJH PDQDJHPHQW DQ
LQWHJUDOSDUWRILWVQDWLRQDOGHYHORSPHQWVWUDWHJ\
LQFOXGLQJWKH9LVLRQDQGWKHXSFRPLQJ6L[WK
)LYH <HDU 3ODQ DQG KDYH VWDUWHG WR EXLOG WKH
FRXQWU\
FRPPXQLWLHVFLYLOVRFLHW\WKHSULYDWHVHFWRUDQG
VXVWDLQDEOH GHYHORSPHQW DQG WKDW DOO FOLPDWH
FKDQJHDFWLYLWLHVZLOOEHZLWKLQWKDWIUDPHZRUN
DV GHILQHG DQG GHFLGHG E\ WKH QDWLRQV WKHP
VHOYHV $GDSWDWLRQ WR FOLPDWH FKDQJH ZKLOH D
SULRULW\ZLOOKDYHWREHOHYHUDJHGE\DGHTXDWH
ILQDQFLDOIORZVDQGWHFKQRORJ\WUDQVIHUIURPWKH
$QQH[ WR WKH 1RQ$QQH[  FRXQWULHV 2Q WKH
RWKHU KDQG ZKLOH PLWLJDWLRQ LV QRZ HYHU\
FRXQWU\·V UHVSRQVLELOLW\ LWV H[WHQW LV YROXQWDU\
IRUWKH1RQ$QQH[FRXQWULHVDQGLVWREHEDVHG
RQWKHSULQFLSOHRI1DWLRQDOO\$SSURSULDWH0LWLJD
*RYHUQPHQWVRWKDWWKHQDWLRQLVDEOHWRWDFNOH
WKH DGYHUVH LPSDFWV RI FOLPDWH FKDQJH LQ D
URXWLQHZD\DVSDUWRIWKHGHYHORSPHQWSURFHVV
7KLVZRUNPXVWEHVFDOHGXSXUJHQWO\$Q\GHOD\
ZLOO LQFUHDVH WKH ULVNV DVVRFLDWHG ZLWK FOLPDWH
FKDQJH ZKLFK FRXOG EH H[SHQVLYH WR PDQDJH
ODWHURQEXWPRUHLPSRUWDQWO\WKHKXPDQFRVWV
ZLOO EH LPPHDVXUDEOH 7KH 6WUDWHJ\ SULRULWLVHV
DGDSWDWLRQEXWDOVRIRFXVHVRQORZFDUERQGHYHO
RSPHQWPLWLJDWLRQWHFKQRORJ\WUDQVIHUDQGWKH
SURYLVLRQ RI DGHTXDWH ILQDQFH 7KH $FWLRQ 3ODQ
WLRQ $FWLRQV 1$0$ WR EH GHWHUPLQHG E\ WKH
FRXQWULHVWKHPVHOYHV6LPLODUWRDGDSWDWLRQWKH
1$0$VDOVRDUHWREHVXSSRUWHGWKURXJKILQDQFH
DQGWHFKQRORJ\WUDQVIHU%DVHGRQWKHVHJOREDOO\
DFFHSWHGSULQFLSOHVWKHREMHFWLYHRI%DQJODGHVK
&OLPDWH &KDQJH 6WUDWHJ\ LV WR LQFUHDVH WKH
FRXQWU\
V UHVLOLHQFH WR FOLPDWH FKDQJH UHGXFH
DQGRUHOLPLQDWHWKHULVNVFOLPDWHFKDQJHSRVHV
WR QDWLRQDO GHYHORSPHQW DQG UDSLGO\ GHYHORS
WKHFRXQWU\IROORZLQJDORZFDUERQJURZWKSDWK
7KH FRXQWU\ EHOLHYHV ILUPO\ WKDW DFFHOHUDWHG
GHYHORSPHQWLVWKHPRVWHIIHFWLYHZD\WRHUDGL
FDWH SRYHUW\ DQG EXLOG UHVLOLHQFH WR FOLPDWH
FKDQJH
0RUHVSHFLILFDOO\GUDZLQJXSRQWKHSULQFLSOH
RIVXVWDLQDEOHGHYHORSPHQWWKH&OLPDWH&KDQJH
6WUDWHJ\ LV WR XQGHUWDNH DFWLYLWLHV LQ DOO IRXU
EXLOGLQJEORFNVRIWKH%DOL$FWLRQ3ODQ²DGDSWDWLRQ
EDVHGXSRQWKH6WUDWHJ\KDVVL[SLOODUVHPSKDVL]
LQJ IRRG VHFXULW\ VRFLDO SURWHFWLRQ DQG KHDOWK
FRPSUHKHQVLYHGLVDVWHUPDQDJHPHQWLQIUDVWUXF
WXUHUHVHDUFKDQGNQRZOHGJHPDQDJHPHQWORZ
FDUERQ GHYHORSPHQW DQG FDSDFLW\ EXLOGLQJ
7KHVHDUHHODERUDWHGIXUWKHUEHORZ
7KH*RYHUQPHQWRI%DQJODGHVKKDVUHFHQWO\
HVWDEOLVKHGD1DWLRQDO&OLPDWH&KDQJH)XQGZLWK
DQLQLWLDOFDSLWDOLVDWLRQRIPLOOLRQODWHUUDLVHG
WRPLOOLRQZKLFKZLOOIRFXVPDLQO\RQDGDS
WDWLRQ %DQJODGHVK LV DOVR JRLQJ EH\RQG LWV
ERUGHUV WR WU\ WR ILQG FRPPRQ FDXVH ZLWK LWV
QHLJKERXUV WR PDQDJH FOLPDWH FKDQJH LPSDFWV
WKURXJKUHJLRQDODFWLRQSODQVDVGHPRQVWUDWHGLQ
WKH  6$$5& 0LQLVWHUV RI (QYLURQPHQW PHHW
LQJKHOGLQ'KDND7KHFRXQWU\LVDOVRVHHNLQJWR
HQKDQFH FRRSHUDWLRQ ZLWK QHLJKERXUV RQ NH\
LVVXHVLQFOXGLQJZDWHUVHFXULW\
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

 7KH 1DWLRQDO $GDSWDWLRQ 3URJUDPPH RI

$FWLRQ 1$3$ ODXQFKHG E\ WKH *RYHUQPHQW RI
%DQJODGHVKLQSURYLGHGDUHVSRQVHWRWKH
XUJHQW DQG LPPHGLDWH QHHGV RI DGDSWDWLRQ DQG
LGHQWLILHG SULRULW\ SURJUDPPHV 7KH 1DWLRQDO
&DSDFLW\6HOI$VVHVVPHQWIRULPSOHPHQWLQJWKH
SURYLVLRQVRIPXOWLODWHUDODJUHHPHQWVLQFOXGLQJ
WKH&OLPDWH&KDQJH&RQYHQWLRQZDVODXQFKHGLQ


 $GDSWDWLRQ WR FOLPDWH FKDQJH ZLOO SODFH D

PDVVLYH EXUGHQ RQ %DQJODGHVK
V GHYHORSPHQW
EXGJHW DQG LQWHUQDWLRQDO VXSSRUW ZLOO EH
HVVHQWLDO WR KHOS FRXQWU\ ULVH WR WKH FKDOOHQJH
%DQJODGHVK LV VHHNLQJ WKH VWURQJ SROLWLFDO
FRPPLWPHQW DQG VXSSRUW RI WKH LQWHUQDWLRQDO
FRPPXQLW\ WR DVVLVW LQ LPSOHPHQWLQJ LWV
ORQJWHUPFOLPDWHUHVLOLHQWVWUDWHJ\%DQJODGHVK
FDOOVRQWKHLQWHUQDWLRQDOFRPPXQLW\WRSURYLGH
WKH UHVRXUFHV QHHGHG WR PHHW WKH DGGLWLRQDO
FRVWVRIEXLOGLQJFOLPDWHUHVLOLHQFHDQGDOVRIRU
DGRSWLQJ FOHDQHVW HQHUJ\ GHYHORSPHQW
WHFKQRORJ\VHHEHORZ

 7KH OLNHO\ LPSDFWV RI JOREDO ZDUPLQJ RQ

%DQJODGHVKDQGUHTXLUHGW\SHVRILQYHVWPHQWDUH
VKRZQLQWKHVFKHPDWLFGLDJUDPLQ%R[
 

%R[  /LNHO\ LPSDFWV RI JOREDO ZDUPLQJ RQ %DQJODGHVK DQG UHTXLUHG LQYHVWPHQWV

,PPHGLDWH LPSDFW 5HVXOW ,QYHVWPHQWV QHHGHG

&\FORQHV ² LQFUHDVHG IUHTXHQF\ +LJKHU VWRUP VXUJHV (DUO\ :DUQLQJ V\VWHPV

DQG VHYHULW\ +LJKHU ZLQG VSHHG &\FORQH VKHOWHUV DQG .LOODV

(DUO\ ZDUQLQJ V\VWHPV

,PSURYHG 2 0 RI
HPEDQNPHQWV
8SJUDGLQJ RI IORRG
+LJKHU ULYHU IORZV SURWHFWLRQ
+HDYLHU PRUH HUUDWLF HPEDQNPHQWVGUDLQDJH
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

'UDLQDJH FRQJHVWLRQ
UDLQIDOO LQ *%0 EDVLQ LQ V\VWHPV
WKH PRQVRRQ VHDVRQ )ORRGLQJ LQ UXUDO XUEDQ DUHDV 5DLVLQJ VRPH URDGV DQG
UDLOZD\ WUDFNV
)ORRG SURRILQJ
,PSURYHG FURSV DQG
FURSSLQJ V\VWHPV

,PSURYHG LUULJDWLRQ DQG

'URXJKWV DQG VFDUFLW\ ZDWHU PDQDJHPHQW
/RZHU PRUH HUUDWLFUDLQIDOO
3URYLVLRQ RI GULQNLQJ ZDWHU
DW RWKHU WLPHV RI GULQNLQJ ZDWHU ,PSURYHG FURSV DQG FURSSLQJ
V\VWHPV

+LJKHU ULYHU IORZV LQ VKRUW WR

([DFHUEDWHV LPSDFWV RI 
0HOWLQJ RI +LPDOD\DQ JODFLHUV PHGLXP WHUP DQG WKHQ UHGXFHG

*/2%$/ :$50,1*
DQG 
IORZV DQG LQFUHDVHG VDOLQH LQWUXVLRQ

&RDVWDO HPEDQNPHQWV
6 H D O H YH O U L V H RYHUWRSSHG 6DOLQH LQWUXVLRQ
LQWR ULYHUV DQG JURXQGZDWHU
,PSURYHG 2 0 DQG
XSJUDGLQJ RI FRDVWDO
HPEDQNPHQWV DQG SROGHUV
,PSURYHG FURSV DQG FURSSLQJ
V\VWHPV
3URYLVLRQ RI SRWDEOH GULQNLQJ
Z DW HU
6RFLDO SURWHFWLRQ IRU WKH YXOQHUDEOH  &RPPXQLW\EDVHG DGDSWDWLRQ

3RVVLEOH LQGXVWULDO UHORFDWLRQ

+HDOWK HGXFDWLRQDZDUHQHVV
,PPXQLVDWLRQ
:DUPHU DQG PRUH ,QFUHDVHG SUHYDOHQFH RI 2WKHU SUHYHQWLRQ
KXPLG ZHDWKHU GLVHDVH DQG GLVHDVH YHFWRUV SURJUDPPHV
'ULQNLQJ ZDWHU DQG
VDQLWDWLRQ

1RWH 7KH DUURZV LQ WKLV GLDJUDP DUH QRW PHDQW WR GHQRWH OLQHDU UHODWLRQVKLSV EHWZHHQ ER[HV 7KH UHODWLRQVKLSV EHWZHHQ DQG
ZLWKLQ ER[HV DUH YHU\ FRPSOH[ DQG DUH QRW FDSWXUHG E\ WKLV GLDJUDP

 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

7+(&/,0$7(&+$1*($&7,213/$1
 7KH &OLPDWH &KDQJH $FWLRQ 3ODQ LV D \HDU SURJUDPPH  WR EXLOG WKH FDSDFLW\ DQG
UHVLOLHQFHRIWKHFRXQWU\WRPHHWWKHFKDOOHQJHRIFOLPDWHFKDQJH7KHQHHGVRIWKHSRRUDQGYXOQHUDEOH
LQFOXGLQJZRPHQDQGFKLOGUHQZLOOEHPDLQVWUHDPHGLQDOODFWLYLWLHVXQGHUWKH$FWLRQ3ODQ,QWKHILUVW
ILYH\HDUSHULRGWKHSURJUDPPHZLOOFRPSULVHVL[SLOODUV

)RRG VHFXULW\ VRFLDO SURWHFWLRQ DQG KHDOWK

&OLPDWHFKDQJHLVOLNHO\WRLPSDFWPRVWVHYHUHO\RQWKHSRRUHVWDQGPRVWYXOQHUDEOHLQVRFLHW\(YHU\HIIRUW
ZLOOPDGHWRHQVXUHWKDWWKH\DUHSURWHFWHGDQGWKDWDOOSURJUDPPHVIRFXVRQWKHQHHGVRIWKLVJURXSIRU
IRRGVHFXULW\VDIHKRXVLQJHPSOR\PHQWDQGDFFHVVWREDVLFVHUYLFHVLQFOXGLQJKHDOWK8QGHUWKLVSLOODUZH
ZLOO

,QFUHDVHWKHUHVLOLHQFHRIYXOQHUDEOHJURXSVLQFOXGLQJZRPHQDQGFKLOGUHQWKURXJKGHYHORSPHQW
RIFRPPXQLW\OHYHODGDSWDWLRQOLYHOLKRRGGLYHUVLILFDWLRQEHWWHUDFFHVVWREDVLFVHUYLFHVDQGVRFLDO
SURWHFWLRQHJVDIHW\QHWVLQVXUDQFHDQGVFDOLQJXS

'HYHORSFOLPDWHFKDQJHUHVLOLHQWFURSSLQJV\VWHPVHJDJULFXOWXUDOUHVHDUFKWRGHYHORSFURS
YDULHWLHV ZKLFK DUH WROHUDQW RI IORRGLQJ GURXJKW DQG VDOLQLW\ DQG EDVHG RQ LQGLJHQRXV DQG RWKHU
YDULHWLHVVXLWHGWRWKHQHHGVRIUHVRXUFHSRRUIDUPHUVILVKHULHVDQGOLYHVWRFNV\VWHPVWRHQVXUHORFDO
DQGQDWLRQDOIRRGVHFXULW\

,PSOHPHQWVXUYHLOODQFHV\VWHPVIRUH[LVWLQJDQGQHZGLVHDVHULVNVDQGHQVXUHKHDOWKV\VWHPVDUH
JHDUHGXSWRPHHWIXWXUHGHPDQGV

,PSOHPHQWGULQNLQJZDWHUDQGVDQLWDWLRQSURJUDPPHVLQDUHDVDWULVNIURPFOLPDWHFKDQJHHJ
FRDVWDODUHDVIORRGDQGGURXJKWSURQHDUHDV

 &RPSUHKHQVLYH 'LVDVWHU 0DQDJHPHQW

&RPSUHKHQVLYH 'LVDVWHU 0DQDJHPHQW V\VWHPV ZLOO EH IXUWKHU VWUHQJWKHQHG WR GHDO ZLWK WKH LQFUHDVLQJO\
IUHTXHQWDQGVHYHUHQDWXUDOFDWDVWURSKHVDVDUHVXOWRIFOLPDWHFKDQJH:HZLOOEXLOGRQDQGH[WHQGRXU
SURYHQH[SHULHQFHLQWKLVDUHD8QGHUWKLVSLOODUZHZLOO

  6WUHQJWKHQ WKH JRYHUQPHQW

V FDSDFLW\ DQG WKDW RI FLYLO VRFLHW\ SDUWQHUV DQG FRPPXQLWLHV WR
PDQDJHQDWXUDOGLVDVWHUVDQGHQVXUHWKDWDSSURSULDWHSROLFLHVODZVDQGUHJXODWLRQVDUHLQSODFH

6WUHQJWKHQFRPPXQLW\EDVHGDGDSWDWLRQSURJUDPPHVDQGHVWDEOLVKWKHPLQHDFKRIWKHGLVDVWHU
SURQHSDUWVRIWKHFRXQWU\

6WUHQJWKHQRXUF\FORQHVWRUPVXUJHDQGIORRGHDUO\ZDUQLQJV\VWHPVWRHQDEOHPRUHDFFXUDWH
VKRUWPHGLXPDQGORQJWHUPIRUHFDVWV
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

,QIUDVWUXFWXUH

,WLVLPSHUDWLYHWKDWH[LVWLQJLQIUDVWUXFWXUHHJFRDVWDODQGULYHUHPEDQNPHQWVLVZHOOPDLQWDLQHGDQGILW

IRUSXUSRVHDQGWKDWXUJHQWO\QHHGHGLQIUDVWUXFWXUHHJF\FORQHVKHOWHUVXUEDQGUDLQDJHLVSXWLQSODFHWR
GHDOZLWKWKHOLNHO\VKRUWDQGPHGLXPWHUPLPSDFWVRIFOLPDWHFKDQJH8QGHUWKLVSLOODUZHZLOO

5HSDLUDQGUHKDELOLWDWHH[LVWLQJLQIUDVWUXFWXUHHJFRDVWDOHPEDQNPHQWVULYHUHPEDQNPHQWVDQG
GUDLQDJHV\VWHPVXUEDQGUDLQDJHV\VWHPVDQGHQVXUHHIIHFWLYHRSHUDWLRQDQGPDLQWHQDQFHV\VWHPV

3ODQGHVLJQDQGFRQVWUXFWXUJHQWO\QHHGHGQHZLQIUDVWUXFWXUHHJF\FORQHVKHOWHUVFRDVWDODQG
ULYHU HPEDQNPHQWV DQG ZDWHU PDQDJHPHQW V\VWHPV XUEDQ GUDLQDJH V\VWHPV ULYHU HURVLRQ FRQWURO
ZRUNVIORRGVKHOWHUVWRPHHWWKHFKDQJLQJFRQGLWLRQVH[SHFWHGZLWKFOLPDWHFKDQJH

8QGHUWDNHVWUDWHJLFSODQQLQJRIIXWXUHLQIUDVWUXFWXUHQHHGVWDNLQJLQWRDFFRXQWWKHOLNHO\DIXWXUH
SDWWHUQV RI XUEDQLVDWLRQ DQG VRFLRHFRQRPLF GHYHORSPHQW DQG E WKH FKDQJLQJ K\GURORJ\ RI WKH
FRXQWU\EHFDXVHRIFOLPDWHFKDQJH

 5HVHDUFKDQGNQRZOHGJHPDQDJHPHQW

5HVHDUFKZLOOEHXQGHUWDNHQWRHVWLPDWHWKHOLNHO\VFDOHDQGWLPLQJRIFOLPDWHFKDQJHLPSDFWVRQGLIIHUHQW
VHFWRUV RI WKH HFRQRP\ WR LQIRUP SODQQLQJ RI IXWXUH LQYHVWPHQW VWUDWHJLHV :H ZLOO DOVR HQVXUH WKDW
%DQJODGHVK LV HIIHFWLYHO\ OLQNHG WR UHJLRQDO DQG QDWLRQDO NQRZOHGJH QHWZRUNV VR WKDW %DQJODGHVKL
RUJDQLVDWLRQVDQGWKHJHQHUDOSXEOLFDUHDZDUHRIWKHODWHVWUHVHDUFKOHVVRQVDQGWHFKQRORJLHVDYDLODEOHLQ
RWKHUFRXQWULHV8QGHUWKLVSLOODUZHZLOO

 0RGHO FOLPDWH FKDQJH VFHQDULRV IRU %DQJODGHVK E\ DSSO\LQJ JOREDO FOLPDWH FKDQJH PRGHOV DQG
PHWKRGRORJLHVDWUHJLRQDODQGQDWLRQDOOHYHOV

0RGHOWKHOLNHO\K\GURORJLFDOLPSDFWVRIFOLPDWHFKDQJHRQWKH*DQJHV%UDKPDSXWUD0HJKQDV\VWHP
WR DVVHVV OLNHO\ IXWXUH V\VWHP GLVFKDUJHV DQG ULYHU OHYHOV LQ RUGHU WR GHULYH GHVLJQ FULWHULD IRU IORRG
SURWHFWLRQHPEDQNPHQWV

0RQLWRUDQGUHVHDUFKWKHLPSDFWVRIFOLPDWHFKDQJHRQHFRV\VWHPVDQGELRGLYHUVLW\

5HVHDUFKWKHOLNHO\LPSDFWVRIFOLPDWHFKDQJHRQWKHPDFURHFRQRP\RI%DQJODGHVKD%DQJODGHVK

6WHUQ 5HSRUW
 DQG NH\ VHFWRUV HJ OLYHOLKRRGV DQG IRRG VHFXULW\ DQG FRQWULEXWH WR GHYHORSLQJ D
FOLPDWHSURRIQDWLRQDOGHYHORSPHQWSODQ

 5HVHDUFK WKH OLQNDJHV EHWZHHQ D FOLPDWH FKDQJH SRYHUW\ DQG YXOQHUDELOLW\ DQG E FOLPDWH
FKDQJHSRYHUW\DQGKHDOWKGLVHDVHLQFLGHQFHQXWULWLRQZDWHUVDQLWDWLRQLQRUGHUWRLGHQWLI\SRVVLEOH
LQWHUYHQWLRQVWRLQFUHDVHWKHUHVLOLHQFHRISRRUDQGYXOQHUDEOHKRXVHKROGVWRFOLPDWHFKDQJH

(VWDEOLVKD&HQWUHIRU5HVHDUFKDQG.QRZOHGJH0DQDJHPHQWRQ&OLPDWH&KDQJHRUDQHWZRUNRI
FHQWUHVWRHQVXUH%DQJODGHVKKDVDFFHVVWRWKHODWHVWLGHDVDQGWHFKQRORJLHVIURPDURXQGWKHZRUOG
DQGHQVXUHWKDWGDWDLVZLGHO\DQGIUHHO\DYDLODEOHWRUHVHDUFKHUV
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

0LWLJDWLRQDQGORZFDUERQGHYHORSPHQW

(YHQWKRXJK%DQJODGHVK
VFRQWULEXWLRQWRWKHJHQHUDWLRQRIJUHHQKRXVHJDVHVLVYHU\ORZZHZLVKWRSOD\
RXUSDUWLQUHGXFLQJHPLVVLRQVQRZDQGLQWKHIXWXUH8QGHUWKLVSLOODUZHZLOO

'HYHORSDVWUDWHJLFHQHUJ\SODQDQGLQYHVWPHQWSRUWIROLRWRHQVXUHQDWLRQDOHQHUJ\VHFXULW\DQG
ORZHUJUHHQKRXVHJDVHPLVVLRQV

 ([SDQG WKH VRFLDO IRUHVWU\ SURJUDPPH RQ JRYHUQPHQW DQG FRPPXQLW\ ODQGV WKURXJKRXW WKH
FRXQWU\

 ([SDQG WKH

JUHHQEHOW
 FRDVWDO D IRUHVWDWLRQ SURJUDPPH ZLWK PDQJURYH SODQWLQJ DORQJ WKH
VKRUHOLQH

6HHNWKHWUDQVIHURIVWDWHRIWKHDUWWHFKQRORJLHVIURPGHYHORSHGFRXQWULHVWRHQVXUHWKDWZH
IROORZDORZFDUERQJURZWKSDWKHJ
FOHDQFRDO
DQGRWKHUWHFKQRORJLHV

5HYLHZHQHUJ\DQGWHFKQRORJ\SROLFLHVDQGLQFHQWLYHVDQGUHYLVHWKHVHZKHUHQHFHVVDU\WR
SURPRWHHIILFLHQWSURGXFWLRQFRQVXPSWLRQGLVWULEXWLRQDQGXVHRIHQHUJ\

 &DSDFLW\EXLOGLQJDQGLQVWLWXWLRQDOVWUHQJWKHQLQJ

7RPHHWWKHFKDOOHQJHRIFOLPDWHFKDQJHWKHFDSDFLW\RIJRYHUQPHQWPLQLVWULHVDQGDJHQFLHVFLYLOVRFLHW\
DQGWKHSULYDWHVHFWRUZLOOEHVWUHQJWKHQHG8QGHUWKLVSLOODUZHZLOO

5HYLHZDQGUHYLVHZKHUHDSSURSULDWHDOOJRYHUQPHQWSROLFLHVVHFWRUE\VHFWRUWRHQVXUHWKDWWKH\

WDNHIXOODFFRXQWRIFOLPDWHFKDQJHDQGLWVLPSDFWV

0DLQVWUHDPFOLPDWHFKDQJHLQQDWLRQDOVHFWRUDODQGVSDWLDOGHYHORSPHQWSODQQLQJLQJRYHUQPHQW
PLQLVWULHVDQGDJHQFLHVORFDOJRYHUQPHQWWKHSULYDWHVHFWRUFLYLOVRFLHW\DQGFRPPXQLWLHVDQGHQVXUH
WKDWLPSDFWVRQYXOQHUDEOHJURXSVDQGZRPHQDUHSULRULWLVHGLQSODQV

%XLOGWKHFDSDFLW\RINH\JRYHUQPHQWPLQLVWULHVDQGDJHQFLHVWRWDNHIRUZDUGFOLPDWHFKDQJHDGDS
WDWLRQHJ0LQLVWU\RI)RRGDQG'LVDVWHU0DQDJHPHQW%DQJODGHVK:DWHU'HYHORSPHQW%RDUG/RFDO
*RYHUQPHQW (QJLQHHULQJ 'HSDUWPHQW 1DWLRQDO $JULFXOWXUDO 5HVHDUFK 6\VWHP WKH KHDOWK V\VWHP WKH
0LQLVWU\RI:RPHQ
VDQG&KLOGUHQ
V$IIDLUV

 %XLOG WKH FDSDFLW\ RI WKH JRYHUQPHQW WR XQGHUWDNH LQWHUQDWLRQDO DQG UHJLRQDO QHJRWLDWLRQV RQ
FOLPDWHFKDQJH5HJLRQDODQGLQWHUQDWLRQDOFRRSHUDWLRQLVHVVHQWLDOLQRUGHUWREXLOGQHFHVVDU\FDSDFLW\
DQGUHVLOLHQFH

%XLOGWKHFDSDFLW\RIWKHJRYHUQPHQWFLYLOVRFLHW\DQGWKHSULYDWHVHFWRURQFDUERQILQDQFLQJWR
DFFHVVYDULRXVJOREDOFOLPDWHIXQGV

%XLOGWKHFDSDFLW\IRUHGXFDWLRQDQGWUDLQLQJRIHQYLURQPHQWDOUHIXJHHVWRHDVHDQGIDFLOLWDWHWKHLU
PLJUDWLRQWRRWKHUFRXQWULHVDQGLQWHJUDWLRQLQQHZVRFLHWLHV
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

7KH1DWLRQDO6WHHULQJ&RPPLWWHHRQ&OLPDWH&KDQJH
3URJUDPPHVDQG DOVR SURYLGHV JXLGDQFH RQ LQWHUQDWLRQDO FOLPDWH
FKDQJH QHJRWLDWLRQV LQFOXGLQJ ELODWHUDO
6XESURJUDPPHV PXOWLODWHUDO DQG UHJLRQDO SURJUDPPHV IRU
FROODERUDWLRQ UHVHDUFK H[FKDQJH RI LQIRUPDWLRQ
DQGGHYHORSPHQW$&OLPDWH&KDQJH8QLWZLOOEHVHW
 'HWDLOV RI WKH 3URJUDPPHV DQG 6XE XS LQ WKH 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV WR
SURJUDPPHVWREHLPSOHPHQWHGXQGHUWKH$FWLRQ VXSSRUWWKH1DWLRQDO6WHHULQJ&RPPLWWHHRQ&OLPDWH
3ODQDUHJLYHQLQ$QQH[ &KDQJH ,W ZLOO ZRUN ZLWK &OLPDWH &KDQJH )RFDO
3RLQWV WR EH VHW XS LQ DOO PLQLVWULHV ,Q IDFW  DUH
,PSOHPHQWLQJWKH$FWLRQ DOUHDG\LQSODFH

3ODQ  7KH %DQJODGHVK &OLPDWH &KDQJH 6WUDWHJ\ DQG

$FWLRQ 3ODQ ZDV RULJLQDOO\ GHYHORSHG WKURXJK D
SDUWLFLSDWRU\SURFHVVLQYROYLQJDOOUHOHYDQW0LQLVWULHV
 7KH *RYHUQPHQW RI %DQJODGHVK UHFRJQL]HV
DQG DJHQFLHV FLYLO VRFLHW\ UHVHDUFK RUJDQL]DWLRQV
WKDW LW QHHGV WR VWUHQJWKHQ H[LVWLQJ LQVWLWXWLRQV
WKH DFDGHPLD DQG WKH EXVLQHVV FRPPXQLW\
DQGPD\DOVRQHHGWRFUHDWHDQGGHYHORSQHZRQHV
3URJUDPPHV IXQGHG XQGHU WKH $FWLRQ 3ODQ ZLOO EH
WRUHVSRQGHIIHFWLYHO\WRWKHHQRUPRXVFKDOOHQJHV
LPSOHPHQWHG E\ OLQH PLQLVWULHV DQG DJHQFLHV ZLWK
RIFOLPDWHFKDQJH$1DWLRQDO6WHHULQJ&RPPLWWHH
SDUWLFLSDWLRQ DV DSSURSULDWH RI RWKHU VWDNHKROGHU
RQ &OLPDWH &KDQJH KDV EHHQ HVWDEOLVKHG WR
JURXSV LQFOXGLQJ FLYLO VRFLHW\ SURIHVVLRQDO DQG
FRRUGLQDWH DQG IDFLOLWDWH QDWLRQDO DFWLRQV RQ
UHVHDUFKERGLHVDQGWKHSULYDWHVHFWRU
FOLPDWH FKDQJH VHH %R[  ,W LV FKDLUHG E\ WKH
0LQLVWHURIWKH0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV
7KH%&&6$3ZLOOEHUHYLHZHGSHULRGLFDOO\
DQG FRPSULVHV WKH 6HFUHWDULHV RI DOO
DQG UHYLVHG DV QHFHVVDU\ LQ OLQH ZLWK QDWLRQDO
FOLPDWHDIIHFWHG 0LQLVWULHV DQG 'LYLVLRQV DQG
GHYHORSPHQW SULRULWLHV HPHUJLQJ VFLHQWLILF DQG
UHSUHVHQWDWLYHV RI FLYLO VRFLHW\ DQG WKH EXVLQHVV
WHFKQLFDO NQRZOHGJH DQG WKH RXWFRPHV RI JOREDO
FRPPXQLW\,WUHSRUWVWRWKH1DWLRQDO(QYLURQPHQW
QHJRWLDWLRQV XQGHU 81)&&& DQG RWKHU 81OHG
&RPPLWWHHFKDLUHGE\WKH3ULPH0LQLVWHU
FOLPDWHFKDQJHQHJRWLDWLRQSURFHVVHV

%R[  &OLPDWH &KDQJH $FWLRQ 3ODQ 2UJDQLVDWLRQ &KDUW

1DWLRQDO (QYLURQPHQW &RPPLWWHH

+HDGHGE\3ULPH0LQLVWHU
6WUDWHJLF JXLGDQFH DQG RYHUVLJKW

1DWLRQDO 6WHHULQJ &RPPLWWHH RQ &OLPDWH &KDQJH

+HDGHGE\0LQLVWHU&KDLU
0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV
2YHUDOO &RRUGLQDWLRQ DQG IDFLOLWDWLRQ

&OLPDWH &KDQJH 8QLW &OLPDWH &KDQJH QHJRWLDWLRQV

0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV ,Q DVVRFLDWLRQ ZLWK 0LQLVWU\
&RRUGLQDWLRQ DQG PDQDJHPHQW RI )RUHLJQ $IIDLUV

&OLPDWH &KDQJH )RFDO3RLQWVLQ DOO 0LQLVWULHV

3ODQ DQG LPSOHPHQW DFWLYLWLHV ZLWKLQ WKHLU UHPLW
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

VWDUWHGLQWKHQH[W\HDUVZLOOEHLGHQWLILHGZLWK
)LQDQFLQJ WKH $FWLRQ VSHFLDODWWHQWLRQRQWKHQHHGVRIWKHSRRUHVWDQG
PRVWYXOQHUDEOHLQVRFLHW\WKHQHHGWRFUHDWHDQ
3ODQ HQDEOLQJ HQYLURQPHQW WR SURPRWH FOLPDWH
UHVLOLHQWLQYHVWPHQWDQGRQHQVXULQJWKDWNQRZO
HGJH GDWD DQG H[SHULHQFH RQ DGDSWDWLRQ LV
 :KLOH DGDSWDWLRQ DQG PLWLJDWLRQ DUH WKH
VKDUHGZLWKRWKHUFRXQWULHVLQWKHUHJLRQ
PDLQ WDVNV ILQDQFH DQG WHFKQRORJ\ DUH WKH
PHDQV WR DFKLHYH WKHP 7KHVH WZR DUHDV KDYH
,WLVHVWLPDWHGWKDWDPLOOLRQSURJUDPPH
WKHUHIRUH DWWUDFWHG PXFK DWWHQWLRQ GXULQJ WKH
ZLOOQHHGWREHLQLWLDWHGLQ<HDUVDQGHJ
FOLPDWHFKDQJHQHJRWLDWLRQVIURPWKHEHJLQQLQJ
IRU LPPHGLDWH DFWLRQV VXFK DV VWUHQJWKHQLQJ
7KHEURDGSULQFLSOHVDUHFOHDU)LUVWWKHSUHVHQW
GLVDVWHU PDQDJHPHQW UHVHDUFK DQG NQRZOHGJH
GD\ FOLPDWH FKDQJH LV WKH UHVXOW PDLQO\ RI
PDQDJHPHQW FDSDFLW\ EXLOGLQJ DQG SXEOLF
KLVWRULFDO *+* HPLVVLRQ E\ :HVWHUQ DQG RWKHU
DZDUHQHVVSURJUDPPHVDQGXUJHQWLQYHVWPHQWV
LQGXVWULDOL]HG FRXQWULHV 7KH ILQDQFH IRU
VXFK DV F\FORQH VKHOWHUV DQG VHOHFWHG GUDLQDJH
DGDSWDWLRQDQGPLWLJDWLRQWKHUHIRUHKDVWRFRPH
LQFOXGLQJXUJHQWGUHGJLQJSURJUDPPHVDQGWKDW
PDLQO\ IURP WKHVH FRXQWULHV ZKLFK GRHV QRW
WKHWRWDOFRVWRISURJUDPPHVFRPPHQFLQJLQWKH
SUHFOXGH QDWLRQDO DFWLRQV E\ WKH DIIHFWHG
ILUVW\HDUVFRXOGEHRIWKHRUGHURIELOOLRQ
FRXQWULHVRQWKHLURZQ+RZWKHIXQGLQJPD\EH
JHQHUDWHG LV D PDWWHU RI LQWHUQDWLRQDO
 7KH *RYHUQPHQW RI %DQJODGHVK KDV
QHJRWLDWLRQ+RZHYHU%DQJODGHVKZLVKHVWKDWLW
HVWDEOLVKHGD1DWLRQDO&OLPDWH&KDQJH)XQG7KH
EH XQGHU D QHZ ILQDQFLDO DUFKLWHFWXUH LQ ZKLFK
*RYHUQPHQW GHVLUHV WKDW DOO GHYHORSPHQW
/'&V*DQG&KLQDDQGRWKHUJURXSVZLOOKDYH
SDUWQHUVZKRVRZLVKZLOOFRQWULEXWHWRWKLVIXQG
YRLFH LQ JHQHUDWLQJ DOORFDWLQJ DQG
([DFWO\ZKDWZRXOGEHWKHRSHUDWLRQDOPRGDOLW\
GLVEXUVHPHQWVRIWKHIXQGV
PD\EHZRUNHGRXWE\WKH*RYHUQPHQWDQGWKH
SDUWLFXODUGHYHORSPHQWSDUWQHU%XWWKHFDUGLQDO
$OOIXQGVIRUDGDSWDWLRQKDVWREHRQDSXUHO\
SULQFLSOH RI WKH RSHUDWLRQ RI WKH IXQG VKDOO EH
JUDQW EDVLV DV WKH QHHG IRU DGDSWDWLRQ DULVH
WKDW LW ZLOO EH XVHG VROHO\ WR ILQDQFH DFWLYLWLHV
EHFDXVHRIFOLPDWHFKDQJHGXHWRWKHKLVWRULFDO
XQGHU WKH $FWLRQ 3ODQ $QG VHFRQGO\ WKLV
HPLVVLRQRI*+*VE\WKHLQGXVWULDOL]HGFRXQWULHV
FRQWULEXWLRQ ZLOO QRW EH D VXEVWLWXWH IRU RWKHU
0LWLJDWLRQGHSHQGVPDLQO\RQHQHUJ\SURGXFWLRQ
QRUPDO IXQGLQJ IRU GHYHORSPHQW E\ WKH
GLVWULEXWLRQ DQG FRQVXPSWLRQ WHFKQRORJ\ 2IWHQ
GHYHORSPHQWSDUWQHUV
WKH PRVW HIILFLHQW WHFKQRORJLHV DUH H[SHQVLYH
%DQJODGHVKZLVKHVWRGRKHUELWKRZHYHUVPDOO
LQWKHJOREDOHIIRUWWRPLQLPL]H*+*VHPLVVLRQE\
DGRSWLQJ VXFK HQHUJ\HIILFLHQW WHFKQRORJ\
7HFKQRORJ\WUDQVIHU
+RZHYHUXQOHVVWKHDGGLWLRQDOFRVWVRIDGRSWLQJ $FFHVVWRSURSHUFRVWHIIHFWLYHDQGHIILFLHQW
HIILFLHQW WHFKQRORJ\ LV QRW SDLG IRU WKURXJK WKH WHFKQRORJ\ IRU DGDSWDWLRQ DQG PLWLJDWLRQ DUH
LQWHUQDWLRQDO ILQDQFLDO PHFKDQLVP %DQJODGHVK H[WUHPHO\LPSRUWDQWIRULPSOHPHQWLQJWKH$FWLRQ
ZLOOQRWEHDEOHWRDGRSWWKHP/LNHDGDSWDWLRQ 3ODQ $OO DFWLYLWLHV XQGHU WKH $FWLRQ 3ODQ ZKHQ
WKLV SDUW RI WKH DGGLWLRQDO FRVW RI SURFXULQJ WUDQVODWHG LQWR VSHFLILF SURMHFWV PXVW KDYH
HIILFLHQW WHFKQRORJ\ VKRXOG EH ILQDQFHG RQ D FOHDUO\ LGHQWLILHG VHFWLRQ RQ WHFKQRORJ\
JUDQWEDVLV JHQHUDWLRQDGDSWDWLRQDQGWUDQVIHU7HFKQRORJ\
QHHGVDVVHVVPHQWZLOOEHDQLQWHJUDOSDUWRIPDQ\
 7KH 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV LV RI WKH LQYHVWPHQW DFWLYLWLHV 6HFRQGO\ PDQ\ RI
FXUUHQWO\ ZRUNLQJ RXW WKH FRVW RI LPSOHPHQWLQJ WKHVWDWHRIWKHDUWWHFKQRORJ\LVQRWRQO\FRVWO\
WKH WHQ\HDU $FWLRQ 3ODQ LQ FRQVXOWDWLRQ ZLWK WKHVH DUH DOVR SURWHFWHG XQGHU ,QWHOOHFWXDO
/LQH 0LQLVWULHV $ GLVWLQFWLRQ LV EHLQJ PDGH
EHWZHHQDFWLYLWLHVZKLFKDUHSDUWRIWKHUHJXODU
QDWLRQDO GHYHORSPHQW SURJUDPPH DQG WKH
LQFUHPHQWDOZRUNWKDWZLOOEHILQDQFHGXQGHUWKH
$FWLRQ3ODQ&RVWHIIHFWLYHSULRULW\SURJUDPPHV
IRULPPHGLDWHLPSOHPHQWDWLRQDQGRWKHUVWREH
3URSHUW\ 5LJKWV ,35 KHOG E\ FRPSDQLHV LQ WKH
LQGXVWULDOL]HG FRXQWULHV ,Q VXFK FDVHV WKH
DFTXLVLWLRQRIWKHWHFKQRORJ\KDVWREHIDFLOLWDWHG
E\DSSURSULDWHILQDQFLQJPHFKDQLVPV
 
%$1*/$'(6+ &/,0$7( &+$1*( 675$7(*< $1' $&7,21 3/$1

$11(; %&&6$3 3523*5$00(6

7KHPH 7)RRG6HFXULW\6RFLDO3URWHFWLRQDQG+HDOWK
3URJUDPPH 3 ,QVWLWXWLRQDO FDSDFLW\ IRU UHVHDUFK WRZDUGV FOLPDWH UHVLOLHQW FXOWLYDUV DQG WKHLUGLVVHPLQDWLRQ
3 'HYHORSPHQW RI FOLPDWH UHVLOLHQW FURSSLQJ V\VWHPV
3 $GDSWDWLRQ DJDLQVW GURXJKW
3 $GDSWDWLRQ LQ ILVKHULHV VHFWRU
3 $GDSWDWLRQ LQ OLYHVWRFN VHFWRU
3 $GDSWDWLRQ LQ KHDOWK VHFWRU
3 :DWHU DQG VDQLWDWLRQ SURJUDPPH LQ FOLPDWH YXOQHUDEOH DUHDV
3 /LYHOLKRRG SURWHFWLRQ LQ HFRORJLFDOO\ IUDJLOH DUHDV
3 /LYHOLKRRG SURWHFWLRQ RI YXOQHUDEOH VRFLRHFRQRPLF JURXSV LQFOXGLQJ ZRPHQ
7KHPH 7 &RPSUHKHQVLYH 'LVDVWHU 0DQDJHPHQW
3URJUDPPH 3 ,PSURYHPHQW RI IORRG IRUHFDVWLQJ DQG HDUO\ ZDUQLQJ
3 ,PSURYHPHQW RI F\FORQH DQG VWRUP VXUJH ZDUQLQJ
3 $ZDUHQHVV UDLVLQJ DQG SXEOLF HGXFDWLRQ WRZDUGV FOLPDWH UHVLOLHQFH
3 5LVN PDQDJHPHQW DJDLQVW ORVV RQ LQFRPH DQG SURSHUW\
7KHPH 7  ,QIUDVWUXFWXUH
3URJUDPPH 3 5HSDLU DQG PDLQWHQDQFH RI H[LVWLQJ IORRG HPEDQNPHQWV
3 5HSDLU DQG PDLQWHQDQFH RI F\FORQH VKHOWHUV
3 5HSDLU DQG PDLQWHQDQFH RI H[LVWLQJ FRDVWDO SROGHUV
3 ,PSURYHPHQW RI XUEDQ GUDLQDJH
3 $GDSWDWLRQ DJDLQVW )ORRGV
3 $GDSWDWLRQ DJDLQVW WURSLFDO F\FORQHV DQG VWRUP VXUJHV
3 3ODQQLQJ DQG GHVLJQ RI ULYHU WUDLQLQJ ZRUNV
3 3ODQQLQJGHVLJQDQGLPSOHPHQWDWLRQRIUHVXVFLWDWLRQRIULYHUDQGNKDOVWKURXJK
GUHGJLQJDQGGHVLOWDWLRQZRUN
7KHPH 7 5HVHDUFK DQG .QRZOHGJH 0DQDJHPHQW
3URJUDPPH 3 (VWDEOLVKPHQW RI D FHQWUH IRU NQRZOHGJH PDQDJHPHQW DQG WUDLQLQJ RQ FOLPDWH FKDQJH
3 &OLPDWH FKDQJH PRGHOOLQJ DW QDWLRQDO DQG VXEQDWLRQDO OHYHOV
3 3UHSDUDWRU\ VWXGLHV IRU DGDSWDWLRQ DJDLQVW VHD OHYHO ULVH
3 0RQLWRULQJ RI HFRV\VWHP DQG ELRGLYHUVLW\ FKDQJHV DQG WKHLU LPSDFWV
3 0DFURHFRQRPLF DQG VHFWRUDO HFRQRPLF LPSDFWV RI FOLPDWH FKDQJH
3 0RQLWRULQJRILQWHUQDODQGH[WHUQDOPLJUDWLRQRIDGYHUVHO\LPSDFWHGSRSXODWLRQDQG
SURYLGLQJVXSSRUWWRWKHPWKURXJKFDSDFLW\EXLOGLQJIRUWKHLUUHKDELOLWDWLRQLQQHZHQYLURQPHQW
3 0RQLWRULQJ RI LPSDFWRQYDULRXVLVVXHVUHODWHGWRPDQDJHPHQWRIWRXULVPLQ%DQJODGHVK
DQGLPSOHPHQWDWLRQLQSULRULW\DFWLRQSODQ
7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW
3URJUDPPH 3 ,PSURYHG HQHUJ\ HIILFLHQF\ LQ SURGXFWLRQ DQG FRQVXPSWLRQ RI HQHUJ\
3 *DV H[SORUDWLRQ DQG UHVHUYRLU PDQDJHPHQW
3 'HYHORSPHQW RI FRDO PLQHV DQG FRDO ILUHG SRZHU VWDWLRQV
3 5HQHZDEOH HQHUJ\ GHYHORSPHQW
3 /RZHU HPLVVLRQ IURP DJULFXOWXUDO ODQG
3 0DQDJHPHQW RI XUEDQ ZDVWH
3 $IIRUHVWDWLRQ DQG UHIRUHVWDWLRQ SURJUDPPH
3 5DSLGH[SDQVLRQRIHQHUJ\VDYLQJGHYLFHVHJ&RPSDFW)ORUHVFHQW/DPSV&)/
3 (QHUJ\DQG:DWHU(IILFLHQF\LQ%XLOW(QYLURQPHQW
3 ,PSURYHPHQWLQHQHUJ\FRQVXPSWLRQSDWWHUQLQWUDQVSRUWVHFWRUDQGRSWLRQVIRUPLWLJDWLRQ
7KHPH 7 &DSDFLW\ %XLOGLQJ DQG ,QVWLWXWLRQDO 6WUHQJWKHQLQJ
3URJUDPPH 3 5HYLVLRQ RI VHFWRUDO SROLFLHV IRU FOLPDWH UHVLOLHQFH
3 0DLQVWUHDPLQJ FOLPDWH FKDQJH LQ QDWLRQDO VHFWRUDO DQG VSDWLDO GHYHORSPHQWSURJUDPPHV
3 6WUHQJWKHQLQJ KXPDQ UHVRXUFH FDSDFLW\
3 6WUHQJWKHQLQJ JHQGHUFRQVLGHUDWLRQLQFOLPDWH FKDQJH PDQDJHPHQW
3 6WUHQJWKHQLQJ LQVWLWXWLRQDO FDSDFLW\ IRU FOLPDWH FKDQJH PDQDJHPHQW
3 0DLQVWUHDPLQJFOLPDWHFKDQJHLQWKH0HGLD
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 ,QVWLWXWLRQDO FDSDFLW\ DQG UHVHDUFK WRZDUGV FOLPDWH UHVLOLHQW FXOWLYDUV DQG WKHLU
GLVVHPLQDWLRQ

2EMHFWLYH 7R EXLOG WKH LQVWLWXWLRQDO FDSDFLW\ RI UHVHDUFK FHQWUHV DQG H[SHUWLVH RI UHVHDUFKHUV
WR GHYHORS FOLPDWH UHVLOLHQW FXOWLYDUV RI IRRG DQG RWKHU FURSV

-XVWLILFDWLRQ
*OREDOZDUPLQZJZLOODOWHUWKHDPELHQWFRQGLWLRQVXQGHUZKLFKFURSVJURZ,QLWLDOO\
KLJKHUWHPSHUDWXUHVDQGLQFUHDVHGFRQFHQWUDWLRQVRIFDUERQGLR[LGHPD\LQFUHDVH
IRRGJUDLQ\LHOGVGXHWRLQFUHDVHGSKRWRV\QWKHVLV+RZHYHUWHPSHUDWXUHVDUH
SUHGLFWHGWRLQFUHDVHE\RYHU&DQGFDUERQGLR[LGHFRQFHQWUDWLRQVWRH[FHHG
PRUHWKDQSSPZKLFKZLOOUHGXFH\LHOGVRIFXUUHQWFXOWLYDUVRIFHUHDOVVXFKDV
ULFHDQGZKHDW,QDGGLWLRQLQFUHDVHGGURXJKWVIORRGVDQGVDOLQHLQWUXVLRQLQ
GLIIHUHQWSDUWVRIWKHFRXQWU\ZLOODOVRFDXVHFURSORVVHV

5HVHDUFKZRUNKDVVWDUWHGDW%55,%$5,DQGRWKHUUHVHDUFKFHQWUHVXQGHU1$56WR
GHYHORSFXOWLYDUVDGDSWHGWROLNHO\IXWXUHFOLPDWLFFRQGLWLRQV7KHUHLVDQXUJHQW
QHHGWRGHYHORSWKHUHVHDUFKFDSDFLW\RIWKHVHLQVWLWXWHVDQGVFLHQWLVWVDQGWR
SURYLGHEHWWHUUHVHDUFKIDFLOLWLHV

7KHLPSDFWRIFOLPDWHFKDQJHRQPDQ\RWKHUIRRGHJSRWDWRHVDQGQRQIRRG

FURSVHJMXWHLVODUJHO\XQNQRZQ5HVHDUFKPXVWEHLQLWLDWHGWRXQGHUVWDQG
WKHVHLPSDFWVDQGILQGRXWKRZWRPLQLPLVHDGYHUVHFKDQJHV

,WWDNHV\HDUVWREUHHGQHZFXOWLYDUVFHUWLI\WKHPDQGUHOHDVHWRWKHIDUPHUV
WKURXJKWKHH[WHQVLRQV\VWHP,QYLHZRIWKLVLQGLJHQRXVYDULHWLHVZLOOEHVFUHHQHGWR
LGHQWLI\WKRVHWKDWFDQZLWKVWDQGDWOHDVWSDUWLDOO\WKHDGYHUVHLPSDFWVRIFOLPDWH
FKDQJHRQ\LHOGV$IWHUSDUWLFLSDWRU\ILHOGWULDOVWKH\ZLOOEHGLVVHPLQDWHGWR
IDUPHUV

$FWLRQV $ &ROOHFWLRQDQGFRQVHUYDWLRQRIORFDOLPSURYHGFXOWLYDUVFKDUDFWHUL]DWLRQDQGWKHLU

 GRFXPHQWDWLRQ
$ 5HVHDUFKWRGHYHORSFOLPDWHUHVLOLHQWYDULHWLHVRIULFHLHKHDWGURXJKWVDOLQLW\
 DQGVXEPHUJHQFHWROHUDQWYDULHWLHV
$ 5HVHDUFKWRGHYHORSFOLPDWHUHVLOLHQWLHKHDWGURXJKWVDOLQLW\DQGVXEPHUJHQFH
 WROHUDQWFXOWLYDUVRIZKHDWDQGRWKHUIRRGDQGQRQIRRGFURSVLQFOXGLQJYHJHWDEOHV
$ )LHOG WULDOV DQG GLVVHPLQDWLRQVRIWKHFOLPDWHUHVLOLHQWORFDOLPSURYHGFXOWLYDUV DQG
 WKH QHZO\GHYHORSHG YDULHWLHV WRIDUPHUVLQ SDUWQHUVKLS ZLWK WKH '$(DQG1*2V
$ 6WUHQJWKHQLQJ WKH FDSDFLW\ RI 1$56LQVWLWXWHVUHVHDUFKIDFLOLWLHVDQG 6FLHQWLVWV DQG
 7HFKQLFLDQVWR XQGHUWDNH WKHZRUN

7LPHOLQH 0HGLXP WR /RQJ WHUP

5HVSRQVLELOLW\
%55, %$5, DQG RWKHU 1$56 RUJDQLVDWLRQ
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 'HYHORSPHQW RI FOLPDWH UHVLOLHQW FURSSLQJ V\VWHPVDQGSURGXFWLRQWHFKQRORJLHV

2EMHFWLYH 7KH GHYHORSPHQW RI FOLPDWH UHVLOLHQW FURSSLQJ V\VWHPV DSSURSULDWH WR GLIIHUHQW

DJURFOLPDWLF UHJLRQV DQG VXEUHJLRQV

-XVWLILFDWLRQ ,W LV SUHGLFWHG WKDW FOLPDWH FKDQJH ZLOO UHVXOW LQ LQFUHDVLQJO\ IUHTXHQW DQG VHYHUH
IORRGV LQ WKH FHQWUDO SDUW RI WKH FRXQWU\ IODVK IORRGV LQ WKH QRUWKHDVWHUQ DQG
HDVWHUQ SDUWV RI %DQJODGHVK DGMDFHQW WR 0HJKDOD\D DQG 7ULSXUD DQG GURXJKWV DQG
ORZ DQG HUUDWLF UDLQIDOO LQ QRUWKZHVWHUQ DQG ZHVWHUQ %DQJODGHVK 6DOLQLW\ LV OLNHO\
WR LQFUHDVH LQ WKH VRXWKZHVWHUQ DQG VRXWK FHQWUDO SDUWV RI WKH FRXQWU\ UDLQIDOO LV
OLNHO\ WR EHFRPH PRUH HUUDWLF LQ WKH &KLWWDJRQJ +LOOV DQG WKH FRDVWDO LVODQGV ZLOO
IDFH LQFUHDVHG VDOLQLW\ DQG F\FORQLF ZHDWKHU

7KHVH FKDQJHV ZLOO UHTXLUH IDUPHUV WR PRGLI\ WKHLU FXUUHQW FURSSLQJ V\VWHPV RU
FKDQJH WR DOWHUQDWLYH V\VWHPV 5HVHDUFK LV QHHGHG WR GHYHORS DQG ILHOG WHVW
DOWHUQDWLYH V\VWHPV DGDSWHG WR OLNHO\ IXWXUH FRQGLWLRQV VR WKDW FKRLFHV DUH
DYDLODEOH IRU IDUPHUV DV FOLPDWLF FRQGLWLRQV FKDQJH 7KH DVVRFLDWHG VHHG VXSSO\ DQG
H[WHQVLRQ PHFKDQLVPV DOVR KDYH WR EH GHYHORSHG

5HVHDUFK DQG GHYHORSPHQW ZLOO EH XQGHUWDNHQ E\ %55, %$5, DQG RWKHU QDWLRQDO
UHVHDUFK LQVWLWXWHV DQG WKHLU UHJLRQDO UHVHDUFK VWDWLRQV VHH 73 LQ SDUWQHUVKLS
ZLWK VHOHFWHG 1*2V

$FWLRQV $ ,GHQWLI\ DJURHFRQRPLF ]RQHV YXOQHUDEOHWRFOLPDWHFKDQJH

$ 'HYHORS FOLPDWH UHVLOLHQW FURSSLQJ SDWWHUQV VXLWHG WR GLIIHUHQW UHJLRQV RI WKH
FRXQWU\
$ )LHOG OHYHO WULDOV RI FOLPDWH UHVLOLHQW FURSSLQJ SDWWHUQV DQG DVVRFLDWHG ZDWHU
PDQDJHPHQW V\VWHPV
$ 'HYHORS RUJDQL]HGVHHG SURGXFWLRQDQGVXSSO\ V\VWHPDQG H[WHQVLRQ PHFKDQLVPV
$ ,GHQWLI\GHYHORSSURGXFWLRQWHFKQRORJLHVLHPXOFKLQJZDWHUPDQDJHPHQW
SRO\WXQQHOVUDLVHGEHGVHWFIRUFURSSURGXFWLRQLQWKHYXOQHUDEOHDUHDV
$ 'HYHORS HDUO\ZDUQLQJDQGZHDWKHUIRUHFDVWLQJIRUFURSSURGXFWLRQDJDLQVWGLVHDVHV
LQVHFWVGURXJKWIORRGVWRUPVWLGDOVXUJHVHWF

7LPHOLQH 0HGLXP DQG ORQJ WHUP

5HVSRQVLELOLW\ 0LQLVWU\ RI $JULFXOWXUH 1$56

 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 $GDSWDWLRQ DJDLQVW GURXJKWVDOLQLW\VXEPHUJHQFHDQGKHDW

2EMHFWLYH 7R GHYHORS GURXJKW PDQDJHPHQW RSWLRQV IRU IDUPHUV

-XVWLILFDWLRQ &OLPDWH FKDQJH LV OLNHO\ WR UHVXOW LQ LQFUHDVLQJO\ HUUDWLF UDLQIDOO SDWWHUQV DQG
GURXJKWV

7UDGLWLRQDOO\ WKH PDLQ ULFH FURS ZDV AMAN  ZKLFK ZDV SODQWHG LQ WKH PRQVRRQ DQG
KDUYHVWHG LQ WKH SRVWPRQVRRQ SHULRG ,W FXUUHQWO\ DFFRXQWV IRU RYHU  RI ULFH
SURGXFWLRQ 6LQFH AMAN FDQ VXIIHU IURP GURXJKW VWUHVV IDUPHUV GHYHORSHG
LQGLJHQRXV PHWKRGV RI VXSSOHPHQWDU\ LUULJDWLRQ 6LQFH ,QGHSHQGHQFH PDMRU
LUULJDWLRQ SURMHFWV HJ WKH *. 3URMHFW DQG 7HHVWD %DUUDJH ZHUH GHYHORSHG WR
SURYLGH VXSSOHPHQWDU\ LUULJDWLRQ LQ WKH ZRUVW DIIHFWHG SDUWV RI WKH FRXQWU\

)DUPHUV LQ WKHVH DUHDV DUH FXUUHQWO\ DUH UHSRUWLQJ LQFUHDVLQJO\ IUHTXHQW GURXJKW
DIIHFWLQJ WKH AMAN FURS :LWK FOLPDWH FKDQJH WKHVH FRQGLWLRQV DUH OLNHO\ WR EH
H[DFHUEDWHG 7KH GHYHORSPHQW RI DSSURSULDWH DGDSWLYH PHDVXUHV FRPELQLQJ UREXVW
LQGLJHQRXV DQG QHZ FXOWLYDUV 73 QHZ FURSSLQJ V\VWHPV 73 DQG LPSURYHG
ZDWHU PDQDJHPHQW SUDFWLFHV QHHG WR EH GHYHORSHG WHVWHG DQG GLVVHPLQDWHG WR
IDUPHUV

$FWLRQV $ 3UHSHUDWLRQRI*,6 PDSV RI DUHDV YXOQHUDEOH WR GURXJKWIORRGDQGVDOLQLW\

$ 'HYHORS DQG WHVW DGDSWLYH PHDVXUHV LQ GURXJKWVDOLQHVXEPHUJHQFHDQGKRWDQG
FROGSURQH DUHDV E\ DSSURSULDWH FXOWLYDUV FURSSLQJ SDWWHUQVDQG ODQG DQG ZDWHU
PDQDJHPHQW SUDFWLFHVDQG HIIHFWLYH GLVVHPLQDWLRQ WR IDUPHUV

7LPHOLQH 6KRUW WR PHGLXP WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI $JULFXOWXUH DQG 0LQLVWU\ RI :DWHU 5HVRXUFHV LQ DVVRFLDWLRQ ZLWK WKH
H[WHQVLRQ VHUYLFH
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 $GDSWDWLRQ LQ WKH ILVKHULHV VHFWRU

2EMHFWLYH 7KH GHYHORSPHQW RI DGDSWDWLRQ VWUDWHJLHV LQ WKH ILVKHULHV VHFWRU

-XVWLILFDWLRQ &OLPDWH FKDQJH LV OLNHO\ WR DGYHUVHO\ DIIHFW IUHVKZDWHU DQG PDULQH ILVKHULHV LQ
%DQJODGHVK HJ WKH VSDZQLQJ RI IUHVKZDWHU VSHFLHV ZDWHU WHPSHUDWXUHV LQ SRQGV
DQG LQODQG ILVKHULHV DUH OLNHO\ WR LQFUHDVH VDOLQH ZDWHU LV OLNHO\ WR H[WHQG IXUWKHU
LQODQG LQ WKH VRXWK RI WKH FRXQWU\ ZKLFK ZLOO FKDQJH WKH DTXDWLF HFRV\VWHP DQG
SURGXFWLRQ RI ILVK LQ WKLV ]RQH DQG WXUEXOHQW DQG URXJK ZHDWKHU DORQJ WKH FRDVW
PD\ SUHYDLO IRU ORQJHU GXUDWLRQV DGYHUVHO\ LPSDFWLQJ RQ WKH OLYHOLKRRGV RI
ILVKHUPHQ

,W LV LPSRUWDQW WKDW WKHVH SRWHQWLDO LPSDFWV DUH LGHQWLILHG DQG UHVHDUFK DQG
PDQDJHPHQW VWUDWHJLHV GHYHORSHG WHVWHG DQG PDGH UHDG\ LQ DQWLFLSDWLRQ RI
FOLPDWHUHODWHG FKDQJHV

$FWLRQV $ $VVHVV SRWHQWLDO WKUHDWV WR ILVK VSDZQLQJ DQG JURZWK RI ILVK LQ WKH IUHVKZDWHU
ILVKHULHV VHFWRU DQG GHYHORS DGDSWLYH PHDVXUHV LQFOXGLQJ SRQG ILVKHULHV ULYHU
EDVHG FDJH DTXDFXOWXUH HWF
$ $VVHVV SRWHQWLDO WKUHDWV WR ILVK VSDZQLQJ DQG JURZWK RI ILVK LQ WKH FRDVWDO ]RQH DQG
EUDFNLVK ZDWHU DQG GHYHORS DSSURSULDWH DGDSWLYH PHDVXUHV DQG FXOWXUDO SUDFWLFHV
$ $VVHVV SRWHQWLDO WKUHDWV WR WKH PDULQH ILVK VHFWRU DQG GHYHORS DGDSWLYH PHDVXUHV
$ $VVHVV SRWHQWLDO LPSDFWV RQ WKH VKULPS VHFWRU DQG GHYHORS DSSURSULDWH DGDSWLYH
PHDVXUHV DQG FXOWXUDO SUDFWLFHV
$ $VVHVV SRWHQWLDO LPSDFWV RQ WKH PLJUDWLRQRIILVKDQG+LOVDILVKDQGGHYHORS
DSSURSULDWHDGDSWLYHPHDVXUHV
7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI )LVKHULHV DQG /LYHVWRFN 'HSDUWPHQW RI )LVKHULHV %DQJODGHVK)LVKHULHV
5HVHDUFK,QVWLWXWH LQ DVVRFLDWLRQ ZLWK VHOHFWHG 1*2V
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73
7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 $GDSWDWLRQ LQ OLYHVWRFN VHFWRU

2EMHFWLYH 'HYHORSPHQW RI RSWLRQV IRU DGDSWDWLRQ LQ WKH OLYHVWRFN VHFWRU

-XVWLILFDWLRQ +LJKHU DPELHQW WHPSHUDWXUHV DV ZHOO DV IORRGV DQG GURXJKWV DUH OLNHO\ WR DGYHUVHO\
DIIHFW SRXOWU\ DQG OLYHVWRFN +LJKHU WHPSHUDWXUHV ZLOO OLPLW WKH JURZWK RI FKLFNHQ
EURLOHUV DQG RWKHU ELUGV VXFK DV SLJHRQV DQG GXFNV *UD]LQJ ODQGV PD\ QR ORQJHU EH
SURGXFWLYH GXH WR ULVLQJ VDOLQLW\ LQ FRDVWDO DUHDV DQG GURXJKWV +LJKHU WHPSHUDWXUHV
DQG KXPLGLW\ PD\ DIIHFW DQLPDO KHDOWK WKURXJK WKH PRUH UDSLG EUHHGLQJ RI SDUDVLWHV
DQG EDFWHULD 7KHVH FKDQJHV DUH OLNHO\ WR VHULRXVO\ DIIHFW WKH OLYHOLKRRGV RI OLYHVWRFN
IDUPHUV DQG WKH DYDLODELOLW\ RI OLYHVWRFN SURGXFWV LQ %DQJODGHVK

,W LV QHFHVVDU\ WR XQGHUVWDQG WKHVH SURFHVVHV GHYHORS DSSURSULDWH DGDSWLYH

PHDVXUHV ILHOG WHVW WKHP DQG PDNH WKHP DYDLODEOH WR OLYHVWRFN DQG SRXOWU\
IDUPHUV PDQ\ RI ZKRP DUH DPRQJ WKH SRRUHVW DQG PRVW YXOQHUDEOH SHRSOH LQ WKH
FRXQWU\

$FWLRQV $ $VVHVV SRWHQWLDO WKUHDWV WR WKH SRXOWU\ VHFWRU GHYHORS DGDSWLYH PHDVXUHV DQG
GLVVHPLQDWH DPRQJ IDUPHUV
$  $VVHVV SRWHQWLDO WKUHDWV WR WKH OLYHVWRFN VHFWRU GHYHORS DGDSWLYH PHDVXUHV DQG
GLVVHPLQDWH DPRQJ IDUPHUV
$ 6WUHQJWKHQ YHWHULQDU\ VHUYLFHV V\VWHPV LQFOXGLQJ DQLPDO KHDOWK PHDVXUHV LQ OLJKW RI
WKH OLNHO\ LQFUHDVH LQ GLVHDVH SUHYDOHQFH

7LPHOLQH
0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI )LVKHULHV DQG /LYHVWRFN 'HSDUWPHQW RI /LYHVWRFN %DQJODGHVK /LYHVWRFN
5HVHDUFK &HQWUH LQ DVVRFLDWLRQ ZLWK VHOHFWHG 1*2V
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 $GDSWDWLRQ LQ KHDOWK VHFWRU

2EMHFWLYH 5HVHDUFK DQG PRQLWRULQJ RQ WKH LPSDFWV RI FOLPDWH FKDQJH RQ GLVHDVH SDWWHUQV DQG
WKH VRFLDO DQG HFRQRPLF FRVWV RI GLVHDVH 'HYHORS DGDSWDWLYH PHDVXUHV

-XVWLILFDWLRQ 7KH WK ,3&& UHSRUW LQGLFDWHV WKDW RQH RI WKH PDMRU LPSDFWV RI JOREDO ZDUPLQJ DQG
FOLPDWH FKDQJH ZLOO EH DQ LQFUHDVH LQ YHFWRU ERUQH GLVHDVHV HJ PDODULD DQG
GHQJXH IHYHU 5HFHQW VWXGLHV E\ WKH ,QWHUQDWLRQDO &HQWUH IRU 'LDUUKRHDO 'LVHDVH
5HVHDUFK %DQJODGHVK ,&''5% GHPRQVWUDWH WKDW GLDUUKRHDO GLVHDVHV DUH RQ WKH
LQFUHDVH ZKLFK WKH\ DWWULEXWH SDUWO\ WR LQFUHDVHG IORRGLQJ DQG GUDLQDJH FRQJHVWLRQ
7KLV LV H[SHFWHG WR JHW ZRUVH ZLWK FOLPDWH FKDQJH *OREDO ZDUPLQJ ZLOO DOVR UDLVH
WHPSHUDWXUHV LQ WKH VXPPHU VHDVRQ LQFUHDVLQJ WKH LQFLGHQFH RI KHDW VWURNHV ZKLFK
FRXOG EH IXUWKHU DJJUDYDWHG E\ VKRUWDJHV RI GULQNLQJ ZDWHU 3RVVLEOH RWKHU WKUHDWV
IURP RWKHU YHFWRU ERUQH GLVHDVHV VXFK DV .DODD]DU DQG W\SKRLG KDYH \HW WR EH
DVVHVVHG

,W LV LPSRUWDQW WKDW WKH PRQLWRULQJ RI GLVHDVHV OLQNHG WR FOLPDWH FKDQJH LV XSJUDGHG

DQG UHVHDUFK XQGHUWDNHQ WR GHYHORS DGDSWDWLYH VWUDWHJLHV WKDW FDQ EH SXW LQ SODFH
DV QHHGV HPHUJH

$FWLRQV $ 5HVHDUFK RQ WKH LPSDFW RI FOLPDWH FKDQJH RQ KHDOWK LQFOXGLQJ WKH LQFLGHQFH RI
PDODULD DQG GHQJXH GLDUUKRHDO GLVHDVHV KHDWVWURNH DQG WKH FRVW WR VRFLHW\ RI
LQFUHDVHG PRUWDOLW\ PRUELGLW\ DQG FRQVHTXHQW IDOO LQ SURGXFWLYLW\
$ 'HYHORS DGDSWLYH VWUDWHJLHV DJDLQVW RXWEUHDNV RI PDODULD GHQJXH DQG RWKHU YHFWRU
ERUQH GLVHDVHV DQG LQYHVW LQ SUHYHQWLYH DQG FXUDWLYH PHDVXUHV DQG IDFLOLWLHV
$ 'HYHORS DGDSWLYH VWUDWHJLHV DJDLQVW GLDUUKRHDO DQG RWKHU GLVHDVHV ZKLFK PD\
LQFUHDVH GXH WR FOLPDWH FKDQJH DQG LQYHVW LQ SUHYHQWLYH DQG FXUDWLYH PHDVXUHV DQG
IDFLOLWLHV

7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI +HDOWK DQG )DPLO\ :HOIDUH LQ DVVRFLDWLRQ ZLWK UHVHDUFK FHQWUHV
,'&&5% DQG RWKHUV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 :DWHU DQG VDQLWDWLRQ SURJUDPPH IRU FOLPDWH YXOQHUDEOH DUHDV

2EMHFWLYH (QVXUH DGHTXDWH ZDWHU VXSSOLHV DQG LPSURYHG VDQLWDWLRQ

-XVWLILFDWLRQ 2QH RI WKH 0'* WDUJHWV XQGHU 0'*  DLPV WR KDOYH E\  WKH SURSRUWLRQ RI
SHRSOH ZLWKRXW VXVWDLQDEOH DFFHVV WR VDIH GULQNLQJ ZDWHU DQG EDVLF VDQLWDWLRQ

$WWDLQPHQW RI WKLV 0'* WDUJHW LQ %DQJODGHVK ZLOO EH VHULRXVO\ FKDOOHQJHG E\ FOLPDWH

FKDQJH $FFHVV WR GULQNLQJ ZDWHU ZKLFK LV DOUHDG\ D SUREOHP LQ SDUWV RI WKH FRXQWU\
HJ DUHDV ZLWK VDOLQH VXUIDFH DQG JURXQGZDWHU GURXJKWSURQH DUHDV LV OLNHO\ WR
JHW ZRUVH 6DQLWDWLRQ ZLOO EH DIIHFWHG E\ SRRU GUDLQDJH DQG IORRGLQJ LQ PDQ\ SDUWV RI
WKH FRXQWU\

,Q %DQJODGHVK WKH LQFUHDVLQJ SUHYDOHQFH RI GURXJKWV ZLOO DGYHUVHO\ DIIHFW

DYDLODELOLW\ RI VXUIDFH ZDWHU DQG GULQNLQJ ZDWHU IURP KDQG WXEHZHOOV DQG ZLOO UHTXLUH
LQYHVWPHQW LQ GHHS VHW JURXQG ZDWHU WHFKQRORJLHV FRQVHUYDWLRQ RI ZDWHU DQG
UDLQIDOO KDUYHVWLQJ LQ VRPH UHJLRQV $OVR LQ WKH FRDVWDO ]RQH DV VHD OHYHO ULVHV
VDOLQLW\ ZLOO PRYH LQODQG PDNLQJ VDIH GULQNLQJ DYDLODELOLW\ D ELJ FKDOOHQJH 8UEDQ
DUHDV DUH OLNHO\ WR EH HVSHFLDOO\ YXOQHUDEOH WR UHGXFHG VXUIDFH DQG JURXQGZDWHU
DYDLODELOLW\

7KHUH LV D QHHG WR PRQLWRU WKH DYDLODELOLW\ RI GULQNLQJ ZDWHU ERWK TXDQWLW\ DQG
TXDOLW\ DQG WR GHYHORS VWUDWHJLHV WR LQFUHDVH VXSSOLHV RI GULQNLQJ ZDWHU DQG WR
SURYLGH LPSURYHG VDQLWDWLRQ VHUYLFHV DV FOLPDWH FKDQJH EHFRPHV HYLGHQW

,Q WKH PHDQWLPH HYHU\ HIIRUW VKRXOG EH PDGH WR HQVXUH WKDW SHRSOH FXUUHQWO\ OLYLQJ
LQ GURXJKWSURQH DQG VDOLQH DIIHFWHG DUHDV DUH SURYLGHG ZLWK DGHTXDWH VHUYLFHV

$FWLRQV $ 0RQLWRU FKDQJHV LQ ZDWHU TXDOLW\ DQG TXDQWLW\ DYDLODEOH IRU GULQNLQJ DQG IRUHFDVW
IXWXUH FKDQJHV GXH WR FOLPDWH FKDQJH
$ 3ODQ IRU DQG LQYHVW LQ DGGLWLRQDO ZDWHU VXSSO\ DQG VDQLWDWLRQ IDFLOLWLHV

7LPHOLQH 6KRUW PHGLXP DQG ORQJ WHUP

5HVSRQVLELOLW\ 0LQLVWU\RI/RFDO*RYHUQPHQW5XUDO'HYHORSPHQWDQG&RRSHUDWLYHDQGYDULRXVORFDO
JRYHUQPHQWERGLHVDQG1*2VLQUXUDODQGXUEDQ%DQJODGHVK
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 )RRG 6HFXULW\ 6RFLDO 3URWHFWLRQ DQG +HDOWK

3URJUDPPH 3 /LYHOLKRRG SURWHFWLRQ LQ HFRORJLFDOO\ IUDJLOH DUHDV

2EMHFWLYH 7R DGGUHVV LQ D WLPHO\ DQG HIIHFWLYH ZD\ DGYHUVH LPSDFWV RQ OLYHOLKRRGV LQ

HFRORJLFDOO\ YXOQHUDEOH DUHDV

-XVWLILFDWLRQ &OLPDWH FKDQJH ZLOO LPSDFW XSRQ WKH UHJLRQV LQ %DQJODGHVK LQ GLIIHUHQW ZD\V 7KRVH
ZKLFK DUH DOUHDG\ HFRORJLFDOO\ IUDJLOH PD\ EHFRPH PRUH VR GXH WR FKDQJHV LQ
WHPSHUDWXUH DQG PRUH HUUDWLF UDLQIDOO SDWWHUQV &OLPDWH UHODWHG GLVDVWHUV PD\
GHVWUR\ SHRSOH
V KRPHV DQG LQFRPHV DQG HPSOR\PHQW FRXOG EH WKUHDWHQHG LQ PDQ\
DUHDV 6WUDWHJLHV ZLOO EH QHHGHG WR KHOS SHRSOH LQ WKHVH UHJLRQV EHFRPH FOLPDWH
UHVLOLHQW DQG HQVXUH WKHLU HFRQRPLF DQG VRFLDO ZHOOEHLQJ 6SHFLDO DWWHQWLRQ ZLOO EH
SDLG WR LPSDFWV RQ ZRPHQ DQG FKLOGUHQ $IIHFWHG UHJLRQV DUH OLNHO\ WR LQFOXGH WKH
FRDVWDO ]RQH ULYHU FKDUV KLOO\ DUHDV HJ WKH +LOO 7UDFWV DQG LQODQG ZHWODQG DUHDV

$FWLRQV $ &RPSUHKHQVLYH DQG SDUWLFLSDWRU\ SODQQLQJ DQG LQYHVWPHQW IRU FOLPDWH UHVLOLHQFH
DJDLQVW HURVLRQ LQ LQFRPH HPSOR\PHQW DQG KXPDQ KHDOWK LQ FRDVWDO FKDU KLOO\ DQG
ZHWODQG UHJLRQV

7LPHOLQH 6KRUW PHGLXP DQG ORQJ WHUP

5HVSRQVLELOLW\ 9DULRXV OLQH PLQLVWULHV LQ FROODERUDWLRQ ZLWK 1*2V

 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7)RRG6HFXULW\6RFLDO3URWHFWLRQDQG+HDOWK

3URJUDPPH 3/LYHOLKRRGSURWHFWLRQRIYXOQHUDEOHVRFLRHFRQRPLFJURXSVLQFOXGLQJZRPHQ

2EMHFWLYH (QVXUHHTXLWDEOHDQGVXVWDLQDEOHGHYHORSPHQWRIDOOYXOQHUDEOHVRFLRHFRQRPLF
JURXSV

-XVWLILFDWLRQ &OLPDWHFKDQJHZLOOLPSDFWRQGLIIHUHQWVRFLRHFRQRPLFJURXSVLQ%DQJODGHVKLQ
YDULRXV ZD\V 7KH SRRU DQG WKH QRQSRRU ZLOO EH DIIHFWHG GLIIHUHQWO\ EHFDXVH RI
WKHLU FRQWUDVWLQJ DVVHW EDVHV DQG LQFRPHV $PRQJ WKH SRRU KRZHYHU VRPH JURXSV
ZLOO EH PRUH YXOQHUDEOH WKDQ RWKHUV 7KH PRVW YXOQHUDEOH PD\ QHHG VXSSRUW WR
PDLQWDLQ WKHLU OLYHOLKRRGV 73 ZLOO IRFXV RQ SHRSOH OLYLQJ LQ HFRORJLFDOO\ IUDJLOH
DUHDV 7KLV SURJUDPPH ZLOO DGGUHVV WKH QHHGV RI WKH SRRU DQG YXOQHUDEOH DFURVV WKH
FRXQWU\

*URXSV WKDW ZLOO EH FRQVLGHUHG LQFOXGH ILVKLQJ IDPLOLHV ZKR ZLOO EH DIIHFWHG E\
FKDQJHV LQ IUHVKZDWHU DQG PDULQH HFRV\VWHPV SRRU DQG PDUJLQDO IDUPHUV ZKR ZLOO
EH DW JUHDWHU ULVN IURP FURS IDLOXUH WKDQ EHWWHURII IDUPHUV DQG ZLOO QHHG VSHFLDO
DWWHQWLRQ WR SURWHFW WKHP IURP LQFRPH ORVVHV GXH WR FOLPDWH FKDQJH SHRSOH ZKR
DUH SK\VLFDOO\ DQG PHQWDOO\ FKDOOHQJHG ZKR PD\ QHHG VSHFLDO SURWHFWLRQ :RPHQ
DQG FKLOGUHQ DUH JHQHUDOO\ PRUH YXOQHUDEOH WKDQ PHQ HVSHFLDOO\ LQ SRRU KRXVHKROGV
DQG DOO SURJUDPPHV ZLOO WKXV SULRULWLVH WKH QHHGV RI ZRPHQ DQG FKLOGUHQ

,Q VRPH FDVHV WKH SURJUDPPH ZLOO SURYLGH SURWHFWLRQ DJDLQVW ORVV RI HPSOR\PHQW
DQG LQFRPH LQ RWKHUV KHDOWK QHHGV PD\ EH PRUH DFXWH DQG IRU VRPH VRFLDO
ZHOIDUH PHDVXUHV WKURXJK WUDQVIHU SURJUDPPHV PD\ EH QHFHVVDU\ ,W ZLOO EH
QHFHVVDU\ WR DVVHVV WKH QHHGV RI YXOQHUDEOH JURXSV VHSDUDWHO\ DQG WDLORU
SURJUDPPHV RI VXSSRUW DFFRUGLQJO\

$FWLRQV $&RPSUHKHQVLYHDQGSDUWLFLSDWRU\SODQQLQJDQGLQYHVWPHQWWRSURWHFWWKHOLYHOLKRRGV
LQFRPHHPSOR\PHQWKHDOWKRIJURXSVZKRZLOOEHHVSHFLDOO\VHYHUHO\LPSDFWHG
E\FOLPDWHFKDQJHHJPDUJLQDODQGVPDOOIDUPHUVILVKHUPHQSDUWLFXODUO\WKRVH
ILVKLQJLQHVWXDULHVDQGWKHVHDVWKHLQILUPDQGHOGHUO\SHRSOHZLWKSK\VLFDODQG
PHQWDOGLVDELOLWLHV
$&RPSUHKHQVLYHVWXG\RIWKHLPSDFWRIFOLPDWHFKDQJHRQZRPHQDQGJHQGHU
UHODWLRQVDQGWKHGHYHORSPHQWRIUHFRPPHQGDWLRQVWRDGGUHVVWKHVHLQDOODFWLRQV
XQGHUWKH%&&6$3

7LPHOLQH 6KRUWPHGLXPDQGORQJWHUP

5HVSRQVLELOLW\ 9DULRXVOLQHPLQLVWULHVLQFOXGLQJ0LQLVWU\RI$JULFXOWXUH0LQLVWU\RI)RRGDQG'LVDVWHU
0DQDJHPHQW0LQLVWU\RI:RPHQDQG&KLOGUHQ$IIDLUV0LQLVWU\RI+HDOWKDQG)DPLO\
:HOIDUHLQSDUWQHUVKLSZLWK1*2V
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7&RPSUHKHQVLYH'LVDVWHU0DQDJHPHQW

3URJUDPPH 3,PSURYHPHQWRIIORRGIRUHFDVWLQJDQGHDUO\ZDUQLQJV\VWHPV

2EMHFWLYH ,PSURYHPHQWRIWKHH[LVWLQJIORRGIRUHFDVWLQJDQGHDUO\ZDUQLQJV\VWHPVE\
LQFUHDVLQJOHDGWLPHVDQGVWUHQJWKHQLQJGLVVHPLQDWLRQPHFKDQLVPV

-XVWLILFDWLRQ %DQJODGHVKLVKLJKO\UHJDUGHGIRULWVFRPSHWHQFHLQIORRGIRUHFDVWLQJDQGHDUO\
ZDUQLQJV\VWHPV&XUUHQWO\WKH)ORRG)RUHFDVWLQJDQG:DUQLQJ&HQWUH)):&RIWKH
%DQJODGHVK:DWHU'HYHORSPHQW%RDUG%:'%LVVXHVIORRGOHYHOVIRUHFDVWVIRU
DQGKRXUV7KHVHIRUHFDVWVDUHUHOHDVHGWKURXJKHPDLOVDVZHOODVSODFHGRQD
ZHEVLWH+RZHYHUWKHUHLVVFRSHIRULPSURYHPHQW

'LVVHPLQDWLRQ7KH FXUUHQW SUDFWLFH RI UHOHDVLQJ ZDUQLQJV LQ WHUPV RI ULYHU VWDJH

DUH QRW HDVLO\ XQGHUVWRRG E\ ORFDO FRPPXQLWLHV ZKLOH WKH DEVHQFH RI GLJLWDO
HOHYDWLRQ PRGHOV '(0 PDNHV LW GLIILFXOW IRU IORRG IRUHFDVWLQJ PRGHOOHUV WR UHODWH
ULYHU VWDJH WR OLNHO\ IORRG OHYHOV DW GLIIHUHQW ORFDWLRQV LQ WKH FRXQWU\VLGH 73
EHORZ ZRXOG GHYHORS D '(0 IRU DUHDV YXOQHUDEOH WR IORRGV ,W LV LPSRUWDQW WKDW WKLV
LV XVHG E\ IORRG IRUHFDVWHUV WRJHWKHU ZLWK LQIRUPDWLRQ RQ ULYHU VWDJHV WR LPSURYH
IRUHFDVWV IRU IORRGSODLQ FRPPXQLWLHV

/HDG WLPHV ,W ZRXOG EH KHOSIXO WR FRPPXQLWLHV DQG WKH DXWKRULWLHV WR KDYH ORQJHU
UDQJH IRUHFDVWV HYHQ WKRXJK WKH\ DUH QRW DOZD\V UHOLDEOH )):& KDV WKH FDSDFLW\ WR
PDNH  GD\ IRUHFDVWV ,W VKRXOG EH HQFRXUDJHG WR GR VR DQG WKH XVHIXOQHVV RI WKH
QHZ IRUHFDVWV DVVHVVHG

$FWLRQV
$ 5HYLHZ RI WKH K\GURPHWHRURORJLFDO GDWD QHWZRUN DQG WKH VHWWLQJ XS RI WHOHPHWULF
VWDWLRQV
$ ,PSURYHPHQW LQ GLVVHPLQDWLRQ RI ZDUQLQJV E\ D FRPELQLQJ ULYHU VWDJH DQG '(0
LQIRUPDWLRQ DQG E PDNLQJ  GD\ IRUHFDVWV
$ $ZDUHQHVV EXLOGLQJ SURJUDPPHV DW FRPPXQLW\ OHYHO RQ ZDUQLQJV SURGXFHG DQG
UHOHDVHG E\ )):&

7LPHOLQH ,PPHGLDWH DQG FRQWLQXLQJ

5HVSRQVLELOLW\
0LQLVWU\ RI :DWHU 5HVRXUFHV DQG LWV YDULRXV DJHQFLHV FLYLO VRFLHW\ RUJDQL]DWLRQVDFWLYH
LQ GLVDVWHU PDQDJHPHQW DQG PHGLD
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &RPSUHKHQVLYH 'LVDVWHU 0DQDJHPHQW

3URJUDPPH 3 ,PSURYHPHQW RI F\FORQH DQG VWRUPVXUJH ZDUQLQJ

2EMHFWLYH ,PSURYHPHQWV LQ F\FORQH DQG VWRUP VXUJH ZDUQLQJV DQG GLVVHPLQDWLRQ

-XVWLILFDWLRQ 2QH RI WKH PDLQ LPSDFWV RI JOREDO ZDUPLQJ PD\ EH DQ LQFUHDVH LQ F\FORQLF ZHDWKHU
DQG VWRUPVXUJHV 'LVVHPLQDWLRQ RI F\FORQH DQG VWRUPVXUJH ZDUQLQJV LV GRQH DW
FRPPXQLW\ OHYHO WKURXJK WKH &\FORQH 3UHSDUHGQHVV 3URJUDPPH &33 9ROXQWHHUV RI
WKH %DQJODGHVK 5HG &UHVFHQW 6RFLHW\ %'5&6 7KH &33 PDQDJHG E\ WKH %'5&6 DQG
VXSSRUWHG E\ WKH 0LQLVWU\ RI )RRG DQG 'LVDVWHU 0DQDJHPHQW FRYHUV WKH &KLWWDJRQJ
FRDVWDO EHOW DV ZHOO DV WKH VRXWKFHQWUDO SDUW RI %DQJODGHVK 'XULQJ &\FORQH 6LGU
JDSV LQ WKH &33 QHWZRUN ZHUH H[SRVHG 7KHUH LV WKXV DQ XUJHQW QHHG WR UHYLHZ WKH
V\VWHP DQG PDNH LPSURYHPHQWV ZKHUH QHFHVVDU\

,Q UHFHQW \HDUV WKH %D\ RI %HQJDO KDV EHFRPH PRUH WXUEXOHQW ZLWK :DUQLQJ 1R
DQQRXQFHG PRUH IUHTXHQWO\ WKDQ EHIRUH 7UDGLWLRQDOO\ URXJK VHDV ZHUH H[SHULHQFHG
GXULQJ SUHPRQVRRQ DQG SRVWPRQVRRQ SHULRGV 1RZ WXUEXOHQW VHDV RFFXU YLUWXDOO\
URXQG WKH \HDU 5RXJK VHDV DGYHUVHO\ DIIHFW WKH ILVKLQJ SUDFWLFHV DQG OLYHOLKRRGV RI
ILVKHUPHQ 7KH HQWLUH FRDVWOLQH RI %DQJODGHVK LV YXOQHUDEOH WR F\FORQHV DQG
DVVRFLDWHG VWRUPVXUJHV

%DQJODGHVK IROORZV D VHW RI ZDUQLQJ QXPEHUV UDQJLQJ IURP   WKDW ZDV RULJLQDOO\
GHVLJQHG IRU PDULWLPH VKLSSLQJ DQG LQODQG QDYLJDWLRQ 7R PDNH LW PRUH UHOHYDQW WR
FRPPXQLWLHV LW KDV UHFHQWO\ EHHQ UHYLVHG 7KH QHZO\ UHYLVHG ZDUQLQJ V\VWHP LV \HW
WR EH SXW LQ WR SUDFWLFH $ PDMRU FDPSDLJQ PXVW EH ODXQFKHG WR LQWURGXFH WKH QHZ
ZDUQLQJ V\VWHP

$FWLRQV
$ 5HYLHZ RI WKH SUHVHQW F\FORQH DQG VWRUPVXUJH ZDUQLQJ V\VWHPV DQG PDNH
 LPSURYHPHQWV ZKHUH QHFHVVDU\
$ ,PSURYHPHQW LQ F\FORQH DQG VWRUPVXUJH ZDUQLQJ GLVVHPLQDWLRQ WR ORFDO
 FRPPXQLWLHV WKURXJK DZDUHQHVV FDPSDLJQV
7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\
0LQLVWU\ RI )RRG DQG 'LVDVWHU 0DQDJHPHQW %DQJODGHVK 5HG &UHVFHQW 6RFLHW\ 1*2V
DQG &%2V FRPPXQLW\ EDVHG RUJDQLVDWLRQV ZRUNLQJ LQ WKH FRDVWDO DUHDV DQG PHGLD
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &RPSUHKHQVLYH 'LVDVWHU 0DQDJHPHQW

3URJUDPPH 3 $ZDUHQHVV UDLVLQJ DQG SXEOLF HGXFDWLRQ WRZDUGV FOLPDWH UHVLOLHQFH

2EMHFWLYH &RPPXQLW\ EDVHG GLVDVWHU SUHSDUHGQHVV DQG LPSURYHG UHVLOLHQFH

-XVWLILFDWLRQ $ PDMRU UHVXOW RI FOLPDWH FKDQJH LV OLNHO\ WR EH DQ LQFUHDVH LQ FOLPDWHUHODWHG

QDWXUDO GLVDVWHUV 7KHUH PD\ EH DQ LQFUHDVH LQ WKH PDJQLWXGH DQG LQWHQVLW\ RI
IORRGV DJULFXOWXUDO GURXJKWV VWRUPVXUJHV DQG F\FORQHV DQG RWKHU GLVDVWHUV HJ
FRDVWDO DQG ULYHU EDQN HURVLRQ DQG ODQGVOLGHV WULJJHUHG E\ KHDY\ UDLQIDOO DQG
GUDLQDJH FRQJHVWLRQ LQ XUEDQ DUHDV

%DQJODGHVK KDV GHYHORSHG D FRPSUHKHQVLYH DQG HIIHFWLYH GLVDVWHU PDQDJHPHQW

V\VWHP 7KH 6WDQGLQJ 2UGHU RQ 'LVDVWHU SURYLGHV JXLGDQFH WR ORFDO FRPPXQLWLHV DQG
WKH DXWKRULWLHV DW YDULRXV OHYHOV RQ WKHLU UROHV DQG UHVSRQVLELOLWLHV GXULQJ DQG
LPPHGLDWHO\ DIWHU D GLVDVWHU KDV VWUXFN ,W DOVR OD\V RXW SURFHGXUHV IRU DOHUWLQJ ORFDO
FRPPXQLWLHV ZKHQ D GLVDVWHU VXFK DV D IORRG F\FORQH RU VWRUPVXUJH LV OLNHO\ WR
RFFXU

'HVSLWH WKLV WKHUH LV D QHHG WR UDLVH DZDUHQHVV DPRQJ FRPPXQLWLHV DQG RIILFLDOV DW
DOO OHYHOV RQ WKH OLNHO\ LQFUHDVHG LQFLGHQFH RI QDWXUDO GLVDVWHUV 6RPH DUHDV ZKHUH
XUJHQW DWWHQWLRQ PD\ EH JLYHQ LQFOXGH VKHOWHU PDQDJHPHQW VHDUFK DQG UHVFXH DQG
KHDOWK LVVXHV GXULQJ DQG DIWHU GLVDVWHUV

$FWLRQV $ $ZDUHQHVV UDLVLQJ SURJUDPPHV DPRQJ ORFDO FRPPXQLWLHV DERXW LPSDFWV RI &OLPDWH
 &KDQJH
$ 7UDLQ ORFDO FRPPXQLWLHV RQ VKHOWHU PDQDJHPHQW VHDUFK DQG UHVFXH DQG KHDOWK
 LVVXHV UHODWHG WR GLVDVWHU PDQDJHPHQW

7LPHOLQH ,PPHGLDWH DQG FRQWLQXLQJ

5HVSRQVLELOLW\
0LQLVWU\ RI )RRG DQG 'LVDVWHU 0DQDJHPHQW %DQJODGHVK 5HG &UHVFHQW 6RFLHW\ 1*2V
&%2V ZRUNLQJ LQ WKH FRDVWDO DUHDV PHGLD SULQW DQG HOHFWURQLF
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &RPSUHKHQVLYH 'LVDVWHU 0DQDJHPHQW

3URJUDPPH 3 5LVN PDQDJHPHQW DJDLQVW ORVV RI LQFRPH DQG SURSHUW\

2EMHFWLYH 7R SXW LQ SODFH DQ HIIHFWLYH LQVXUDQFH V\VWHP IRU ULVN PDQDJHPHQW DJDLQVW ORVV RI
LQFRPH DQG SURSHUW\

-XVWLILFDWLRQ &OLPDWH FKDQJH LV OLNHO\ WR UHVXOW LQ ORVV RI LQFRPH DQG SURSHUW\ WR SHRSOH
KRXVHKROGV HQWHUSULVHV DQG LQIUDVWUXFWXUH &RPPXQLWLHV DQG IDPLOLHV WU\ WR FOLPDWH
SURRI LQ VHYHUDO ZD\V HJ UDLVLQJ WKH PRXQGV RQ ZKLFK WKH\ EXLOG WKHLU KRXVHV WR
SURWHFW WKHP IURP IORRGV DQG WKH XVH RI DGDSWHG YDULHWLHV RI FURSV ,Q DGGLWLRQ
LQVXUDQFH DJDLQVW FOLPDWHUHODWHG ORVVHV PD\ DOVR EH DQ HIIHFWLYH ULVN UHGXFWLRQ
PHFKDQLVP 7KH *RYHUQPHQW ZLOO SDUWQHU ZLWK WKH LQVXUDQFH LQGXVWU\ DQG 1*2V WR
GHYHORS QHZ LQVXUDQFH SURGXFWV IRU SHRSOH KRXVHKROGV DQG HQWHUSULVHV DJDLQVW
FOLPDWH UHODWHG ORVVHV

$FWLRQV $ 'HYLVH DQ HIIHFWLYH LQVXUDQFH VFKHPH IRU ORVVHV LQ SURSHUW\ GXH WR FOLPDWH FKDQJH
 LPSDFWV
$ 'HYHORS DQ HIIHFWLYH LQVXUDQFH VFKHPH IRU ORVV RI LQFRPH IURP YDULRXV VRXUFHV WR
 SHUVRQV KRXVHKROGV DQG HQWHUSULVHV
$ 3LORW WKH LQVXUDQFH VFKHPHV DQG LI VXFFHVVIXO HVWDEOLVK LQVXUDQFH V\VWHPV IRU
 ORZHULQJ ULVN RI DGYHUVH LPSDFW RI FOLPDWH FKDQJH
7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\ 0LQLVWU\ RI )LQDQFH DQG RWKHU OLQH PLQLVWULHV DQG WKH LQVXUDQFH VHFWRU DQG 1*2V
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 3 5HSDLU DQG PDLQWHQDQFH RI H[LVWLQJ IORRG HPEDQNPHQWV

2EMHFWLYH (QVXUH FRQWLQXHG IORRG SURWHFWLRQ E\ UHSDLULQJ DQG UHKDELOLWDWLQJ H[LVWLQJ IORRG
HPEDQNPHQWV

-XVWLILFDWLRQ (DUWKHQ HPEDQNPHQWV KDYH EHHQ FRQVWUXFWHG E\ WKH %DQJODGHVK :DWHU 'HYHORSPHQW
%RDUG %:'% DORQJ PRVW PDMRU DQG PHGLXPVL]HG ULYHUV LQ WKH FRXQWU\ DQG DOVR
VRPH PLQRU ULYHUV 7KH\ DUH WKH NH\ VWUXFWXUDO FRPSRQHQW RI WKH IORRG PDQDJHPHQW
V\VWHP LQ WKH FRXQWU\

7KH KHLJKWV RI WKH HPEDQNPHQWV ZHUH GHVLJQHG EDVHG RQ UHFHQW PDMRU IORRGV
DQGRU VWDWLVWLFDO DQDO\VLV RI SDVW ULYHU VWDJH GDWD )RU HPEDQNPHQWV DORQJ PDMRU
ULYHUV D  \HDU UHWXUQ SHULRG ZDV XVHG )RU SURWHFWLRQ RI 'KDND FLW\ WKH OHYHO RI
VDIHW\ ZDV D  \HDU IORRG

0DQ\ RI WKHVH HPEDQNPHQWV DUH LQ SRRU VKDSH GXH WR ODFN RI SURSHU PDLQWHQDQFH
,Q PDQ\ SODFHV WKH HPEDQNPHQWV DUH FXW E\ ORFDO SHRSOH WR GUDLQ ZDWHU IURP WKH
ODQG LQWR WKH ULYHUV $OWKRXJK WKHVH JDSV DUH ILOOHG LQ DJDLQ WKHVH SRLQWV UHPDLQ
YXOQHUDEOH WR EUHDFKHV ,Q PDQ\ SODFHV WKH DSSXUWHQDQW VWUXFWXUHV VXFK DV VOXLFHV
DQG UHJXODWRUV QR ORQJHU IXQFWLRQ SURSHUO\

(PEDQNPHQWV KDYH SURYLGHG VHFXULW\ IURP IORRGLQJ DQG DV D UHVXOW PDQ\ SHRSOH
KDYH PRYHG LQWR SURWHFWHG IORRGSODLQ DUHDV 7KH WUDGLWLRQDO DSSURDFK RI EXLOGLQJ
KRPHV RQ UDLVHG PRXQGV KDV PRUH RU OHVV EHHQ DEDQGRQHG )DUPHUV JR IRU KLJK
\LHOGLQJ YDULHW\ RI FURSV EHFDXVH RI WKH VHFXULW\ SURYLGHG E\ WKH HPEDQNPHQW DQG
DVVRFLDWHG GUDLQDJH V\VWHPV *LYHQ WKLV LW LV YHU\ LPSRUWDQW WR UHKDELOLWDWH H[LVWLQJ
ULYHU IORRG HPEDQNPHQWV VR WKDW WKH\ DUH IXOO\ IXQFWLRQDO DQG DEOH WR SURYLGH WKH
OHYHO RI VHFXULW\ IRU ZKLFK WKHVH ZHUH FRQVWUXFWHG


$FWLRQV $ $VVHVV WKH FRQGLWLRQ RI DOO H[LVWLQJ IORRG HPEDQNPHQWV DQG SUHSDUH *,6 PDSV


$ ,PPHGLDWH UHSDLU DQG UHKDELOLWDWLRQ RI H[LVWLQJ HPEDQNPHQWV DQG DSSXUWHQDQW

 VWUXFWXUHV WDNLQJ IXWXUH IRUHFDVW IORRG OHYHOV LQWR DFFRXQW
7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\ 0LQLVWU\ RI :DWHU 5HVRXUFHV DQG LWV DJHQFLHV

 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 3 5HSDLU DQG PDLQWHQDQFH RI H[LVWLQJ F\FORQH VKHOWHUV

2EMHFWLYH 7R PDNH H[LVWLQJ F\FORQH VKHOWHUV VDIH DQG IXQFWLRQDO

-XVWLILFDWLRQ 7KH HQWLUH FRDVWDO EHOW RI %DQJODGHVK LV YXOQHUDEOH WR F\FORQHV DQG VWRUP VXUJHV
6RPH RI WKH PDMRU F\FORQLF VWRUP VXUJHV LQ   DQG  H[FHHGHG  PHWHUV
([LVWLQJ FRDVWDO HPEDQNPHQWV FDQ EH RYHUWRSSHG E\ KLJK VWRUP VXUJHV ZKLFK DUH
OLNHO\ WR EHFRPH PRUH IUHTXHQW ZLWK JOREDO ZDUPLQJ 0RVW RI WKH F\FORQH VKHOWHUV
FRQVWUXFWHG LQ  DQG  UHTXLUH XUJHQW UHSDLU DQG PDLQWHQDQFH 0DQ\ RI WKH
VKHOWHUV EXLOW DIWHU  F\FORQH DOVR QHHG UHSDLU

7KH F\FORQH VKHOWHUV LQ %DQJODGHVK DUH FRQVLGHUHG D PDMRU VXFFHVV DPRQJ GLVDVWHU
PDQDJHPHQW SURIHVVLRQDOV +RZHYHU GXULQJ &\FORQH 6LGU PDQ\ SHRSOH ZKR VRXJKW
UHIXJH LQ F\FORQH VKHOWHUV ZHUH VFDUHG IRU WKHLU VDIHW\ EHFDXVH RI WKH SRRU FRQGLWLRQ
RI WKH VWUXFWXUHV $V DQRWKHU VWRUP VXUJH PD\ KLW WKH FRDVW RI %DQJODGHVK DQ\WLPH
DQG DW DQ\ ORFDWLRQ F\FORQH VKHOWHUV DORQJ WKH HQWLUH FRDVWDO EHOW PXVW EH XUJHQWO\
PDGH IXOO\ IXQFWLRQDO DQG RSHUDWLRQDO

$FWLRQV $ 6XUYH\ DQG SUHSDUH *,6 EDVHG PDSV VKRZLQJ WKH ORFDWLRQ RI DOO F\FORQH VKHOWHUV RQ
 WKH FRDVWDO EHOW RI %DQJODGHVK DQG D GDWDEDVH GHVFULELQJ WKHLU SUHVHQW VWDWXV DQG
 UHSDLU QHHGV
$ 3ODQ IRU WKH LPPHGLDWH UHSDLU DQG ZKHUH QHFHVVDU\ UHGHVLJQ RI F\FORQH VKHOWHUV
 LQFOXGLQJ WKHLU DSSURDFK URDGV
$ 5HSDLU DQG UHFRQVWUXFWLRQ RI F\FORQH VKHOWHUV DQG DSSURDFK URDGVWUDFNV
$ $ZDUHQHVV EXLOGLQJ LQ FRPPXQLWLHV DQG HVWDEOLVKPHQW RI &RPPXQLW\ 6KHOWHU
 &RPPLWWHHV DQG UXQQLQJ RI WUDLQLQJ SURJUDPPHV LQFOXGLQJ UHJXODU UHVFXH DQG
 UHKDELOLWDWLRQ SUDFWLFH
7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\ 0LQLVWU\ RI )RRG DQG 'LVDVWHU 0DQDJHPHQW %DQJODGHVK 5HG &UHVFHQW 6RFLHW\ SULYDWH
VHFWRUXQGHU WKHLU &65 SURJUDPPHV DQG 1*2V
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 3 5HSDLU DQG PDLQWHQDQFH RI H[LVWLQJ FRDVWDO SROGHUV

2EMHFWLYH 5HSDLU DQG UHFRQVWUXFW WKH H[LVWLQJ SROGHUV LQ WKH FRDVWDO EHOW RI WKH %DQJODGHVK

-XVWLILFDWLRQ 7KH FRDVWDO EHOW RI %DQJODGHVK IDFHV VHYHUH F\FORQLF ZHDWKHU DQG VWRUP VXUJHV DW
UHJXODU LQWHUYDOV ,W LV SUHGLFWHG WKDW VXFK QDWXUDO FDODPLWLHV ZLOO KLW WKH FRDVWDO EHOW
ZLWK LQFUHDVLQJ IUHTXHQF\ DQG LQWHQVLW\ 7KH H[SHULHQFH RI &\FORQH 6LGU LQ 
VKRZV WKDW GDPDJH ZDV WKH JUHDWHVW LQ XQSURWHFWHG DUHDV DQG ZKHUH WKH VWRUP
VXUJH KDG EUHDFKHG WKH G\NH HJ LQ 6RXWKNKDOL RI 6KDUDQNKROD 7KDQD

)RU RYHU  \HDUV PXFK RI WKH FRDVWOLQH RI %DQJODGHVK KDV EHHQ SURWHFWHG E\ RYHU
 NPV RI HDUWKHQ HPEDQNPHQWV LQ WKH IRUP RI SROGHUV $ UHFHQW VWXG\ E\ &(*,6
VKRZV WKDW PRVW RI WKH SROGHUV QHHG XUJHQW UHSDLU 3HRSOH OLYLQJ EHKLQG WKHVH
HPEDQNPHQWV HQMR\ VHFXULW\ IURP KLJK VSULQJ WLGHV DQG KDYH EHHQ DEOH WR LPSURYH
WKHLU DJULFXOWXUDO SUDFWLFHV $OWKRXJK VXFK G\NHV FDQQRW SURWHFW DJDLQVW KLJK
F\FORQLF VWRUP VXUJHV WKH\ DUH FULWLFDO WR WKH OLYHOLKRRGV DQG VDIHW\ RI SHRSOH LQ WKH
UHJLRQ

$FWLRQV $ 6XUYH\ RI WKH FRQGLWLRQ RI FRDVWDO SROGHUV DQG SUHSDUDWLRQ RI *,6 PDSV ZLWK SUHVHQW
 FRYHUDJH RI DUHDV SURWHFWHG E\ WKHVH SROGHUV
$ 3ODQ GHVLJQ DQG FRVW LPPHGLDWH UHSDLUV RI H[LVWLQJ G\NHV EDVHG RQ IXWXUH SURMHFWHG
 VHD OHYHO ULVHV DQG VWRUP VXUJHV
$ 5HFRQVWUXFWLRQ DQG UHSDLU RI SROGHUVHPEDQNPHQWV WR GHVLJQ KHLJKW DQG VHFWLRQ
7LPHOLQH
0HGLXP WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI :DWHU 5HVRXUFHV DQG LWV DJHQFLHV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 3 ,PSURYHPHQW RI XUEDQ GUDLQDJH

2EMHFWLYH 7R SUHYHQW GUDLQDJH FRQJHVWLRQ DQG ZDWHU ORJJLQJ WKDW PD\ UHVXOW IURP KHDY\
UDLQIDOO LQ XUEDQ DUHDV

-XVWLILFDWLRQ 7KH FXUUHQW VWRUP GUDLQDJH V\VWHPV RI WKH PDMRU FLWLHV ZHUH GHVLJQHG XVLQJ
KLVWRULFDO UDLQIDOO GDWD ,W LV OLNHO\ WKDW WKHVH GHVLJQ FDSDFLWLHV ZLOO EH H[FHHGHG LQ
IXWXUH 2QH RI WKH PDMRU LPSDFWV RI FOLPDWH FKDQJH LV OLNHO\ WR EH DQ LQFUHDVH LQ WKH
QXPEHU RI HSLVRGHV RI VKRUW GXUDWLRQ DQG KHDY\ UDLQIDOO 7KLV ZLOO UHVXOW LQ ZDWHU
ORJJLQJ GXH WR GUDLQDJH FRQJHVWLRQ

0DMRU FLWLHV ZLOO EH LQFUHDVLQJO\ YXOQHUDEOH 3DUWV RI 'KDND DUH DOUHDG\ ZDWHUORJJHG
UHJXODUO\ DV WKH GHVLJQHG GUDLQDJH FDSDFLW\ RI WKH FLW\
V VHZHU V\VWHP LV QRW DEOH WR
FRSH ZLWK WKH ORDG 7KLV KDV RFFXUUHG D QXPEHU RI WLPHV LQ UHFHQW \HDUV DQG WKH
IUHTXHQF\ LV LQFUHDVLQJ ,Q -XO\  &KLWWDJRQJ H[SHULHQFHG XQXVXDOO\ KHDY\
UDLQIDOO WKDW WULJJHUHG D VHULHV RI ODQGVOLGHV DQG D PDMRU SDUW RI WKH FLW\ ZDV
ZDWHUORJJHG

,Q H[LVWLQJ FLWLHV WKH GUDLQDJH FDSDFLW\ RI WKH VHZHU V\VWHP PXVW EH LPSURYHG WR
SUHYHQW PDMRU ZDWHU ORJJLQJ ,Q QHZ XUEDQ DUHDV DGHTXDWH VHZHUV PXVW EH GHVLJQHG
DQG FRQVWUXFWHG WR WDNH DFFRXQW RI WKH OLNHO\ LPSDFWV RI FOLPDWH FKDQJH

$FWLRQV
$ $VVHVV WKH GUDLQDJH FDSDFLW\ RI PDMRU FLWLHV 'KDND &KLWWDJRQJ 5DMVKDKL .KXOQD
 DQG LQYHVWLJDWH VWUXFWXUDO DQG QRQVWUXFWXUDO FDXVHV RI ZDWHU ORJJLQJ ZLWKLQ WKHFLWLHV
 DQG WKHLU LPPHGLDWH VXUURXQGLQJV XVLQJ K\GURG\QDPLF PRGHOV
$ $VVHVV WKH GUDLQDJH FDSDFLW\ RI VHOHFWHG ROG GLVWULFW WRZQV &RPLOOD 0\PHQVLQJK
 6\OKHW %DULVDO HWF DQG LQYHVWLJDWH VWUXFWXUDO DQG QRQVWUXFWXUDO FDXVHV RI ZDWHU
 ORJJLQJ ZLWKLQ WKH FLWLHV DQG WKHLU LPPHGLDWH VXUURXQGLQJV
$ 'HVLJQ DQG LQYHVW LQ LPSURYHPHQWV LQ WKH GUDLQDJH FDSDFLW\ RI WKH PDMRU FLWLHV
$ 'HVLJQ DQG LQYHVW LQ LPSURYHPHQWV LQ WKH GUDLQDJH FDSDFLW\ RI VHOHFWHG WRZQV
7LPHOLQH 0HGLXP WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI /RFDO *RYHUQPHQW5XUDO 'HYHORSPHQW DQG&RRSHUDWLYHZLWK WKH /RFDO
*RYHUQPHQW(QJLQHHULQJ 'HSDUWPHQW 'KDND :$6$ &KLWWDJRQJ :$6$
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 3 $GDSWDWLRQ DJDLQVW IORRGV

2EMHFWLYH 7R PDNH IORRG SURQH DUHDV PRUH UHVLOLHQW

-XVWLILFDWLRQ 2QH RI WKH PDLQ LPSDFWV RI FOLPDWH FKDQJH ZLOO EH WKH LQFUHDVHG IUHTXHQF\ DQG
LQWHQVLW\ GXUDWLRQ DQG OHYHO RI IORRGV 7KH PDLQ ULYHU IORRGV LQ %DQJODGHVK DUH WKH
UHVXOW RI WKUHH PDMRU IDFWRUV D UDLQIDOO DFURVV WKH ERUGHU LQ $VVDP QRUWKHUQ ,QGLD
DQG 1HSDO ULYHU ZDWHU OHYHOV LQ YXOQHUDEOH DUHDV SULRU WR KHDY\ UDLQIDOO DQG F
RXWIDOO FRQGLWLRQV LH OHYHO RI WKH FRDVWDO ZDWHU DW &KDQGSXU

7KH IORRGV LQ     DQG  HLWKHU H[FHHGHG WKH SUHYLRXV KLJKHVW
ZDWHU OHYHO RU URVH YHU\ FORVH WR VXFK OHYHOV +LJK IORRGV DUH OLNHO\ WR EH PRUH
FRPPRQ ZLWK FOLPDWH FKDQJH 7KH UG,3&& UHSRUW SUHGLFWHG WKDW PRQVRRQ UDLQIDOO
FRXOG LQFUHDVH E\ DW OHDVW RQHWKLUG RYHU WKH QH[W ILIW\ \HDUV 7KLV ZRXOG UHVXOW LQ
WKH RYHUWRSSLQJ RI H[LVWLQJ IORRG HPEDQNPHQWV 73

,Q YLHZ RI WKLV K\GURORJLFDO PRGHOOLQJ RI WKH %UDKPDSXWUD*DQJHV0HJKQD EDVLQ IRU

GLIIHUHQW FOLPDWH FKDQJH VFHQDULRV LV QHHGHG WR HVWLPDWH IXWXUH ULYHU IORZV DQG
IORRG ULVNV %DVHG RQ WKHVH GDWD D SODQ WR XSJUDGH VWUXFWXUDO PHDVXUHV DJDLQVW
OLNHO\ IXWXUH IORRGV FDQ EH PDGH

.H\ QRQVWUXFWXUDO PHDVXUHV IRU IORRG PDQDJHPHQW LQFOXGH IORRG SURRILQJ DQG IORRG
SODLQ ]RQLQJ 2QFH D QHZ IORRG YXOQHUDELOLW\ PDS DQG DVVRFLDWHG 'LJLWDO (OHYDWLRQ
0RGHO LV GHYHORSHG IORRG SURRILQJ PHDVXUHV PD\ EH SODQQHG HVSHFLDOO\ LQ WKH PRVW
YXOQHUDEOH DUHDV LQFOXGLQJFKDUV )ORRG SODLQ ]RQLQJ ZLOO DOVR VXSSRUW VHWWLQJ XS RI
KLJK YDOXH LQIUDVWUXFWXUH VXFK DV SRZHU VWDWLRQV DQG LQGXVWULDO XQLWV LQ VDIH ORFDWLRQV

$FWLRQV $ +\GURORJLFDO PRGHOOLQJ RI WKH %UDKPDSXWUD*DQJHV0HJKQD %DVLQ DJDLQVW IXWXUH

 FOLPDWH FKDQJH VFHQDULRV WR HVWLPDWH IXWXUH IORRG OHYHOV DQG ULVNV LQ %DQJODGHVK
$ 'HYHORS D )ORRG 9XOQHUDELOLW\ 0DS EDVHG RQ IXWXUH SURMHFWHG FOLPDWLF SDUDPHWHUV
$ 3ODQ GHVLJQ DQG FRQVWUXFW IORRG PDQDJHPHQW LQIUDVWUXFWXUH HPEDQNPHQWV DQGRU
 RWKHUV DV DSSURSULDWH LQ OLJKW RI OLNHO\ IXWXUH IORRG OHYHOV
$ )ORRG 3ODLQ =RQLQJ FRUUHVSRQGLQJ WR YDULRXV OHYHOV RI YXOQHUDELOLW\
$ /RQJ WHUP LPSURYHPHQW RI IORRG IRUHFDVWLQJ DQG ZDUQLQJ LQFOXGLQJ LQVWDOODWLRQ RI D
 WHOHPHWULF QHWZRUN DQG ZHDWKHU DQG K\GURORJLFDO 5$'$56 DQG GHYHORSPHQW RI
 'LJLWDO (OHYDWLRQ 0RGHOV '(0
$ 3ODQ DQG LPSOHPHQW QRQVWUXFWXUDO IORRGSURRILQJ PHDVXUHV
7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\ 0LQLVWU\ RI :DWHU 5HVRXUFHV DQG LWV DJHQFLHV0LQLVWU\RI)RRGDQG'LVDVWHU0DQJHPHQW

 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 3 $GDSWDWLRQ DJDLQVW IXWXUH F\FORQHV DQG VWRUPVXUJHV

2EMHFWLYH 3ODQ DQG LPSOHPHQW DQ LQYHVWPHQW SURJUDPPH WR HQVXUH WKDW WKH FRDVWDO DUHD
LQFOXGLQJ DOO LVODQGV DGDSWV WR IXWXUH F\FORQHV DQG VWRUP VXUJHV

-XVWLILFDWLRQ 7KH HQWLUH FRDVWDO EHOW RI %DQJODGHVK LV YXOQHUDEOH WR F\FORQHV DQG VWRUP VXUJHV
8QGHU 73 DQG 73 H[LVWLQJ HPEDQNPHQWV DQG VKHOWHUV ZRXOG EH UHSDLUHG 7KLV
SURJUDPPH ZRXOG SURYLGH IRU SURWHFWLRQ DJDLQVW IXWXUH LQFUHDVHV LQ WURSLFDO
F\FORQHV DQG VWRUP VXUJHV GXH WR FOLPDWH FKDQJH

7R SURWHFW WKH FRDVWDO EHOW DQ H[WHQVLYH QHWZRUN RI SROGHUV KDV DOUHDG\ EHHQ
FRQVWUXFWHG LQ %DQJODGHVK +RZHYHU ZLWK WKH VHD OHYHO ULVHV H[SHFWHG DV D UHVXOW RI
FOLPDWH FKDQJH WKH KHLJKWV RI WKH G\NHV ZLOO QHHG WR EH UDLVHG IXUWKHU $OVR WKHUH
DUH VRPH DGGLWLRQDO ODQGV DQG VPDOO LVODQGV ZKLFK QHHG WR EH SURWHFWHG WKURXJK WKH
FRQVWUXFWLRQ RI QHZ SROGHUV RU H[WHQVLRQ RI H[LVWLQJ RQHV

:LWK VHD OHYHO ULVH GUDLQDJH FRQJHVWLRQ PD\ EHFRPH D PDMRU SUREOHP LQ WKH
SROGHUV 5LYHU OHYHOV ZLOO EH KLJKHU PDNLQJ LW PRUH GLIILFXOW WR GUDLQ ORFDO UDLQIDOO
IURP WKH SROGHUV $OVR WKH FDSDFLW\ RI WKH H[LVWLQJ VOXLFHV DQG UHJXODWRUV PD\ EH
LQVXIILFLHQW 7KHVH ZDWHU PDQDJHPHQW VWUXFWXUHV ZLOO QHHG WR EH DVVHVVHG DQG
UHPHGLDO PHDVXUHV XQGHUWDNHQ ZKHUH QHFHVVDU\

7KH FXUUHQW QHWZRUN RI F\FORQH VKHOWHUV ZLOO DOVR QHHG WR EH UHYLHZHG DQG SODQV
PDGH WR UHSODFH RU UDLVH WKHP DV UHTXLUHG

7KH LPSRUWDQFH RI WKLFN EHOWV RI PDQJURYHV LQ UHGXFLQJ WKH GHVWUXFWLYH FDSDFLW\ RI
VWRUP VXUJHV ZDV GHPRQVWUDWHG GXULQJ &\FORQH 6LGU $Q H[SDQVLRQ RI WKH
JUHHQ
EHOWV
ZRXOG DIIRUG H[WUD SURWHFWLRQ DQG LQFUHDVH OLYHOLKRRGV RSSRUWXQLWLHV IRU WKHSRRU

7KH SRVVLELOLW\ RI
EXLOGLQJ ZLWK QDWXUH
WR LQFUHDVH WKH UDWH RI DFFUHWLRQ ZLOO DOVR EH
WHVWHG DQG LPSOHPHQWHG ZKHUH DSSURSULDWH

$FWLRQV $ $QDO\VLV RI PHWHRURORJLFDO GDWD WR LPSURYH SUHGLFWLRQV RI FKDQJHV LQ WKH SDWWHUQ RI
 F\FORQLF HYHQWV
$ 3ODQQLQJ WR XSJUDGH H[LVWLQJ FRDVWDO SROGHUV DQG DSSXUWHQDQW VWUXFWXUHV LQ WKH
 FRDVWDO UHJLRQ VHH 73
$ 3ODQQLQJ DQG GHVLJQLQJ WR FRQVWUXFW QHZ SROGHUV LQ WKH FRDVWDO EHOW DQG LVODQGV
$ 3ODQ DQG GHYHORS FRDVWDO JUHHQ EHOWV DV D PHDVXUH DJDLQVW VWRUP VXUJH
$ 5HSDLU PDLQWHQDQFH DQG FRQVWUXFWLRQ DV DSSURSULDWH RI F\FORQH VKHOWHUV IRU
 SURWHFWLRQ DJDLQVW VWRUP VXUJH IROORZLQJ 73
7LPHOLQH
0HGLXP WR ORQJ WHUP
5HVSRQVLELOLW\
0LQLVWU\ RI :DWHU 5HVRXUFHV 0LQLVWU\ RI (QYLURQPHQW DQG)RUHVWV 0LQLVWU\ RI )RRG DQG
'LVDVWHU 0DQDJHPHQW
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 3 3ODQQLQJ GHVLJQ DQG FRQVWUXFWLRQ RI ULYHU WUDLQLQJ ZRUNV

2EMHFWLYH 3XW LQ SODFH HIIHFWLYH ULYHU WUDLQLQJ ZRUNV WR FRQWURO ULYHU EDQN HURVLRQ

-XVWLILFDWLRQ &OLPDWH FKDQJH LV OLNHO\ WR LQFUHDVH UDLQIDOO LQ WKH %UDKPDSXWUD*DQJHV0HJKQD

EDVLQ LQ WKH PRQVRRQ VHDVRQ 7KLV ZLOO UHVXOW LQ KLJKHU ULYHU IORZV DQG SRVVLEO\
LQFUHDVHG YHORFLWLHV 7KLV LV OLNHO\ WR FDXVH IXUWKHU LQVWDELOLW\ LQ WKH DOUHDG\ XQVWDEOH
ULYHU V\VWHP +LJKHU UDLQIDOO LQ XSSHU FDWFKPHQWV PD\ DOVR FDXVH LQFUHDVHV LQ
VHGLPHQW PRYHPHQWV 2YHUDOO ULYHU V\VWHPV DUH H[SHFWHG WR EHFRPH PRUH XQVWDEOH
DV D UHVXOW RI FOLPDWH FKDQJH 5LYHU EDQN HURVLRQ LV OLNHO\ WR EHFRPH PRUH IUHTXHQW

$OWKRXJK ULYHU EDQN HURVLRQ LV GLIILFXOW WR SUHGLFW PDWKHPDWLFDO PRGHOOHUV DW &(*,6

KDYH UHFHQWO\ GHYHORSHG SUHGLFWLYH PRGHOV IRU WKH PDMRU ULYHUV (OVHZKHUH SURSHU
SK\VLFDO REVHUYDWLRQ DQG LQWHUSUHWDWLRQ RI JHRPRUSKRORJLFDO PRYHPHQWV ZLOO KHOS XV
WR SUHGLFW DQG WR DOHUW FRPPXQLWLHV DERXW WKH WKUHDW RI ULYHU EDQN HURVLRQ

5LYHU EDQN HURVLRQ KDV VHYHUH LPSDFWV RQ WKH OLYHOLKRRGV RI DIIHFWHG SHRSOH
)DUPHUV ORVH WKHLU DJULFXOWXUDO ODQG DQG FDQ EHFRPH SDXSHUV RYHUQLJKW GXH WR ULYHU
HURVLRQ ,Q WKH HOHYHQ JXLGLQJ SULQFLSOHV RI WKH )ORRG $FWLRQ 3ODQ ULYHU EDQN HURVLRQ
FRQWURO ZDV UHFRPPHQGHG DV D PDMRU HOHPHQW RI ZDWHU PDQDJHPHQW 7KH 1DWLRQDO
:DWHU 3ROLF\ VWURQJO\ VXSSRUWV ULYHU PDQDJHPHQW ZRUN 7KH GLVDVWHU PDQDJHPHQW
FRPPXQLW\ QRZ UHFRJQLVHV ULYHU EDQN HURVLRQ DV RQH RI WKH PRVW VHULRXV QDWXUDO
GLVDVWHUV

%DQJODGHVK LV FULVVFURVVHG E\ DOOXYLDO ULYHUV PDQ\ RI ZKLFK DUH YHU\ DJLOH DQG
HURVLRQ SURQH HJ WKH -DPXQD 3DGPD WKH ORZHU 0HJKQD .XVKLDUD $ULDO .KD ,Q
YLHZ RI WKLV ULYHU WUDLQLQJ ZRUNV VKRXOG EH WDNHQ XS LQ DQ RUJDQL]HG DQG
FRPSUHKHQVLYH IDVKLRQ DV SDUW RI D ORQJ WHUP SURJUDPPH 6LQFH LW LV H[SHQVLYH
ULYHU WUDLQLQJ VKRXOG EH GHVLJQHG EDVHG RQ SURSHU SK\VLFDO DV ZHOO DV K\GURG\QDPLF
PRGHOOLQJ 6HYHUDO FRPSRQHQWV RI WKH )ORRG $FWLRQ 3ODQ IRFXVHG RQ ULYHU WUDLQLQJ
ZRUNV /HVVRQV OHDUQW IURP WKHVH DFWLYLWLHV DQG H[SHULHQFH RI ULYHU WUDLQLQJ ZRUNV DW
WKH +DUGLQJH %ULGJH DQG WKH -DPXQD %ULGJH PD\ SURYLGH JXLGHOLQHV IRU HIIHFWLYH
GXUDEOH DQG VXVWDLQDEOH ULYHU WUDLQLQJ ZRUNV +\GURG\QDPLF PRGHOOLQJ H[HUFLVHV ZLOO
DVVLVW XV LQ HVWDEOLVKLQJ WKH FRVWV RI ULYHU WUDLQLQJ WKDW PD\ UHVXOW IURP FOLPDWH
FKDQJH

$FWLRQV $ 3UHSDUDWLRQ RI *,6 PDSV DQG LGHQWLILFDWLRQ RI HURVLRQ SURQH DUHDV LQFOXGLQJ
PRQLWRULQJ PHFKDQLVPV
$ 3K\VLFDO DQG K\GURG\QDPLF PRGHOOLQJ
$ 'HVLJQ RI ULYHU WUDLQLQJ SURJUDPPH DQG SURMHFWV
$ ([HFXWLRQ RI ULYHU WUDLQLQJ ZRUNV

7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI :DWHU 5HVRXUFHV ZLWK VXSSRUW IURP ,:0 ,:)0 &(*,6 :$532 DQG 55,
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 ,QIUDVWUXFWXUH

3URJUDPPH 33ODQQLQJGHVLJQDQGLPSOHPHQWDWLRQRIUHVXVFLWDWLRQRIWKHQHWZRUNRIULYHUVDQG
NKDOVWKURXJKGUHGJLQJDQGGHVLOWDWLRQZRUN

2EMHFWLYH 7RUHYLYHWKHQHWZRUNVRIULYHUVDQGNKDOVRIWKHFRXQWU\

-XVWLILFDWLRQ 'XHWRFOLPDWHFKDQJHVKRUWGXUDWLRQKHDY\UDLQIDOOHYHQWVDUHOLNHO\WRLQFUHDVH
7KLVZRXOGUHVXOWLQVRLOHURVLRQIURPZDWHUVKHGV&OLPDWHFKDQJHLVDOVROLNHO\WR
UHVXOWLQLQFUHDVHLQRYHUDOOUDLQIDOOLQPRQVRRQPRQWKV7KLVZLOODGGWRVHGLPHQW
ORDGIURPWKHZDWHUVKHGVWKDWZRXOGJHWGHSRVLWHGLQWRWKHFKDQQHOVULYHUVDQG
NKDOV7KHQHWZRUNVRIULYHUVDQGNKDOVLQPRVWSODFHVKDYHDOUHDG\EHHQVLOWHG
XS7KHVLWXDWLRQZLOOEHIXUWKHUDJJUDYDWHGGXHWRFOLPDWHFKDQJH

,WLVHVWLPDWHGWKDWVHGLPHQWORDGRIWKHWZRPDMRUULYHUVRIWKHFRXQWU\QDPHO\
WKH*DQJHVDQGWKH%UDKPDSXWUDLVEHWZHHQELOOLRQWRELOOLRQWRQVDQQXDOO\
6HGLPHQWVPDQDJHPHQWRIWKHVHWZRULYHUVPD\EHWDNHQDVFRPSRQHQWRI73
SODQQLQJGHVLJQDQGFRQVWUXFWLRQRIULYHUWUDLQLQJZRUNV%XWIRUUHYLYDORIDOO
RWKHUPDMRUPHGLXPVL]HGRUVPDOOULYHUVDQGNKDOVDQHIIHFWLYHSURJUDPPHZLOOEH
GHYHORSHG3DUWRIWKLVWDVNPD\EHDFFRPSOLVKHGWKURXJKFRPPHUFLDOGUHGJLQJ
ZRUN:KHUHWKHFKDQQHOVDUHVPDOOPDQXDOODERUZLOOEHDYLDEOHDOWHUQDWLYH,WLV
UHSRUWHGWKDWLQDQFLHQWGD\VLQ%HQJDOWKHULYHUVDQGNKDOVZHUHH[FDYDWHGE\
PDQXDOODERUXQGHUWKHVXSHUYLVLRQRIWKHORFDOYLOODJHFRPPXQLW\

5HVXVFLWDWLRQRIWKHULYHUVZLOOKHOSLQHIIHFWLYHGUDLQDJHRIWKHPRQVRRQJHQHUDWHG
UXQRII$WWKHVDPHWLPHVXUIDFHZDWHUZLOOEHDYDLODEOHDVDVRXUFHRIZDWHUIRU
VXSSOHPHQWDU\LUULJDWLRQ$FRRUGLQDWHGDQGZHOOGHVLJQHGUHYLYDOZLOOVXSSRUWILVK
PLJUDWLRQGXULQJVSDZQLQJVHDVRQFRPHLQDLGRIQDYLJDWLRQDQGDVVLVWVXUYLYDORI
ORFDOHFRV\VWHP7KHVSRLOFRXOGEHXVHGIRUUDLVLQJVHOHFWHGORFDWLRQVHJ
SOD\JURXQGVYLOODJHPDUNHWSODFHVDQGKRPHVWHDGV,QORZO\LQJUHJLRQVWKHVSRLO
ZRXOGEHXVHGWRGHYHORSNDQGDWKDWFDQEHXVHGIRUDJULFXOWXUDODFWLYLWLHVPDLQO\
IRUYHJHWDEOHVLQPRQVRRQPRQWKV)XQGVIRUDGDSWDWLRQFRXOGEHFKDQDOL]HGIRU
WKLVSURSRVHGUHH[FDYDWLRQZRUNWKDWDOVRZRXOGORZHUWKHOHYHORIIORRGZDWHU

7KHSURFHVVRIGHVLOWDWLRQRIVPDOOFKDQQHOVFDQEHOLQNHGXSZLWKYXOQHUDEOHJURXS
IHHGLQJDQGUHOLHIW\SHDFWLYLWLHVWKDWDUHFDUULHGRXWDOORYHUWKHFRXQWU\DOPRVW
HYHU\\HDU,WZLOOEHXVHIXOLIWKHGUHGJLQJDQGGHVLOWDWLRQZRUNLVFDUULHGRXWLQD
V\VWHPDWLFDQGZHOOFRRUGLQDWHGZD\WDNLQJLQWRFRQVLGHUDWLRQWKHWRSRJUDSKLF
ERXQGDU\FRQGLWLRQVDQGSRVVLEOHIORZGLUHFWLRQRIFKDQQHOQHWZRUNRIWKHDUHD

$FWLRQV $ 3UHSDUDWLRQRID*,6EDVHG5LYHU5HVXVFLWDWLRQ0DVWHU3ODQRQWKH7KDQD'HYHORSPHQW

3ODQDQGLGHQWLILFDWLRQRISULRULW\JHRJUDSKLFDUHDV
$ ([HFXWLRQRIWKHGHVLOWDWLRQSODQLQDSKDVHGPDQQHU
$ 'HYHORSPHQWRIDSDUWLFLSDWRU\RSHUDWLRQDQGPDQDJHPHQWSODQ

7LPHOLQH 6KRUWWRPHGLXP

5HVSRQVLELOLW\
0LQLVWU\RI:DWHU5HVRXUFHV%DQJODGHVK:DWHU'HYHORSPHQW%RDUG0LQLVWU\RI/RFDO
*RYHUQPHQW5XUDO'HYHORSPHQWDQG&RRSHUDWLYHWKURXJK8QLRQ3DULVKDG0LQLVWU\RI
)RRGDQG0DQDJHPHQWDQG/RFDO$GPLQLVWUDWLRQ
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 5HVHDUFK DQG .QRZOHGJH 0DQDJHPHQW

3URJUDPPH 3 (VWDEOLVKPHQW RI D FHQWUH IRU UHVHDUFK NQRZOHGJH PDQDJHPHQW DQG WUDLQLQJ RQ
FOLPDWH FKDQJH

2EMHFWLYH 7R LQFUHDVH LQVWLWXWLRQDO DQG KXPDQ FDSDFLW\ RQ UHVHDUFK DQG NQRZOHGJH

PDQDJHPHQW UHODWHG WR FOLPDWH FKDQJH DQG WR WUDLQ VHFWRU SURIHVVLRQDOV

-XVWLILFDWLRQ $OWKRXJK %DQJODGHVK KDV EHHQ LQ WKH IRUHIURQW RI DZDUHQHVV UDLVLQJ RQ DGDSWDWLRQ
DQG RQWKHJURXQG DGDSWDWLRQ UHVHDUFK WKH NQRZOHGJH DQG LQIRUPDWLRQ JHQHUDWHG
UHPDLQV VFDWWHUHG $ FRPSUHKHQVLYH PRYH WRZDUGV DGDSWDWLRQ DQG PLWLJDWLRQ
VXSSRUWHG E\ WHFKQRORJ\ WUDQVIHU DQG ILQDQFLDO IORZV DV HQYLVDJHG LQ WKH %&&6$3
UHTXLUHV DQ XSJUDGHG V\VWHP RI NQRZOHGJH FUHDWLRQ GLVVHPLQDWLRQ DQG WUDLQLQJ

%DQJODGHVK KDV DOUHDG\ VXJJHVWHG WKDW DQ ,QWHUQDWLRQDO $GDSWDWLRQ 5HVHDUFK DQG

7UDLQLQJ SURJUDPPH VKRXOG EH HVWDEOLVKHG LQ WKH FRXQWU\ DV DQ LQWHUQDWLRQDO SXEOLF
IDFLOLW\ IRU DOO WR GUDZ XSRQ :KLOH WKLV PD\ EH DQ XOWLPDWH JRDO D PRUH XUJHQW
QHHG LV WR VHW XS D FHQWUH RU QHWZRUN RI LQVWLWXWLRQV WR EH D D VRXUFH RI DOO
DYDLODEOH QDWLRQDO LQIRUPDWLRQ UHSRUWV DQG NQRZOHGJH DQG E D YLUWXDO WHFKQRORJ\
EDQN LQFOXGLQJ RQ ILQDQFLDO PHFKDQLVPV UHODWHG WR ERWK DGDSWDWLRQ DQG PLWLJDWLRQ
,W ZRXOG DOVR WUDFN DQG SURYLGH LQIRUPDWLRQ RQ WKH VWDWH RI FOLPDWH FKDQJH
QHJRWLDWLRQV

$ GHGLFDWHG ZHE SRUWDO ZRXOG EH HVWDEOLVKHG ZKLFK ZRXOG WUDFN DOO QDWLRQDO DQG
ZLWKLQ FRXQWU\ SROLFLHV UXOHV DQG UHJXODWLRQV DQG QHZV UHODWHG WR FOLPDWH FKDQJH
GHEDWHV 7KH LQIRUPDWLRQ PDQDJHG E\ WKH &HQWUH ZLOO EH DYDLODEOH WR WKH SXEOLF ,Q
HVVHQFH LW ZRXOG EH D RQHVWRS GDWD DQG LQIRUPDWLRQ EDQN RQ FOLPDWH FKDQJH IRU DOO
UHODWHG QDWLRQDO DFWLYLWLHV

7KH &HQWUH ZRXOG DOVR DUUDQJH IRU WUDLQLQJ SURJUDPPHV RQ LVVXHV UHODWHG WR
DGDSWDWLRQ DQG PLWLJDWLRQ DQG ZRXOG VXSSRUW DFWLYLWLHV LQ FROODERUDWLRQ ZLWK
XQLYHUVLWLHV UHVHDUFK FHQWUHV DQG RWKHU DJHQFLHV

$FWLRQV $ (VWDEOLVK D FHQWUH DQGRU QHWZRUN IRU UHVHDUFK RQ FOLPDWH FKDQJH DQG FOLPDWH
FKDQJH LPSDFWV DQG WKHLU PDQDJHPHQW
$ (VWDEOLVK D YLUWXDO WHFKQRORJ\ EDQN
$ 'HYHORS DQG PDLQWDLQ D G\QDPLF ZHE SRUWDO
$ 'HYHORS WUDLQLQJ SURJUDPPHV IRU KLJK DQG PLGOHYHO RIILFLDOV RI WKH *RYHUQPHQW
1*2V DQG SULYDWH RUJDQLVDWLRQVDVVRFLDWLRQV DQG SURYLGH WUDLQLQJ LQ FROODERUDWLRQ
ZLWK UHVHDUFK FHQWUHV DQG XQLYHUVLWLHV
7LPHOLQH
,PPHGLDWH DQG FRQWLQXLQJ

5HVSRQVLELOLW\
0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV UHVHDUFK RUJDQLVDWLRQV XQLYHUVLWLHV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 5HVHDUFK DQG .QRZOHGJH 0DQDJHPHQW

3URJUDPPH 3 &OLPDWH FKDQJH PRGHOOLQJ DW QDWLRQDO DQG VXEQDWLRQDO OHYHOV

2EMHFWLYH 'HYHORS PDLQWDLQ DQG XSGDWH D GHWDLOHG DQG RSHUDWLRQDO *HQHUDO &LUFXODWLRQ 0RGHO
*&0 IRU %DQJODGHVK

-XVWLILFDWLRQ 7KH WK ,3&& UHSRUW HVWDEOLVKHG WKDW JOREDO ZDUPLQJ DQG FOLPDWH FKDQJH DUH FDXVHG
E\ LQFUHDVLQJ FRQFHQWUDWLRQV RI JUHHQ KRXVH JDVHV FDXVHG E\ DQWKURSRJHQLF IDFWRUV
,W SUHGLFWHG WKDW WHPSHUDWXUH ULVHV ZLOO YDU\ LQ GLIIHUHQW SDUWV RI WKH ZRUOG DQG XVHG
D QXPEHU RI JOREDO FLUFXODWLRQ PRGHOV WR JHQHUDWH IXWXUH FOLPDWH VFHQDULRV DW JOREDO
DQG UHJLRQDO OHYHOV

,Q RUGHU WR JHQHUDWH PRUH SUHFLVH FOLPDWH FKDQJH VFHQDULRV IRU %DQJODGHVK LW LV

QHFHVVDU\ WR GHYHORS DSSURSULDWH *&0 PRGHOV 7KHVH PRGHOV VKRXOG EH FDOLEUDWHG
GRZQ WR GLVWULFW DQG VXEGLVWULFW OHYHOV DQG WHDPV RI VSHFLDOLVWV VKRXOG EH DEOH WR
ZRUN RQ VHOHFWHG PRGHOPRGHOV WR VLPXODWH IXWXUH FRQGLWLRQV XQGHU GLIIHUHQW
VFHQDULRV DQG DVVXPSWLRQV 7KH PRGHOV ZRXOG XVH VPDOO JULGV WR SUHGLFW FOLPDWH
FKDQJH VFHQDULRV ZLWK LQFUHDVLQJ SUHFLVLRQ

$FWLRQV $ %XLOG FDSDFLW\ IRU FRQVWUXFWLRQ RI *&0 PRGHOV ZLWK VPDOO JULGV
$ &RQVWUXFW DSSURSULDWH *&0 PRGHOV ZLWK VPDOO JULGV WR REWDLQ UHJLRQDO YDULDWLRQV LQ
ZHDWKHU DQG EXLOGLQJ FDSDFLW\ WR RSHUDWH DQG XSGDWH WKHP
$ &ROOHFW DGGLWLRQDO ILHOG GDWD IRU HIIHFWLYH XVH RI WKH FDOLEUDWHG PRGHOV WR SUHGLFW
IXWXUH FOLPDWH FKDQJH
$ /LQN XS UHJLRQDO FOLPDWH FKDQJH PRGHOV WR JHQHUDWH EHWWHU ERXQGDU\ FRQGLWLRQV

7LPHOLQH ,PPHGLDWH DQG FRQWLQXLQJ

5HVSRQVLELOLW\ %DQJODGHVK 0HWHRURORJLFDO 'HSDUWPHQW 8QLYHUVLWLHV 5HVHDUFK 2UJDQLVDWLRQV )):&

 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 5HVHDUFK DQG .QRZOHGJH 0DQDJHPHQW

3URJUDPPH 3 3UHSDUDWRU\ VWXGLHV IRU DGDSWDWLRQ DJDLQVW VHD OHYHO ULVH 6/5 DQG LWV LPSDFWV

2EMHFWLYH 0RQLWRULQJ DQG PRGHOOLQJ WR SUHGLFW VHD OHYHO ULVH 6/5 DQG LWV LPSDFWV

-XVWLILFDWLRQ 2QH RI WKH PDLQ WKUHDWV RI FOLPDWH FKDQJH LV VHD OHYHO ULVH 6/5 FDXVHG E\ WKH
WKHUPDO H[SDQVLRQ RI VHD ZDWHU DQG WKH PHOWLQJ RI VQRZ DQG LFH 7KHVH IDFWRUV PD\
EH FRPSRXQGHG ORFDOO\ E\ WHFWRQLF DFWLYLWLHV 7KH WK ,3&& 5HSRUW SUHGLFWV WKDW
RYHU WKH QH[W  \HDUV VHD OHYHOV ZLOO ULVH E\ XS WR  FPV DORQJ WKH %DQJODGHVK
FRDVW WKRXJK VRPH VFLHQWLVWV FRQVLGHU WKLV D FRQVHUYDWLYH HVWLPDWH

7KH VHD OHYHO ULVH WKUHDWHQV WKH ORZO\LQJ FRDVWDO EHOW DQG VPDOO LVODQGV 0XFK RI RXU
FRDVW LV SURWHFWHG ZLWK  WR  PHWHU KLJK G\NHV DQG ZLOO EH IXUWKHU SURWHFWHG ZLWK
DGGLWLRQDO SODQQHG SROGHUV 7KH PDLQ LPSDFWV RI 6/5 ZRXOG EH

VDOLQLW\ LQJUHVV FDXVLQJ WKH ULYHUV LQ WKH FRDVWDO EHOW WR EHFRPH EUDFNLVK RU VDOLQH
7KLV ZRXOG KDYH VHULRXV LPSDFWV RQ SURGXFWLRQ RI IRRG JUDLQV
ULVHV LQ ULYHU OHYHOV ZKLFK ZRXOG LPSHGH GUDLQDJH IURP SROGHUV UHVXOWLQJ LQ ZDWHU
ORJJLQJ ZKLFK ZRXOG DOVR DGYHUVHO\ DIIHFW DJULFXOWXUH

&XUUHQWO\ WKHUH LV QR GDWD FROOHFWLRQ SURJUDPPH WR PRQLWRU 6/5 6LQFH ZDWHU OHYHOV
LQ WKH 0HJKQD HVWXDU\ FDQ ULVH GXH WR PRQVRRQ ZLQGV E\ PRUH WKDQ  PHWHUV
HVWLPDWLQJ WKH 6/5 UHVXOWLQJ IURP JOREDO ZDUPLQJ ZLOO EH FRPSOH[ +RZHYHU WKH
WDVN VKRXOG EH WDNHQ XS XUJHQWO\

$FWLRQV $ 6HWWLQJ XS GDWD FROOHFWLRQ QHWZRUN VWDWLRQV WR PRQLWRU VHD OHYHO ULVHV DQG VDOLQLW\
DORQJ ZLWK RWKHU DSSURSULDWH K\GURPHWHRURORJLFDO GDWD
$ 0RGHOOLQJ WKH LQXQGDWLRQ DQG VDOLQLW\ LPSDFWV RI 6/5 E\ VSHFLILF WLPH OLQHV
$ 0RGHOOLQJ DQG SUHGLFWLQJ WKH VRFLRHFRQRPLF DQG KHDOWK LPSDFWV RI 6/5
$ 3ODQQLQJ LQGXVWULDO UHORFDWLRQ WDNLQJ DFFRXQW RI SULYDWH DQG VRFLDO FRVWV

7LPHOLQH 6KRUW PHGLXP DQG ORQJ WHUP

5HVSRQVLELOLW\ 0LQLVWU\RI 'HIHQFH 0LQLVWU\RI 6KLSSLQJ 0LQLVWU\RI $JULFXOWXUH 0LQLVWU\RI ,QGXVWU\

DQG 0LQLVWU\RI 3RZHU (QHUJ\ DQG 0LQHUDO5HVRXUFHV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 5HVHDUFK DQG .QRZOHGJH 0DQDJHPHQW

3URJUDPPH 3 0RQLWRULQJ RI HFRV\VWHP DQG ELRGLYHUVLW\ FKDQJHV DQG WKHLU LPSDFWV

2EMHFWLYH 8QGHUVWDQGLQJ HFRV\VWHP G\QDPLFV DQG WKHLU LPSOLFDWLRQV IRU ELRGLYHUVLW\ FKDQJHV
DQG DGDSWDWLRQ VWUDWHJLHV

-XVWLILFDWLRQ 2QH RI WKH REMHFWLYHV RI WKH 81)&&& LV WR XUJHQWO\ UHGXFH *+* HPLVVLRQV VR WKDW
HFRV\VWHPV DQG WKHLU IORUD DQG IDXQD KDYH WLPH WR DGMXVW WR FOLPDWH FKDQJH
+RZHYHU DGYHUVH LPSDFW RI FOLPDWH FKDQJH RQ ELRGLYHUVLW\ DQG HFRV\VWHPV DUH
EHLQJ UHSRUWHG IURP PDQ\ SDUWV RI WKH ZRUOG 7KH 6SHFLHV 6XUYLYDO &RPPLVVLRQ RI
,8&1 H[SHFWV WKDW UHSWLOHV DQG DPSKLELDQV ZLOO EH WKH ILUVW YLFWLPV RI FOLPDWH
FKDQJH 0RYHPHQWV RI LQVHFWV DQG EXWWHUIOLHV WRZDUGV QRUWKHUQ ODWLWXGHV DV WKH
HDUWK JHWV ZDUPHU DUH DOUHDG\ EHLQJ UHSRUWHG &KDQJHV LQ WKH IORZHULQJ SDWWHUQV RI
SODQWV PD\ DGYHUVHO\ DIIHFW WKH OLIH F\FOHV RI IDXQD WKDW GHSHQG RQ WKHP LI WKH\
FDQQRW DGDSW TXLFNO\ HQRXJK

6DOLQLW\ OHYHOV DUH DOVR OLNHO\ WR LQFUHDVH VLJQLILFDQWO\ LQ WKH FRDVWDO EHOW 0DQJURYH
HFRV\VWHPV ZKLFK DUH DOUHDG\ XQGHU VHULRXV VWUHVV IRU DQWKURSRJHQLF UHDVRQV ZLOO
VXIIHU KHDYLO\ GXH WR IXUWKHU LQFUHDVHV LQ VDOLQLW\ 7KHVH FRXOG DOWHU WKH HQWLUH
HFRV\VWHP RI WKH 6XQGDUEDQV DQG FDXVH WKH H[WLQFWLRQ RI VRPH VSHFLHV

,Q YLHZ RI WKHVH H[SHFWHG FKDQJHV D V\VWHPDWLF PRQLWRULQJ PHFKDQLVP VKRXOG EH

SXW LQ SODFH WR DVVHVV WKH LPSDFW RI FOLPDWH FKDQJH RQ HFRV\VWHPV DQG ELRGLYHUVLW\
7KLV ZRXOG LQYROYH WUDLQLQJ RI UHVHDUFKHUV DQG PRQLWRUV DQG GHYHORS D PRQLWRULQJ
V\VWHP FRYHULQJ DOO PDMRU HFRV\VWHPV $ SDUWLFLSDWRU\ LPSDFW PRQLWRULQJ PHFKDQLVP
LQYROYLQJ FRPPXQLWLHV DQG DFDGHPLF H[SHUWV ZLOO EH GHVLJQHG 3HUWLQHQW SK\VLFDO
FKHPLFDO DQG ELRORJLFDO GDWD ZLOO DOVR EH FROOHFWHG 7KH FKDQJHV WKDW WDNH SODFH LQ
OLYHOLKRRG SDWWHUQV GXH WR HFRORJLFDO DQG ELRGLYHUVLW\ FKDQJHV ZLOO DOVR EH DVVHVVHG
DQG SROLF\ UHFRPPHQGDWLRQV DQG DSSURSULDWH DFWLRQV VXJJHVWHG
$FWLRQV
$ 6HW XS D ZHOOGHVLJQHG PRQLWRULQJ V\VWHP WR HYDOXDWH FKDQJHV LQ HFRV\VWHP DQG
ELRGLYHUVLW\ FRYHULQJ DOO LPSRUWDQW DQG VHQVLWLYH HFRV\VWHPV
$ 'HYHORS SDUWLFLSDWRU\ PRQLWRULQJ V\VWHPV E\ LQYROYLQJ ORFDO WUDLQHG SHRSOH VXFK DV
VFKRRO WHDFKHUV FRPPXQLWLHV DQG DFDGHPLF UHVHDUFKHUV
$ 5HSRUW FKDQJHV LQ HFRV\VWHPV DQG ELRGLYHUVLW\ DQG DVVHV WKH LPSOLFDWLRQV LQFOXGLQJ
WKRVH IRU WKH OLYHOLKRRGV RI ORFDO SHRSOH DQG UHFRPPHQG DGDSWDWLRQ PHDVXUHV

7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV 0LQLVWU\ RI $JULFXOWXUH 0LQLVWU\ RI +HDOWKDQG
)DPLO\:HOIDUH0LQLVWU\ RI )LVKHULHV DQG /LYHVWRFN
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 5HVHDUFK DQG .QRZOHGJH 0DQDJHPHQW

3URJUDPPH
3 0DFURHFRQRPLF DQG VHFWRUDO HFRQRPLF LPSDFWV RI FOLPDWH FKDQJH
2EMHFWLYH
7R LGHQWLI\ OLNHO\ PDFURHFRQRPLF DQG VHFWRUDO LPSDFWV RI FOLPDWH FKDQJH DQG SODQ
DGDSWDWLRQ DQG PLWLJDWLRQ VWUDWHJLHV
-XVWLILFDWLRQ 7KH SLRQHHULQJ UHSRUW E\ /RUG 6WHUQ SXEOLVKHG LQ -DQXDU\  GUHZ WKH ZRUOG
V
DWWHQWLRQ WR WKH LPSDFWV RI FOLPDWH FKDQJH RQ WKH JOREDO HFRQRP\ +H VWDWHG WKDW
SRRU FRXQWULHV DQG WKH SRRU SHRSOH LQ WKHP ZLOO EH KDUGHVW KLW 7KLV LV HVSHFLDOO\
WUXH IRU FRXQWULHV VXFK DV %DQJODGHVK ZKLFK DUH YHU\ YXOQHUDEOH WR FOLPDWH UHODWHG
HYHQWV

%DQJODGHVK KDV EHHQ H[SHULHQFLQJ VWURQJ HFRQRPLF JURZWK LQ UHFHQW \HDUV DQG LV RQ
WUDFN WR EHFRPH D PLGGOHLQFRPH FRXQWU\ E\  ,W LV LPSRUWDQW WKDW ZH
XQGHUVWDQG WKH LPSDFWV WKDW FOLPDWH FKDQJH ZLOO KDYH RQ D PDFURHFRQRPLF
JURZWK DQG VWDELOLW\ E GLIIHUHQW VHFWRUV RI WKH HFRQRP\ DQG F GLIIHUHQW UHJLRQV
DQG VRFLRHFRQRPLF JURXSV LQ WKH VKRUW PHGLXP DQG ORQJ WHUPV

7KLV SURJUDPPH ZLOO HYDOXDWH WKH LPSDFW RI FOLPDWH FKDQJH RQ WKH PDFUR HFRQRP\
DQG FDUU\ RXW VHFWRUE\VHFWRU DQDO\VHV 2WKHU VWXGLHV ZLOO DVVHVV WKH HFRQRPLF DQG
VRFLDO LPSDFW RQ WKH SRRU LQ YXOQHUDEOH ORFDWLRQV DQG RQ YXOQHUDEOH JURXSV LQ
VRFLHW\ LQFOXGLQJ ZRPHQ DQG FKLOGUHQ :RPHQ DQG FKLOGUHQ DUH H[SHFWHG WR EH
PRUH DGYHUVHO\ DIIHFWHG E\ FOLPDWH FKDQJH WKDQ PHQ DQG WKH DQDO\VHV ZLOO XVH
JHQGHUGLVDJJUHJDWHG GDWD ZKHUH SRVVLEOH

$FWLRQV $ (YDOXDWH WKH LPSDFW RI FOLPDWH FKDQJH RQ WKH PDFURHFRQRP\ RI %DQJODGHVK
LQFOXGLQJ LPSDFWV RQ JURZWK HPSOR\PHQW WUDGH SDWWHUQV LQIODWLRQ EDODQFH RI
WUDGH D %DQJODGHVK 6WHUQ 5HSRUW
$ 6HFWRUDO HFRQRPLF LPSDFWV RI FOLPDWH FKDQJH IRU PDMRU VHFWRUV VXFK DV DJULFXOWXUH
LQGXVWU\ VHUYLFHV KHDOWK WUDQVSRUW DQG ILQDQFLDO VHUYLFHV VXFK DV LQVXUDQFH
$ $VVHVV WKH LPSDFWV RI FOLPDWH FKDQJH RQ SRYHUW\ DQG RQ SHRSOH OLYLQJ LQ YXOQHUDEOH
DUHDV VXFK DV CHARS  FRDVWDO SODLQ DQG LVODQGV ORZO\LQJ IORRGSODLQV XSODQG DUHDV
DQG MONGASURQH DUHDV
$ $VVHVVPHQW RI FOLPDWH FKDQJH DQG LWV LPSDFWV RQ RXWPLJUDWLRQ

7LPHOLQH 0HGLXP WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI )LQDQFH VHFWRUDO PLQLVWULHV 0LQLVWU\ RI :RPHQ DQG&KLOGUHQ$IIDLUV
0LQLVWU\ RI 6RFLDO:HOIDUH 0LQLVWU\ RI &KLWWDJRQJ +LOO 7UDFWV$IIDLUV 8QLYHUVLWLHV
5HVHDUFK2UJDQL]DWLRQV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 75HVHDUFKDQG.QRZOHGJH0DQDJHPHQW

3URJUDPPH 30RQLWRULQJRILQWHUQDODQGH[WHUQDOPLJUDWLRQRIDGYHUVHO\LPSDFWHGSRSXODWLRQDQG
SURYLGLQJVXSSRUWWRWKHPWKURXJKFDSDFLW\EXLOGLQJIRUWKHLUUHKDELOLWDWLRQLQQHZ
HQYLURQPHQW
2EMHFWLYH 'HYHORSDPRQLWRULQJPHFKDQLVPRIPLJUDWLRQRIFOLPDWHFKDQJHDIIHFWHGSHRSOH
DQGPRQLWRULQJRILQWHUQDODVZHOODVH[WHUQDOPLJUDWLRQ
-XVWLILFDWLRQ ,WLVQRZHYLGHQWWKDWSRSXODWLRQLQPDQ\SDUWVRIWKHFRXQWU\ZLOOEHVRDGYHUVHO\
DIIHFWHGWKDWWKH\ZLOOKDYHWRPRYHRXW7KHDUHDVWKDWZLOOVXIIHUIURPPDMRU
LPSDFWVRIFOLPDWHFKDQJHZLOOORVHLQOLYHOLKRRGRSSRUWXQLWLHVDQGIDFHUHGXFWLRQLQ
SURGXFWLYLW\LQDJULFXOWXUHVHFWRU7KHZRUVWDIIHFWHGDUHDVZLOOEHWKHFRDVWDOEHOW
RIWKHFRXQWU\7KLVUHJLRQZRXOGEHLPSDFWHGE\ULVHRIVHDOHYHOWKDWFRXOGGURZQ
XQSURWHFWHGORZO\LQJDUHDV7KHZDWHULQWKHZKROHFRDVWDOEHOWZLOOEHFRPHVDOLQH
DVWKHOHYHORIVHDULVHVJUDGXDOO\7KLVLQWXUQZLOODIIHFWWKHODQGDUHDVE\LQFUHDVH
LQVDOLQLW\OHYHOUHVXOWLQJLQVLJQLILFDQWUHGXFWLRQLQFURSSURGXFWLRQ7KHFRDVWDO
EHOWZLOODOVRVXIIHUIURPWKHRQVODXJKWRIF\FORQHVDQGVWRUPVXUJHVZKRVH
IUHTXHQF\DQGLQWHQVLW\DUHOLNHO\WRLQFUHDVH,QFUHDVHLQIUHTXHQF\RIF\FORQLF
ZHDWKHUZLOOLPSDFWOLYHOLKRRGRIILVKHUPHQDVWKH\ZLOOEHUHTXLUHGWRFRPHEDFNWR
VDIHUJURXQGVDVWKHVHDEHFRPHVURXJKDQGZLOOKDYHWRVWD\EDFNLQVDIHSODFHVWLOO
WKHVHDFDOPVGRZQ7KHUHIRUHLWLVDSSUHKHQGHGWKDWSRSXODWLRQRIFRDVWDOEHOW
ZLOOIDFHDGYHUVHVLWXDWLRQWKURXJKUHGXFWLRQLQIRRGJUDLQSURGXFWLRQDVZHOODVORVW
OLYHOLKRRGRSSRUWXQLWLHV3HRSOHZLOOEHIRUFHGWRPRYHRXWWRDUHDVLQVHDUFKRI
VDIHW\DQGOLYHOLKRRG

$QRWKHULPSDFWRIFOLPDWHFKDQJHZLOOEHLQWKHIRUPRILQFUHDVHLQULYHUEDQN
HURVLRQ7KLVZLOODOVRSXVKSHRSOHRXWRIWKHLURULJLQDOVHWWOHPHQWV)RUDGHQVHO\
SRSXODWHGFRXQWU\OLNH%DQJODGHVKDQ\IXUWKHUFRQFHQWUDWLRQRISRSXODWLRQLQ
UHODWLYHO\VDIHDUHDVZLOOQRWEHGHVLUDEOH7KXVRXWPLJUDWLRQILUVWZLWKLQWKH
FRXQWU\WKHQWRDUHDVIDUEH\RQGLVQRWWREHUXOHGRXW

7KHSURFHVVRIPLJUDWLRQRIFOLPDWHFKDQJHDIIHFWHGSHRSOHERWKLQVLGHDQGRXWVLGH
WKHFRXQWU\QHHGWREHPRQLWRUHGFORVHO\$WWHPSWVKRXOGEHPDGHWRSURYLGH
VDIHW\DJDLQVWIRRGVHFXULW\DQGORVVRIODQGIURPVXEPHUJHQFH+RZHYHUVRRQVXFK
HIIRUWVPD\QRORQJHUEHDEOHWRFRQWDLQSHRSOHWKHGLIILFXOWORFDWLRQVDQGDFWXDO
PRYHPHQWVRIDIIHFWHGSHRSOHZLOOVWDUW7KLVSURFHVVVKRXOGEHPRQLWRUHGDQG
DGHTXDWHLQVWLWXWLRQDOVXSSRUWVKRXOGEHSURYLGHGIRUWKHLUSURSHUUHVHWWOHPHQW

$FWLRQV $ 'HYHORSPHQWRIDPRQLWRULQJPHFKDQLVPRILQWHUQDODQGH[WHUQDOPLJUDWLRQ

$ 'HYHORSPHQWRIDSURWRFROWRSURYLGHDGHTXDWHVXSSRUWIRUWKHLUUHVHWWOHPHQWDQGUHKDELOLWDWLRQ
$ %XLOGLQJRIFDSDFLW\WKURXJKHGXFDWLRQDQGWUDLQLQJWRIDFLOLWDWHWKHLUUHVHWWOHPHQWLQQHZHQYLURQPHQW
7LPHOLQH /RQJWHUP

5HVSRQVLELOLW\
0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV0LQLVWU\RI+RPH$IIDLUVDQG0LQLVWU\RI/RFDO
*RYHUQPHQW5XUDO'HYHORSPHQWDQG&RRSHUDWLYH
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 75HVHDUFKDQG.QRZOHGJH0DQDJHPHQW

3URJUDPPH 30RQLWRULQJRILPSDFWRQYDULRXVLVVXHVUHODWHGWRPDQDJHPHQWRIWRXULVPLQ%DQJODGHVK
DQGLPSOHPHQWDWLRQRISULRULW\DFWLRQSODQ

2EMHFWLYH $GDSWDWLRQWRFOLPDWHFKDQJHLQWRXULVPVHFWRU

-XVWLILFDWLRQ ,QGLVFXVVLRQWRFOLPDWHFKDQJHDQGWRXULVPWKHWZRZD\UHODWLRQVKLSEHWZHHQWKHP
LVUHFRJQL]HG)LUVWLWLVIHOWWKDWWRXULVPVHFWRUPXVWPDNHHIIRUWWRPLQLPL]HDGYHUVH
LPSDFWVRQFOLPDWHFKDQJHWKURXJKSRVVLEOHUHGXFWLRQLQJUHHQKRXVHJDVHVHPLVVLRQ
7KHRWKHUFRQVLGHUDWLRQHPDQDWHVIURPFRQFHUQUHODWHGWRWKHGLUHFWLPSDFWRIFOLPDWH
FKDQJHDQGWRXULVPWKURXJKLQFUHDVHRIQDWXUDOGLVDVWHUWKDWZRXOGDIIHFWPDQ\RI
WKHWRXULVPVSRWV

%DQJODGHVKKDVPDMRUSRWHQWLDOIRUERWKFRPPHUFLDOWRXULVPDQGHFRWRXULVP%RWK
WKHVHDVSHFWVXIIHULQIXWXUHDVLPSDFWRIFOLPDWHFKDQJHEHFRPHHYLGHQW

&RPPHUFLDOWRXULVPLVQRWIXOO\GHYHORSHG(FRWRXULVPLVLQWKHJURZWKSDWK6XQGDUEDQV
DQG&R[·VED]DUDUHWKHPDMRUWRXULVPVLWHV7KHQDWXUDOEHDXW\RIFRDVWDOLVODQGKLOOV
RI&+7DUHUHPDLQXQH[SORUHG%XWVHDOHYHOULVHIORRGVGURXJKWVDUHOLNHO\WRLPSDFW
WKHVHVLWHV

7RGHYHORSSURSHUXQGHUVWDQGLQJRILPSDFWRIFOLPDWHFKDQJHRQWRXULVPDQGWRGHVLJQ
DSSURSULDWHPHDVXUHVWKLVFRPSRQHQWKDVEHHQSURSRVHG

$FWLRQV $$VVHVVPHQWRISUREDEOHLPSDFWRIFOLPDWHFKDQJHRQDOOW\SHVRIWRXULVPLQ%DQJODGHVK
$3UHSDUDWLRQRIDFOLPDWHFKDQJHUHVSRQVHSURJUDPPHIRU%DQJODGHVKDQGLPSOHPHQWDWLRQ
SULRULW\UHFRPPHQGDWLRQV

7LPHOLQH 0LGWHUP

5HVSRQVLELOLW\ 0LQLVWU\RI&LYLO$YLDWLRQDQG7RXULVP0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV'HSDUWPHQW
RI)RUHVW3DUMDWDQ&RUSRUDWLRQ3ULYDWHRUJDQLDWLRQV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW

3URJUDPPH 3 ,PSURYHG HQHUJ\ HIILFLHQF\ LQ SURGXFWLRQ DQG FRQVXPSWLRQ RI HQHUJ\

2EMHFWLYH (QVXUH DQ HQHUJ\ VHFXUH DQG ORZFDUERQ GHYHORSPHQW RI WKH HFRQRP\

-XVWLILFDWLRQ %DQJODGHVK LV RQH RI WKH ORZHVW HQHUJ\ FRQVXPLQJ DQG JUHHQ KRXVH JDV *+*
HPLWWLQJ FRXQWULHV 2XU HQHUJ\ FRQVXPSWLRQ LV DURXQG  NJRH NLORJUDPPH RI RLO
HTXLYDOHQW SHU FDSLWD WKH ORZHVW LQ 6RXWK $VLD H[FHSW IRU 1HSDO :HXVH.ZK
HOHFWULFLW\SHUFDSLWDZKLFKLVHTXLYDOHQWWRNJRH
:H HPLW OHVV WKDQRQHILIWK RI
 SHUFHQW RI WKH WRWDO JOREDO HPLVVLRQ RI FDUERQ GLR[LGH HTXLYDOHQW LQWKH ZRUOG

+RZHYHU %DQJODGHVK LV DOVR DQ HQHUJ\LQHIILFLHQW FRXQWU\ ,I ZH UDLVH WKH HIILFLHQF\

ZLWK ZKLFK ZH SURGXFH DQG FRQVXPH HQHUJ\ ZH PD\ EH DEOH WR LQFUHDVH HQHUJ\
VXSSO\ ZKLOH ORZHULQJ FDUERQ HPLVVLRQ 7KLV FRXOG DOORZ XV WR ORZHU FDUERQ
HPLVVLRQV ZLWKRXW MHRSDUGL]LQJ HQHUJ\ VHFXULW\ DQG JURZWK

:H VKRXOG FDUHIXOO\ DVVHVV KRZ ZH FDQ EHFRPH PRUH HIILFLHQW LQ SURGXFLQJ DQG
FRQVXPLQJ HQHUJ\ 7KLV ZLOO LQYROYH LGHQWLI\LQJ DQ\ WHFKQLFDO HFRQRPLF RU
UHJXODWRU\SROLF\ FRQVWUDLQWV WR KHOS LPSURYH SHUIRUPDQFH DQG WR OHDUQ KRZ WKHVH
FRQVWUDLQWV FDQ EH RYHUFRPH ,PSURYLQJ RXU HIILFLHQF\ PD\ UHTXLUH WKH XVH RI QHZ
WHFKQRORJLHV ZKLFK FRXOG EH FRVWO\ DQG ZLOO WKXV QHHG DGGLWLRQDO ILQDQFLDO UHVRXUFHV

,W ZLOO EH LPSRUWDQW WR WDNH D PHGLXP WR ORQJWHUP YLHZ LQ DQDO\VLQJ DOWHUQDWLYH

LQYHVWPHQWV VLQFH RQFH LQYHVWPHQWV DUH PDGH LW ZRXOG EH H[SHQVLYH WR FKDQJH
WKHP

$FWLRQV $ 6WXG\ WKH IXWXUH HQHUJ\ QHHGV RI WKH FRXQWU\ DQG ILQG RXW WKH OHDVW FRVW HQHUJ\
VXSSO\ SDWK WKDW VDWLVILHV IXWXUH HQHUJ\ GHPDQG EDVHG RQ WKH GHVLUHG JURZWK SDWK RI
WKH HFRQRP\
$ 5DLVH HQHUJ\ HIILFLHQF\ LQ SRZHU SURGXFWLRQ WUDQVPLVVLRQ DQG GLVWULEXWLRQ WKURXJK
DSSURSULDWH LQYHVWPHQWV
$ 5DLVH HQHUJ\ HIILFLHQF\ LQ DJULFXOWXUDO DQG LQGXVWULDO SURFHVVHV WKURXJK DSSURSULDWH
SROLFLHV DQG LQYHVWPHQWV
$ 5DLVH HQHUJ\ HIILFLHQF\ LQ GRPHVWLF DQG FRPPHUFLDOVHUYLFH VHFWRUV WKURXJK
DSSURSULDWH SROLFLHV DQG LQYHVWPHQWV
$ 5DLVH HQHUJ\ HIILFLHQF\ LQ WUDQVSRUW VHFWRU WKURXJK DSSURSULDWH SROLFLHV DQG
LQYHVWPHQWV

7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\RI3RZHU(QHUJ\DQG0LQHUDO5HVRXUFHV 0LQLVWU\ RI ,QGXVWU\ 0LQLVWU\ RI
$JULFXOWXUH0LQLVWU\RI&RPPXQLFDWLRQV0LQLVWU\RI)LQDQFH8QLYHUVLWLHVDQG
5HVHDUFK2UJDQLVDWLRQV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW

3URJUDPPH 3 *DV H[SORUDWLRQ DQG UHVHUYRLU PDQDJHPHQW

2EMHFWLYH (QKDQFH HQHUJ\ VHFXULW\ DQG HQVXUH ORZHPLVVLRQ GHYHORSPHQW

-XVWLILFDWLRQ %DQJODGHVK LVRQHRIWKHOHDVWH[SORUHGFRXQWU\LQWKHZRUOGDQGKDV PRGHVW

UHVHUYHV RI QDWXUDO JDV .QRZQ UHVHUYHV DUH H[SHFWHG WR EHXVHG XS LQ DERXW D
GHFDGH )XUWKHU JDV H[SORUDWLRQ WREHDFFHOHUDWHG )LQGLQJ QHZ JDVUHVHUYHV ZRXOG
HQKDQFHWKH FRXQWU\
V HQHUJ\ VHFXULW\ DQG PD\ PDNH LW SRVVLEOH WRUHPDLQ
RQ D ORZ FDUERQ JURZWK SDWK EHFDXVH QDWXUDO JDV LV WKH FOHDQHVW RI DOO IRVVLOIXHOV LQ
WHUPV RI &2HPLVVLRQ
$OWKRXJK WKHUH LV FXUUHQWO\ D JDV VKRUWDJH UHVHUYHV LQ H[LVWLQJ JDVILHOGV FRXOG EH
KLJKHU WKDQ FXUUHQW HVWLPDWHV 7KHUH LV DQ XUJHQW QHHG IRUDFFHOHUDWHGH[SORUDWLRQ
DQGWRLPSURYH UHVHUYRLUPDQDJHPHQW DOWKRXJK WKH GDWD LV OLPLWHG &ROOHFWLQJ
DQG DQDO\VLQJ VXFKGDWD FRXOG OHDG WR WKH GLVFRYHU\ RI LQFUHDVHG UHVHUYHV RI JDV LQ
H[LVWLQJ JDVILHOGVRULQWKHLU HQYLURQV

,Q FRQFOXVLRQ ERWK H[SORUDWLRQ DQG UHVHUYRLU PDQDJHPHQW FRXOG OHDG WR VXEVWDQWLDO

LQFUHDVHV LQ VXSSOLHV RI JDV

$FWLRQV $ ,QYHVW LQ *DV ([SORUDWLRQ

$ ,QYHVW LQ 5HVHUYRLU 0DQDJHPHQW

7LPHOLQH 0HGLXP WR ORQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\RI3RZHU(QHUJ\DQG0LQHUDO5HVRXUFHV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW

3URJUDPPH 3 'HYHORSPHQW RI FRDO PLQHV DQG FRDO ILUHG SRZHU VWDWLRQV

2EMHFWLYH 0D[LPLVLQJ FRDO RXWSXW DQG PDQDJLQJ FRDO ILUHG SRZHU VWDWLRQV LQ D FDUERQQHXWUDO
ZD\
-XVWLILFDWLRQ
%DQJODGHVK LV JHRORJLFDOO\ RQH RI WKH OHDVW H[SORUHG FRXQWU\ +RZHYHU WKH
H[SORUDWLRQ WKDW KDV WDNHQ SODFH LQGLFDWHV WKDW WKHUH PD\ EH VXEVWDQWLDO DPRXQWV
RI FRDO DW VKDOORZ GHSWKV LQ VRPH SDUWV RI WKH FRXQWU\ 7KLV FRDO LV RIKLJKTXDOLW\DQG
WKLVFRDOFRXOGKHOSWRVDWLVI\WKHULVLQJGHPDQGIRUHQHUJ\ WKRXJKWKHYROXPHRI
H[WUDFWLRQRIFRDOZRXOGGHSHQGRQ0LQLQJ0HWKRGVDQGWKHJHRORJ\HQYLURQPHQW
DQGHFRQRPLFRIWKDWDUHDGLFWDWHWKH0LQLQJ0HWKRGV
7KHSRWHQWLDOLW\RIFRDOEHGPHWKDQHRIWKHGLVFRYHUHGFRDOGHSRVLWVLQ%DQJODGHVKLV
QHJOLJLEOHH[FHSW-DPDOJRQJ6RYHU\OLWWOHYROXPHRI&%0ZRXOGHVFDSHWRWKH
DWPRVSKHUHDQGSROOXWHGWKHHQYLURQPHQW%DQJODGHVKKDVRQO\RQHFRDOILUHGSRZHU
SODQWZKHUHFOHDQFRDOWHFKQRORJ\DUHEHLQJXVHG&RDO0LQLQJKDVHQYLURQPHQWDODQG
VRFLDOFRVWVZKLFKZRXOGKDYHWREHFDUHIXOO\FRQVLGHUHG

$FWLRQV $ 5HYLHZ &RDO 0LQLQJ 0HWKRGV DQG XQGHUWDNH D IHDVLELOLW\ VWXG\ WR DVVHVV WKH
WHFKQLFDO HFRQRPLF VRFLDO DQG HQYLURQPHQWDO IHDVLELOLW\ RI FRDO PLQLQJ IRU SRZHU
JHQHUDWLRQ LQFOXGLQJ IDFWRUV VXFK DV KRZ WR FDSWXUH FRDO EHG PHWKDQH
$ ,I WKH IHDVLELOLW\ VWXG\ LV SRVLWLYH LQYHVW LQ FRDO PLQLQJ DQG FRDOILUHG SRZHU
JHQHUDWLRQ SODQWV XVLQJ FOHDQ FRDO WHFKQRORJ\

7LPHOLQH 0HGLXP WHUP

5HVSRQVLELOLW\
0LQLVWU\RI3RZHU(QHUJ\DQG0LQHUDO5HVRXUFHV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW

3URJUDPPH 3 5HQHZDEOH HQHUJ\ GHYHORSPHQW

2EMHFWLYH 0D[LPLVLQJ WKH XVH RI UHQHZDEOH HQHUJ\ VRXUFHV WR ORZHU *+* HPLVVLRQ DQG HQVXULQJ
HQHUJ\ VHFXULW\

-XVWLILFDWLRQ 7KH VFRSH IRU GHYHORSLQJ UHQHZDEOH HQHUJ\ VXSSOLHV HJ VRODU ZLQG WLGDO
JHRWKHUPDO DQG PRGHUQ ELRPDVV WHFKQRORJLHV KDV QRW EHHQ H[SORUHG ZHOO LQ
%DQJODGHVK

7KHUH LV VRPH XVH RI VRODU SRZHU IRU OLPLWHG GRPHVWLF SXUSRVHV 7KH PDLQ EDUULHU WR
H[SDQGHG VRODU HQHUJ\ XVH LV WKH FDSLWDO FRVW +RZHYHU VLQFH WKH FRVW RI VRODU FHOOV
DQG VRODU SDQHOV LQ JOREDO PDUNHWV LV H[SHFWHG WR JUDGXDOO\ IDOO %DQJODGHVK VKRXOG
HQFRXUDJH HQWUHSUHQHXUV ZKR ZLVK WR VWDUW VRODU SURMHFWV SRVVLEO\ WKURXJK
LQFHQWLYHV

7KH SRWHQWLDO RI KDUYHVWLQJ ZLQG HQHUJ\ WKRXJK UHFRJQL]HG IRU PDQ\ \HDUV KDV QRW
SURGXFHG WDQJLEOH UHVXOWV VR IDU 7KH LQLWLDO FDSLWDO FRVW UHPDLQV WKH PDLQ VWXPEOLQJ
EORFN +LJK YDULDWLRQV LQ ZLQG VSHHG DQG VKDUS VHDVRQDO FKDQJHV DOVR SUHVHQW
GLIILFXOWLHV 7KH WLGDO UDQJH RI WKH FRDVWDO EHOW LV FRQVLGHUHG WR EH DGHTXDWH IRU WKH
JHQHUDWLRQ RI WLGDO SRZHU +RZHYHU WKHUH KDV QRW EHHQ DQ\ DWWHPSW WR KDUYHVW VXFK
HQHUJ\ %LRJDV GHYHORSPHQW UHPDLQV LQ LWV LQIDQF\ (YHQ WKH SRSXODULVDWLRQ
SURJUDPPHV IRU LPSURYHG FRRNLQJ VWRYHV ZKLFK VDYH D ORW RI IXHO ZRRG KDYH KDG
OLPLWHG VXFFHVV

7KHUH DUH WKHQ WHFKQLFDO HFRQRPLF VRFLDO DQG LQVWLWXWLRQDO EDUULHUV WR WKH
DGRSWLRQ RI UHQHZDEOH WHFKQRORJLHV +RZHYHU VLQFH UHQHZDEOH WHFKQRORJ\ IRU
SRZHU JHQHUDWLRQ RU GLUHFW XVH LV FDUERQQHXWUDO RU QHDUO\ VR WHFKQRORJLHV VXFK DV
WKHVH VKRXOG EH FRQVLGHUHG 7KH FRXQWU\ LVJRLQJWRVHW XS D 6XVWDLQDEOH (QHUJ\
'HYHORSPHQW $XWKRULW\ WR SRSXODULVH UHQHZDEOH HQHUJ\ WHFKQRORJLHV ,W VKRXOG EH
SURYLGHG ZLWK DGHTXDWH ILQDQFLDO DQG RWKHU VXSSRUW VR WKDW UHQHZDEOH HQHUJ\
EHFRPHV D SDUW RI WKH PRYH WRZDUGV D ORZFDUERQ GHYHORSPHQW SDWK

(DFK RI WKHVH WHFKQRORJLHV KRZHYHU ZLOO QHHG WR EH HYDOXDWHG FDUHIXOO\ WR

XQGHUVWDQG WKH WHFKQRORJLFDO DQG HFRQRPLF EDUULHUV DQG SRWHQWLDO ,I VWDUWXS FRVWV
DUH KLJK WKH LVVXHV RI VXEVLG\ RU RWKHU VXSSRUW PD\ KDYH WR EH FRQVLGHUHG 3RZHU
JHQHUDWLRQ SROLF\ VKRXOG DOVR WDNH WKHVH WHFKQRORJLHV LQWR DFFRXQW LQ LWV SODQQLQJ

$FWLRQV $ ,QYHVWPHQWV WR VFDOH XS VRODU SRZHU SURJUDPPHV

$ 5HVHDUFK DQG LQYHVWPHQW WR KDUQHVV ZLQG HQHUJ\ SDUWLFXODUO\ LQ FRDVWDO DUHDV
$ )HDVLELOLW\ VWXGLHV IRU WLGDO DQG ZDYH HQHUJ\
$ 6WXG\ RI WKH WHFKQRHFRQRPLF VRFLDO DQG LQVWLWXWLRQDO FRQVWUDLQWV WR DGRSWLRQ RI
LPSURYHG ELRPDVV VWRYHV DQG RWKHU WHFKQRORJLHV

7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\
0LQLVWU\RI3RZHU(QHUJ\DQG0LQHUDO5HVRXUFHV 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV
SULYDWHHQWUHSUHQHXUV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW

3URJUDPPH 3 /RZHU HPLVVLRQV IURP DJULFXOWXUDO ODQG

2EMHFWLYH 5DLVH SURGXFWLYLW\ RI DJULFXOWXUDO ODQG DQG ORZHU HPLVVLRQV RI PHWKDQH

-XVWLILFDWLRQ (PLVVLRQ RI JUHHQKRXVH JDVHV *+*V IURP DJULFXOWXUDO ODQG LV D PDMRU FRQFHUQ :HW
DJULFXOWXUDO ODQG SURGXFHV PHWKDQH &+ 1LWURJHQRXV 1 IHUWLOL]HUV DOVR
FRQWULEXWH WR *+* HPLVVLRQ

$ PDMRU UHDVRQ IRU PHWKDQH HPLVVLRQV LV WKDW ULFH ILHOGV DUH NHSW FRQWLQXRXVO\
IORRGHG ZKLFK VFLHQWLVWV QRZ VD\ LV XQQHFHVVDU\ ,I WKLV LV WKH FDVH PHWKDQH
HPLVVLRQV FRXOG EH UHGXFHG ZDWHU XVH HIILFLHQF\ FRXOG EH UDLVHG DQG FDUERQ GLR[LGH
HPLVVLRQV IURP EXUQLQJ GLHVHO WKH PDLQ IXHO IRU LUULJDWLRQ FRXOG EH FXW 6XFK ODQG
XVH SUDFWLFHV ZRXOG QHHG WR EH VXSSRUWHG WKURXJK IXUWKHU RQIDUP UHVHDUFK DQG
H[WHQVLRQ DFWLYLWLHV

7KLV LV DQ H[DPSOH RI ZKDW WKH 81)&&& FDOOV ODQG XVH ODQG XVH FKDQJH DQG IRUHVWU\
/8/8&) ,VVXHV UHODWHG WR IRUHVW PDQDJHPHQW GHIRUHVWDWLRQ UHIRUHVWDWLRQ DQG
DIIRUHVWDWLRQ ZLOO EH FRYHUHG LQ 737KLV SURJUDPPH DLPV WR ORZHU HPLVVLRQV
WKURXJK LPSURYHG FURSODQG PDQDJHPHQW

$FWLRQV $ 6XSSRUW WR UHVHDUFK DQG RQIDUP WULDOV RI ZDWHU DQGIHUWLOL]HUPDQDJHPHQW WHFKQRORJ\
$ 6XSSRUW WR DJULFXOWXUDO H[WHQVLRQ VHUYLFH WR SRSXODULVH ZDWHU DQGIHUWLOL]HUPDQDJHPHQW
WHFKQLTXHV IRU ULFH SURGXFWLRQ
$ &UHDWHDZDUHQHVVDPRQJWKHIDUPHUVDERXWQLWURJHQRXVIHUWLOL]HUXVHLQWKHULFHILHOG

7LPHOLQH
0HGLXP WR /RQJ WHUP

5HVSRQVLELOLW\
0LQLVWU\ RI $JULFXOWXUH 1$56 DQG $JULFXOWXUDO ([WHQVLRQ 6HUYLFHV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW

3URJUDPPH 3 0DQDJHPHQW RI XUEDQ ZDVWH

2EMHFWLYH (QVXUH OLYHDEOH FLWLHV ZKLOH ORZHULQJ *+* PHWKDQH HPLVVLRQV

-XVWLILFDWLRQ $ PDMRU SRUWLRQ RI WKH XUEDQ ZDVWH RI %DQJODGHVK LV FRPSRVHG RI RUJDQLF PDWHULDOV
ZKLFK SURGXFH PHWKDQH &+ DV WKH\ GHFRPSRVH 7KH XQLW FRQWULEXWLRQ RI PHWKDQH
WR JOREDO ZDUPLQJ LV PXFK KLJKHU WKDQ WKDW RI FDUERQ GLR[LGH 0HWKDQH FRXOG EH
FDSWXUHG IRU VXEVHTXHQW XVH RU ZDVWH FRXOG EH LQFLQHUDWHG WR SURGXFH HOHFWULFLW\
3URSHU PDQDJHPHQW RI XUEDQ ZDVWH FRXOG WKXV EH DQ LPSRUWDQW DUHD IRU PLWLJDWLRQ
ZKLOH HQVXULQJ D FOHDQHU FLW\ )XUWKHUPRUH WKH ORZHUHG HPLVVLRQV FRXOG EH WUDGHG
LQ WKH FDUERQ PDUNHW

$FWLRQV $ 'HVLJQ RI XUEDQ ZDVWH GXPSV VR WKDW PHWKDQH FDQ EH FDSWXUHG LQ DOO PDMRU XUEDQ
DUHDV
$ 8VLQJ &'0 PHFKDQLVP WR VHW XS VPDOO SRZHU SODQWV E\ FDSWXULQJ WKH SURGXFHG
PHWKDQH IURP ZDVWH GXPSV

7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\
0LQLVWU\ RI /RFDO *RYHUQPHQW5XUDO'HYHORSPHQWDQG&RRSHUDWLYH SULYDWH
HQWUHSUHQHXUV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 0LWLJDWLRQ DQG /RZ &DUERQ 'HYHORSPHQW

3URJUDPPH 3 $IIRUHVWDWLRQ DQG UHIRUHVWDWLRQ SURJUDPPH

2EMHFWLYH 3URYLGH VXSSRUW WR VFDOH XS DIIRUHVWDWLRQ DQG UHIRUHVWDWLRQ

-XVWLILFDWLRQ )RUHVWU\ LV DQ LPSRUWDQW ZD\ WR VHTXHVWHU FDUERQ ,Q DGGLWLRQ WKH DIIRUHVWDWLRQ DQG
UHIRUHVWDWLRQ RI GHJUDGHG ODQG FRQWULEXWHV WR IRRG VHFXULW\ E\ SURYLGLQJ IUXLWV DQG
RWKHU HGLEOH SURGXFWV HQHUJ\ VHFXULW\ E\ SURYLGLQJ IXHO ZRRG OLYHOLKRRG VHFXULW\
E\ HPSOR\LQJ SHRSOH LQ IRUHVW SODQWDWLRQV KDUYHVWLQJ DQG WUDGH LQ IRUHVW SURGXFWV
DQG FDQ SURWHFW ODQG IURP VRLO HURVLRQ DQG ODQGVOLGHV SDUWLFXODUO\ LQ KLOO\ DUHDV
$IIRUHVWDWLRQ DQG UHIRUHVWDWLRQ WKXV DGGUHVV PXOWLSOH QHHGV

7KLV SURJUDPPH QHHGV WR EH GLYLGHG LQWR VHYHUDO VXESURJUDPPHV )RU WKH FRDVWDO
EHOW VHOHFWLRQ RI VSHFLHV ZLOO EH D PDMRU FRQFHUQ $V VDOLQLW\ LV H[SHFWHG WR LQFUHDVH
ZLWK ULVLQJ VHD OHYHOV HPSKDVLV VKRXOG EH JLYHQ WR VDOLQH WROHUDQW VSHFLHV )RU
IUHVKZDWHU ZHWODQGV VXLWDEOH VXEPHUJHQFH WROHUDQW VSHFLHV VXFK DV +LMRO 3RQJDPLD
SLQQDWD DQG &RURFK %DULQJWRQLD DFWDQJXOD ZKLFK FDQ DOVR SURWHFW DJDLQVW ZDYH
HURVLRQ FRXOG EH XVHG

0XFK RI *RYHUQPHQW RZQHG UHVHUYH IRUHVW ODQG LV ODUJHO\ ZLWKRXW WUHHV :HOO
GHVLJQHG DQG DGHTXDWHO\IXQGHG SURJUDPPHV LQYROYLQJ ORFDO FRPPXQLWLHV DUH
QHHGHG WR UHIRUHVW WKHVH ODQGV $ ZHOO GHVLJQHG IRUHVW RI PL[HG VSHFLHV ZLOO VXSSRUW
HFRV\VWHP DQG ELRGLYHUVLW\ FRQVHUYDWLRQ DQG PD\ EH D JRRG VRXUFH RI FDUERQ
WUDGLQJ WKURXJK WKH 5(''

6RFLDO DQG KRPHVWHDG IRUHVWU\ KDV JDWKHUHG PRPHQWXP LQ UHFHQW \HDUV ,W QHHGV WR
EH IXUWKHU HQFRXUDJHG DV LW VXSSRUWV WKH OLYHOLKRRGV RI WKH SRRU DQG ORFDO
FRPPXQLWLHV

$FWLRQV $ 3URYLGH VXSSRUW WR H[LVWLQJ DQG QHZ FRDVWDO DIIRUHVWDWLRQ SURJUDPPHV WDNLQJ LQWR
DFFRXQW WKH IXWXUH ULVH LQ VDOLQLW\ OHYHOV GXH WR VHD OHYHO ULVH
$ 'HYHORS DQ H[WHQVLYH ZHWODQG DIIRUHVWDWLRQ SURJUDPPH WR SURWHFW VHWWOHPHQWV
DJDLQVW ZDYH HURVLRQ
$ 6WXG\ WKH VFRSH IRU FDUERQ FUHGLWV XQGHU 5('' DQG LQYHVW LI DSSURSULDWH LQ
UHIRUHVWDWLRQ RI GHJUDGHG UHVHUYH IRUHVWV
$ 3URYLGH VXSSRUW WR H[LVWLQJ DQG QHZ KRPHVWHDG DQG VRFLDO IRUHVWU\ SURJUDPPHV DQG
HQKDQFH FDUERQ VHTXHVWUDWLRQ
$ 5HVHDUFK WKH VXLWDELOLW\ RI YDULRXV WUHH VSHFLHV IRU WKHLU FDUERQORFNLQJ SURSHUWLHV
IRU GHVLJQLQJ YDULRXV IRUHVWU\ SURJUDPPHV NHHSLQJ LQ PLQG RWKHU HQYLURQPHQWDO DQG
VRFLRHFRQRPLF IXQFWLRQV RI IRUHVWU\

7LPHOLQH ,PPHGLDWH DQG FRQWLQXLQJ

5HVSRQVLELOLW\ 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV

 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 70LWLJDWLRQDQG/RZ&DUERQ'HYHORSPHQW

3URJUDPPH 35DSLGH[SDQVLRQRIHQHUJ\VDYLQJGHYLFHVHJ&RPSDFW)ORUHVFHQW/DPSV&)/

2EMHFWLYH 5DSLGH[SDQVLRQLQXVHRI&)/LQDOOSUHPLVHV

-XVWLILFDWLRQ 3UHVHQWO\WKHUHLVVHULRXVVKRUWDJHRIFRPPHUFLDOHQHUJ\LQWKHFRXQWU\DQGXUJHQW
SURJUDPPHVDUHEHLQJSODQQHGIRUJHQHUDWLRQRIPRUHHOHFWULFLW\LWLVHVVHQWLDOIRU
PDLQWDLQLQJWKHSURFHVVRIGHYHORSPHQWRIWKHFRXQWU\3DUDOOHOWRLW%DQJODGHVK
VKRXOGWDNHDOORXWVWHSVIRUPLQLPL]DWLRQRIXVHRIHQHUJ\2QHVXFKPDMRUGRPDLQ
ZKHUHHQHUJ\VDYLQJPHFKDQLVPFDQEHSXVKHGLVLQWURGXFWLRQRIORZHQHUJ\
FRQVXPLQJOLJKWLQJGHYLFHVLQGRPHVWLFDVZHOODVLQGXVWULDOXQLWV&RQYHUVLRQRIDOO
OLJKWLQJSRLQWVWR&)/FDQEULQJLQVXEVWDQWLDOVDYLQJVLQJHQHUDWLRQRIHOHFWULFLQWKH
FRXQWU\

,QWKLVSURFHVV%DQJODGHVKVKRXOGFODLP&DUERQ&UHGLWVDQGWUDGHWKHPHIILFLHQWO\
%DQJODGHVKKDVDOUHDG\VHWXSWKH'HVLJQDWHG1DWLRQDO$XWKRULW\IRUSURFHVVLQJ&'0
SURMHFWV)RUFODLPLQJFDUERQFUHGLWVWKURXJKLQWURGXFWLRQRI&)/SULYDWHVHFWRU
RUJDQL]DWLRQPD\EHHQFRXUDJHG&'0IXQGVWKXVJHQHUDWHGZRXOGIDFLOLWDWHUDSLG
H[SDQVLRQRIWKHVHHQHUJ\VDYLQJGHYLFHVDVWKHKLJKHUFRVWIRUSXWWLQJWKHPXS
FRXOGEHUHGXFHG

7KH&)/VDUHQRZEHLQJLPSRUWHGVRPHODPSVDUHDOVREHLQJPDQXIDFWXUHGORFDOO\
:LWKIXQGLQJWKHTXDOLW\RIORFDOO\SURGXFHGODPSVPD\EHLPSURYHG$WWKHVDPH
WLPHWKHODPSVFRXOGEHPDGHDYDLODEOHDWDPXFKFKHDSHUSULFH

(OHFWURQLFEDOODVWVDYHVDOVRKXJHHOHFWULFLW\7KHUHIRUHWKLVSURJUDPPHZLOODOVR
WKH\DWWHQWLRQWRXVHRIHOHFWURQLFEDOODVW

$FWLRQV $ $UDSLGDVVHVVPHQWRISRWHQWLDORI&)/LQ%DQJODGHVK

$ 'HYHORSPHQWRIDSURMHFWSURSRVDOIRUREWDLQLQJ&'0EHQHILWV
$ )DFLOLWDWHH[SDQVLRQRI&)/ZLWKVXSSRUWIURP&DUERQ&UHGLW)XQG
7LPHOLQH 6KRUWWHUP

5HVSRQVLELOLW\
0LQLVWU\RI3RZHU(QHUJ\DQG0LQHUDO5HVRXUFHV0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 70LWLJDWLRQDQG/RZ&DUERQ'HYHORSPHQW

3URJUDPPH 3(QHUJ\DQG:DWHU(IILFLHQF\LQ%XLOW(QYLURQPHQW

2EMHFWLYH 3XWLQSODFHHIIHFWLYHWHFKQRORJLFDODQGDGDSWDWLRQRSWLRQVLQEXLOWHQYLURQPHQWWR
LPSURYHHQHUJ\DQGZDWHUHIILFLHQF\

-XVWLILFDWLRQ %HLQJRQHRIWKHODUJHVWPHJDFLWLHVLQWKHZRUOG'KDNDLVIDFLQJFRQWLQXRXVSRWDEOH
ZDWHUUHODWHGSUREOHPVRYHUWKHODVWIHZGHFDGHV*URXQGZDWHUH[WUDFWLRQSRVHVD
JUHDWWKUHDWWRWKHVXVWDLQDELOLW\RIWKHFLW\LWVHOI'KDND:DWHU6XSSO\DQG
6HZHUDJH$XWKRULW\:$6$PDLQO\GHSHQGRQJURXQGZDWHUH[WUDFWLRQWRFRQWLQXH
LWVVXSSO\WRWKHLQFUHDVLQJQXPEHURILQKDELWDQWVLQWKHFLW\'XHWRLQFUHDVLQJ
SRSXODWLRQDQGLQGXVWULDOJURZWKWKHGHPDQGIRUIUHVKGULQNLQJZDWHULVULVLQJ
UDSLGO\SXWWLQJIXUWKHUSUHVVXUHRQJURXQGZDWHUUHVRXUFHV%XWWKHUHFKDUJHWRWKH
DTXLIHUKDVUHGXFHGJUDGXDOO\DVWKHUHFKDUJHDEOHDUHDVDUHEHLQJUHGXFHGGXHWR
XUEDQL]DWLRQFRYHULQJWKHJURXQGVXUIDFHZLWKWDUPDFRUFRQFUHWHDQGILOOLQJRI
FKDQQHOVDQGGHSUHVVLRQV$VDUHVXOWWKHJURXQGZDWHUWDEOHLVEHLQJORZHUHGZLWK
WLPH/RZUHFKDUJHLQGLFDWHVIXWXUHXQDYDLODELOLW\RIJURXQGZDWHUDQGULVNRIODQG
VXEVLGHQFH8QIRUWXQDWHO\WKHVDPHVLWXDWLRQSUHYDLOVLQRWKHUFLWLHVRIWKHFRXQWU\
QDPHO\&KLWWDJRQJ5DMVKDKL.KXOQD6\OKHWDQG%DULVDO


7KHUHIRUHKDUYHVWLQJRIUDLQZDWHURQWKHURRIWRSFDQEHDSRVVLEOHDOWHUQDWLYH
VROXWLRQWRDFXWHZDWHUFULVLVLQXUEDQDUHDV,WKDVLPPHQVHSRVVLELOLW\LQ'KDNDDQG
RWKHUFLWLHVRIWKHFRXQWU\WRUHGXFHWKHGHSHQGHQF\RQJURXQGZDWHUDWOHDVWIRU
WKHVL[PRQWKVRIPRQVRRQ5DLQZDWHULVQDWXUDOVDIHFOHDQDQGVRIW,WLVIUHHRI
FRQWDPLQDWLRQDQGSXULI\LQJFKHPLFDOV+DUYHVWHGZDWHUFDQEHPXOWLSXUSRVHDQG
XWLOL]HGLQKRPHVJDUGHQVDVZHOODVIRUFDWWOH7KHQHFHVVDU\DGDSWDWLRQRIWKH
H[LVWLQJEXLOGLQJVRUDFFRPPRGDWLRQLQXQGHUFRQVWUXFWLRQEXLOGLQJVIRUUDLQZDWHU
KDUYHVWLQJLQFOXGHVFRQVWUXFWLRQRI5HLQIRUFHG&RQFUHWH&HPHQW5&&VWRUDJHWDQNV
DQGLQVWDOODWLRQRISLSLQJV\VWHPV7KLVRQHWLPHLQYHVWPHQWFDQVDYHWKHFLWLHVRI
%DQJODGHVKIURPDFXWHZDWHUFULVLV
%DQJODGHVKLVDOVRVXIIHULQJIURPVFDUFLW\RIHQHUJ\DQGPLQHUDOUHVRXUFHVOLNH
SRZHUJDVDQGFRDO$WSUHVHQWWKHUHLVDKXJHGHPDQGRIQDWXUDOJDVIRUGRPHVWLF
XVHLQGXVWULDOXVHDQGDERYHDOOSRZHUJHQHUDWLRQ,QXUEDQUHVLGHQWLDODUHDV
QDWXUDOJDVLVXVHGLQKRXVHKROGVIRUFRRNLQJDQGERLOLQJZDWHU,QUXUDODUHDVD
KXJHDPRXQWRIELRPDVVIXHOVXFKDVDJULFXOWXUDOUHVLGXHVWUHHUHVLGXHVIXHOZRRG
DQGGXQJLVUHTXLUHGIRUFRRNLQJDQGERLOLQJZDWHU+HQFHWKHXVHRIVRODUWKHUPDO
SDQHOFDQHYHQWXDOO\SOD\DVLJQLILFDQWUROHLQVDYLQJQDWXUDOJDVDQGELRPDVVIXHO
7KLVHFRHIILFLHQWVRODUHQHUJ\ZDWHUKHDWLQJV\VWHPFDQUDLVHWKHWHPSHUDWXUHRI
ZDWHUHDVLO\XSWRƒ&7KLVV\VWHPFRPELQHVWKHPRVWHIILFLHQWWHFKQLTXHVIRU
FDSWXULQJWKHVXQ·VKHDWZLWKPRGHUQSOXPELQJV\VWHPVWRSURGXFHFRVWHIIHFWLYH
KRWZDWHUDQGUHGXFHWKHQHHGIRUJDVRUHOHFWULFLW\WRKHDWZDWHU7KHUHLVQR
IXUWKHULQYHVWPHQWDIWHUWKHLQVWDOODWLRQRIVRODUWKHUPDOSDQHODWWKHURRIWRS
$FWLRQV $ 1HFHVVDU\DGDSWDWLRQRIH[LVWLQJEXLOGLQJVDQGDGGLWLRQDODFFRPPRGDWLRQLQXQGHU
FRQVWUXFWLRQEXLOGLQJVIRUFROOHFWLRQDQGVWRUDJHRIUDLQZDWHU
$ ,QVWDOODWLRQRIVRODUWKHUPDOSRZHURUVPDOOZLQGPLOODWWKHURRIWRSRUQHDUE\DOOEXLOGLQJV
DQGLQIUDVWUXFWXUHV
$ 5HYLVLRQRIEXLOGLQJFRGHIRULQFOXVLRQRIHQHUJ\VDYLQJGHYLFHVLQDOOLQIUDVWUXFWXUHVDQGSURYLVLRQ
IRUSODQQLQJRIFRQVWUXFWLRQZRUNVLQHQHUJ\HIILFLHQWPHWKRGV

7LPHOLQH 0HGLXPWRORQJWHUP

5HVSRQVLELOLW\ 0LQLVWU\RI+RXVLQJDQG3XEOLF:RUNV5$-8.&'$.'$5'$'&&5(+$%
$OO3ULYDWH'HYHORSHUV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 70LWLJDWLRQDQG/RZ&DUERQ'HYHORSPHQW

3URJUDPPH 3,PSURYLQJLQHQHUJ\FRQVXPSWLRQSDWWHUQLQWUDQVSRUWVHFWRUDQGRSWLRQVIRUPLWLJDWLRQ

2EMHFWLYH 7RLPSURYHHQHUJ\XVHHIILFLHQF\LQWUDQVSRUWVHFWRUDQGEHQHILWIURP&'0SURFHVV

-XVWLILFDWLRQ 7KHWUDQVSRUWVHFWRUDFFRXQWVIRUDODUJHVKDUHRIJOREDOJUHHQKRXVHJDVHPLVVLRQV
DQGWKLVVKDUHLVH[SHFWHGWRJURZRYHUWKHFRPLQJGHFDGHV7KRXJKWUDQVSRUWVKDUH
RIHPLVVLRQRI%DQJODGHVKLVORZEXWHQHUJ\FRQVXPSWLRQRIWUDQVSRUWVHFWRULVJURZLQJ
PXFKIDVWHUWKDQDQ\RWKHUVHFWRUV2IFRQFHUQIURPDFOLPDWHFKDQJHSHUVSHFWLYH
WKHWUDQVSRUWVHFWRULVUHVSRQVLEOHIRUDVLJQLILFDQWDQGLVJURZLQJVKDUHRIJUHHQKRXVH
JDVHPLVVLRQVIURPSULYDWHVHFWRUVDQGWKLVHPLVVLRQVZLOOEHGRXEOHRUPRUHLQWKH
QH[W\HDUV%XWJOREDOREMHFWLYHVKDYHVHWJOREDOHPLVVLRQUHGXFWLRQVRIWKHRUGHU
RIE\WKHPLGGOHRIWKHFHQWXU\

0DQ\YHKLFOHWHFKQRORJLHVWKDWKDYHEHHQSURSRVHGE\GHYHORSHGFRXQWULHVWRUHGXFH
*+*HPLVVLRQVDUHQRWIHDVLEOHLQRXUFRXQWU\DVSHFWEHFDXVHRIWKHLUKLJKFRVWDQG
ODFNRILQIUDVWUXFWXUH1HFHVVDU\DFWLRQQHHGVWREHJLQLQRUGHUWRGRZQWKHSDWKWR
ORZFDUERQWUDQVSRUWDWLRQ

2QHRIWKHPDQLIHVWDWLRQRIFOLPDWHFKDQJHZLOOEHULVHLQWHPSHUDWXUHWKLVZRXOG
UHGXFHWKHHIILFLHQF\RIH[LVWLQJHQJLQHV:KLFKLQWXUQZLOOLQFUHDVHLQIXHOFRQVXPSWLRQ
1HZWHFKQRORJLHVDUHLQYROYLQJWRDGMXVWWKLVSUREOHP6RHIIRUWVKRXOGPDNHWREHQHILW
IURPWKHVHWHFKQRORJLHV

*OREDOO\WKHUHLVDQRWKHUPRYHWRZDUGVORZFDUERQGHYHORSPHQW%LRIXHOVDQGELRGLHVHOV
DUHEHLQJXVHGDVVXEVWLWXWHRIWUDGLWLRQDOFRPPHUFLDOIXHOV)RUDFRXQWU\ZLWKOLPLWHG
ODQGUHVRXUFHVRSSRUWXQLWLHVIRUELRGLHVHODUHFRQVLGHUHGDVOLPLWHG+RZHYHURSSRUWXQLWLHV
SURYLGHGE\-DWURIDDQG.RURFKPD\EHH[SORUHG

$FWLRQV $3URPRWLRQRIORZFRVWSXEOLFWUDQVSRUWPRGHVVXFKDVUDSLGWUDQVLW
$5HGXFLQJWKHXVHRIIRVVLOIXHOE\LPSURYLQJWKHHIILFLHQF\RIHQHUJ\XVDJH
$3ROLWLFDOLQVWLWXWLRQDODQGILVFDOSODQQLQJQHHGWREHUHYLHZHG
$6XEVWLWXWLRQRIELRIXHOVIRVVLOIXHOVDVDSSURSULDWH

7LPHOLQH 6KRUWWHUP

5HVSRQVLELOLW\ 0LQLVWU\RI3RZHU(QHUJ\DQG0LQHUDO5HVRXUFHV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &DSDFLW\ %XLOGLQJ DQG ,QVWLWXWLRQDO 6WUHQJWKHQLQJ

3URJUDPPH 3 5HYLVLRQ RI VHFWRUDO SROLFLHV IRU FOLPDWH UHVLOLHQFH

2EMHFWLYH 7R LQWHJUDWH FOLPDWH FKDQJH LVVXHV LQWR GHYHORSPHQW SROLF\ DQG DFWLRQ

-XVWLILFDWLRQ 7KH *RYHUQPHQW DQG WKH SHRSOH RI %DQJODGHVK UHDOLVH WKDW FOLPDWH FKDQJH LV JRLQJ
WR LPSDFW DGYHUVHO\ RQ PDQ\ VHFWRUV DQG WKUHDWHQV WKH QDWLRQ
V HFRQRPLF DQG VRFLDO
DFKLHYHPHQWV 2XU IRRG ZDWHU HQHUJ\ DQG OLYHOLKRRG LQFOXGLQJ KHDOWK VHFXULW\ DUH
WKUHDWHQHG $Q LQWHJUDWHG DSSURDFK LV QHHGHG WR FRXQWHU WKLV &OLPDWH FKDQJH
PDQDJHPHQW QHHGV WR EH LQWHJUDWHG LQWR WKH GHYHORSPHQW DFWLYLWLHV RI GLIIHUHQW
VHFWRUV 6HFWRUDO SROLF\ VWDWHPHQWV QHHG WR EH PRGLILHG WR WDNH DFFRXQW RI DQG
EHFRPH FRQVLVWHQW ZLWK FOLPDWH FKDQJH LPSDFWV DQG WKHLU PDQDJHPHQW

7KH 1DWLRQDO :DWHU 0DQDJHPHQW 3ODQ UHFRJQL]HV WKH QHHG WR PDNH ZDWHU VHFWRU
DFWLYLWLHV UHVLOLHQW WR FOLPDWH FKDQJH +RZHYHU WKH RQO\ VHFWRUDO SROLF\ WKDW
H[SOLFLWO\ LQFRUSRUDWHV FOLPDWH FKDQJH FRQVLGHUDWLRQV LV WKH &RDVWDO =RQH 3ROLF\ RI
%DQJODGHVK ZKLFK ZDV GUDIWHG LQ  ZKHQ NQRZOHGJH DQG XQGHUVWDQGLQJ DERXW
FOLPDWH FKDQJH ZDV DYDLODEOH

7KHUH LV DOVR D QHHG IRU D 1DWLRQDO &OLPDWH &KDQJH 3ROLF\ WR JXLGH WKH LQWHJUDWLRQ RI
FOLPDWH FKDQJH LVVXHV LQWR GHYHORSPHQW SODQQLQJ DQG WR SURYLGH D IUDPHZRUN IRU
VHFWRUDO SROLFLHV $OO SROLF\ IRUPXODWLRQ VKRXOG EH FDUULHG RXW LQ D FRQVXOWDWLYH ZD\
E\ LQYROYLQJ NH\ RIILFLDOV RI FRQFHUQHG PLQLVWULHVVHFWRUV WRJHWKHU ZLWK
SURIHVVLRQDOV DFDGHPLFV 1*2V DQG FLYLO VRFLHW\ OHDGHUV DV ZHOO DV WKH JHQHUDO
SXEOLF

$FWLRQV $ 'UDIW D FRQVXOWDWLRQ SDSHU RQ WKH 1DWLRQDO &OLPDWH &KDQJH SROLF\ WKH LQWHJUDWLRQ RI
FOLPDWH FKDQJH LVVXHV LQWR GHYHORSPHQW SODQQLQJ DQG VHFWRUDO SROLFLHV DQG KRZ WKH\
VKRXOG EH IRUPXODWHG IRU GLVFXVVLRQ ZLWK NH\ VWDNHKROGHUV
$ ,QFRUSRUDWH FOLPDWH FKDQJH FRQFHUQV LQ DOO VHFWRUDO SROLFLHV DQG VWUDWHJLHV WKURXJK
DSSURSULDWH UHYLVLRQV LQ FRQVXOWDWLRQ ZLWK UHOHYDQW VWDNHKROGHUV
$ 3XEOLVK WKH 1DWLRQDO &OLPDWH &KDQJH 3ROLF\

7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\
0LQLVWU\RI(QYLURQPHQWDQG)RUHVWV &DELQHW GLYLVLRQ
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &DSDFLW\ %XLOGLQJ DQG ,QVWLWXWLRQDO 6WUHQJWKHQLQJ

3URJUDPPH 3 0DLQVWUHDPLQJ FOLPDWH FKDQJH LQ QDWLRQDO VHFWRUDO DQG VSDWLDO GHYHORSPHQW
SURJUDPPHV

2EMHFWLYH ,QWHJUDWLRQ RI &OLPDWH &KDQJH PDQDJHPHQW LQ DOO DVSHFWV RI GHYHORSPHQW DFWLRQ

-XVWLILFDWLRQ 7KH %DQJODGHVK *RYHUQPHQW LV FRPPLWWHG WR LQWHJUDWH FOLPDWH FKDQJH LQWR DOO
DVSHFWV RI QDWLRQDO VHFWRUDO DQG VSDWLDO GHYHORSPHQW LQ WKH FRXQWU\ 7KLV ZLOO
UHTXLUH D LQFRUSRUDWLQJ FOLPDWH FKDQJH LQWR SROLFLHV SODQV SURJUDPPHV DQG
SURMHFWV E HVWDEOLVKPHQW DQG EXLOGLQJ WKH FDSDFLW\ RI PLQLVWULHV DQG DJHQFLHV VR
WKDW WKH\ DUH DEOH WR GR WKLV HJ EXLOGLQJ RQ WKH FOLPDWH FKDQJH FHOOV LQ HDFK
PLQLVWU\ F IRFXVLQJ WR VWDUW ZLWK RQ WKRVH VSHFLILF VHFWRUV ZKHUH FOLPDWH
FKDQJH ZLOO EH D NH\ LVVXH HJ ZDWHU DJULFXOWXUH IRRG GLVDVWHU PDQDJHPHQW
KHDOWK IRUHVWV HQHUJ\ DQG SRZHU WUDQVSRUW DQG FRPPXQLFDWLRQ ZRPHQ DIIDLUV DQG
&KLWWDJRQJ +LOO 7UDFWV

7KH WDVN RI JXLGLQJ DQG VXSHUYLVLQJ WKH QDWLRQDO GHYHORSPHQW SURJUDPPH UHVWV ZLWK
WKH 3ODQQLQJ &RPPLVVLRQ 7ZR FKDQJHV DUH UHTXLUHG LQ WKH SURFHVV E\ ZKLFK
PLQLVWULHV DQG DJHQFLHV SUHSDUH DQG VXEPLW SURSRVDOV WR WKH 3ODQQLQJ &RPPLVVLRQ

WKH 3ODQQLQJ &RPPLVVLRQ LQ FRQVXOWDWLRQ ZLWK WKH 1DWLRQDO 6WHHULQJ &RXQFLORQ

&OLPDWH &KDQJH DQG VHFWRUDO PLQLVWULHV VKRXOG LQWURGXFH D VHW RI GHVLJQ DQG
SODQQLQJ SDUDPHWHUV IRU SURMHFWV IRU VHOHFWHG WDUJHW \HDUV HJ   DQG
 ZKLFK WDNH LQWR DFFRXQW OLNHO\ FOLPDWH FKDQJH LPSDFWV
WKH SURIRUPDV ZKLFK WKH 3ODQQLQJ &RPPLVVLRQ UHTXLUHV IRU SURMHFW SURSRVDOV 733
33 HWF DUH GHVLJQHG WR HQVXUH WKDW DOO HOHPHQWV IRU WDNLQJ GHFLVLRQV IRU FOLPDWH
UHVLOLHQFH RU FOLPDWH VHQVLWLYLW\ DUH LQFOXGHG DQG FRUUHFWO\ UHIOHFWHG 7KHVH ZLOO
QHHG WR EH UHYLVHG WR HQVXUH WKDW SURMHFW GHVLJQHUV DUH DZDUH RI FOLPDWH FKDQJH
LVVXHV DQG WKDW FRQFHUQV KDYH EHHQ DSSURSULDWHO\ LQFOXGHG LQ WKH SODQQLQJ SURFHVV

$FWLRQV $ (VWDEOLVK DQG EXLOG WKH FDSDFLW\ RI FOLPDWH FKDQJH )RFDO3RLQWVLQ PLQLVWULHV DQG DJHQFLHV
WRLQFRUSRUDWH FOLPDWH FKDQJH FRQVLGHUDWLRQV LQ DOO SODQQLQJ SURFHVVHV
$ $JUHH GHVLJQ DQG SODQQLQJ SDUDPHWHUV IRU SURMHFW GHVLJQ IRU VHOHFWHG \HDUV
$ 0RGLI\ WKH 3URMHFW 3URIRUPD LQ DQ DSSURSULDWH ZD\

7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\ $OO UHOHYDQW PLQLVWULHV 3ODQQLQJ &RPPLVVLRQ

 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &DSDFLW\ %XLOGLQJ DQG ,QVWLWXWLRQDO 6WUHQJWKHQLQJ

3URJUDPPH 3 6WUHQJWKHQLQJ KXPDQ UHVRXUFH FDSDFLW\

2EMHFWLYH 'HYHORSPHQW RI DGHTXDWH KXPDQ FDSDFLW\ WR HIIHFWLYHO\ PDQDJH FOLPDWH UHVLOLHQW

GHYHORSPHQW SURJUDPPHV DQG WR WDNH SDUW LQ LQWHUQDWLRQDO QHJRWLDWLRQV

-XVWLILFDWLRQ $GHTXDWHO\ WUDLQHG SHRSOH GR QRW FXUUHQWO\ H[LVW LQ WKH FRXQWU\ WR GHYHORS DQG
LPSOHPHQW FOLPDWH FKDQJH SROLFLHV SURJUDPPHV DQG SURMHFWV 'XH WR WKLV ODFN RI
H[SHUWLVH %DQJODGHVK KDV EHHQ XQDEOH WR JUDVS RSSRUWXQLWLHV WR HIIHFWLYHO\ XVH QHZ
JOREDO ILQDQFLDO LQVWUXPHQWV $OVR FOLPDWH FKDQJH QHJRWLDWLRQV KDYH QRZ HQWHUHG D
SKDVH ZKHUH FRQVWDQW WUDFNLQJ DQG WDNLQJ GHFLVLRQV DW VKRUW QRWLFH DUH UHTXLUHG
:KLOH %DQJODGHVK KDV VR IDU KDG EHHQ LQ WKH IRUHIURQW RI VXFK QHJRWLDWLRQV VKH KDV
RIWHQ EHHQ XQDEOH WR WDNH SDUW IXOO\ EHFDXVH RI D VKRUWDJH RI H[KDXVWLYH LQ NH\
DUHDV 7KH $:*/&$ QHJRWLDWLRQV QHHG H[SHUWLVH RI WKH KLJKHVW RUGHU

$YDLODEOH H[SHUWLVH LV QHLWKHU DGHTXDWH QRU DOZD\V RI WKH ULJKW W\SH ,W LV WKHUHIRUH
QHFHVVDU\ WR EXLOG KXPDQ UHVRXUFH FDSDFLW\ LQ DOO WKHVH UHOHYDQW DUHDV DFURVV
*RYHUQPHQW GHSDUWPHQWV SULYDWH EXVLQHVV DQG FLYLO VRFLHW\ DV DOO ZLOO EH LQYROYHG
LQ GLIIHUHQW DVSHFWV RI FOLPDWH FKDQJH PDQDJHPHQW DQG DFWLRQ

$FWLYLWLHV ZLOO LQFOXGH VKRUW DQG ORQJ WUDLQLQJ DW KRPH DQG DEURDG VWXG\ WRXUV
H[FKDQJH SURJUDPPHV DQG ILQDQFLQJ IRU DWWHQGLQJ QHJRWLDWLRQV

$FWLRQV $ (QKDQFH WKH FDSDFLW\ RI *RYHUQPHQW VWDII IRU SROLF\ SURJUDPPH DQG SURMHFW
IRUPXODWLRQ DQG LPSOHPHQWDWLRQ WKURXJK WUDLQLQJ DQG LQ RWKHU ZD\V
$ (QKDQFH FDSDFLW\ RI NH\ VWDII RI *RYHUQPHQW SULYDWH VHFWRU RUJDQLVDWLRQV DQG 1*2V
RQ DFFHVVLQJ LQWHUQDWLRQDO DQG QDWLRQDO &DUERQ DQG FOLPDWH &KDQJH )XQGV
$ (QKDQFH WKH KXPDQ UHVRXUFH FDSDFLW\ ZLWKLQ DQG RXWVLGH *RYHUQPHQW IRU &OLPDWH
&KDQJH QHJRWLDWLRQV
$ (QKDQFH WKH VNLOORIUHVHDUFKHUVIRUFRQGXFWLQJUHVHDUFKRQFOLPDWHFKDQJH

7LPHOLQH 6KRUW WR PHGLXP WHUP

5HVSRQVLELOLW\ $OO UHOHYDQW VHFWRUDO PLQLVWULHV $JHQFLHV 3ULYDWH 6HFWRU 1*2V 8QLYHUVLWLHV DQG
5HVHDUFK 2UJDQLVDWLRQV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7&DSDFLW\EXLOGLQJDQG,QVWLWXWLRQDO6WUHQJWKHQLQJ

3URJUDPPH 36WUHQJWKHQLQJJHQGHUFRQVLGHUDWLRQLQFOLPDWHFKDQJHPDQDJHPHQW

2EMHFWLYH ,QWHJUDWLRQRIJHQGHUFRQVLGHUDWLRQLQDOOFOLPDWHFKDQJHPDQDJHPHQW

-XVWLILFDWLRQ 7KHWKLUG,3&&UHSRWUHFRJQL]HG´7KHLPSDFWVRIFOLPDWHFKDQJHZLOOEH

GLIIHUHQWO\GLVWULEXWHGDPRQJGLIIHUHQWUHJLRQVJHQHUDWLRQVDJHVFODVVHVLQFRPH
JURXSVRFFXSDWLRQVVH[HVµ7KHUHSRUWDOVRDIILUPHGWKDWFOLPDWHFKDQJHZLOO
GLVSURSRUWLRQDWHO\DIIHFWWKHOHDVWGHYHORSHGFRXQWULHVDQGSHRSOHOLYLQJLQSRYHUW\
LQDOOFRXQWULHVH[DFHUEDWLQJLQHTXDOLWLHVLQZHOOEHLQJDQGLQDFFHVVWRIRRGFOHDQ
ZDWHUDQGRWKHUUHVRXUFHV:RPHQGXHWRWKHLUVRFLDOUXOHVGLVFULPLQDWLRQDQG
SRYHUW\ZLOOEHDIIHFWHGSRVVLEO\DWPXFKKLJKHUOHYHOE\WKHDIIHFWVRIFOLPDWH
FKDQJHDQGWKHH[WUHPHFOLPDWLFHYHQWVWKDWRIWHQWUDQVODWHLQWRGLVDVWHU:KLOHWKH
YXOQHUDELOLW\RISRRUZRPHQWRFOLPDWHFKDQJHLVVWURQJO\UHFRJQL]HGDWUHOHYDQW
OLWHUDWXUH7KHLPSRUWDQWUROHWKHZRPHQPD\SOD\LQVXSSRUWLQJKRXVHKROGDQG
FRPPXQLWLHVWRPLWLJDWHDQGDGDSWWRFOLPDWHFKDQJHWKLVDOVRDFNQRZOHGJHG

7KLVSURJUDPPHDLPVWRHVWDEOLVKOLQNEHWZHHQJHQGHUFRQVLGHUDWLRQIRUWKHLU
DSSURSULDWHLQFRRSHUDWLRQLQDOODGDSWDWLRQPLWLJDWLRQVWUDWHJLHVDQGFRPSRQHQW
SURJUDPPH73PDLQVWUHDPLQJFOLPDWHFKDQJHLQQDWLRQDOVHFWRUDODQGVSDWLDO
GHYHORSPHQWSURJUDPPHV+RZHYHUWRSD\VSHFLDODWWHQWLRQWRJHQGHULVVXHVDV
ZHOODVWKHFRQVLGHUDWLRQRIGLVDGYDQWDJHFRPPXQLWLHVWKLVFRPSRQHQWKDVEHHQ
SURSRVHG

:RPHQKDYHDVSHFLDOUROHLQPDQDJHPHQWRIQDWXUDOGLVDVWHUDVULVNDQGYXOQHUDELOLW\
ZLOOLQFUHDVHLQIXWXUHFOLPDWHFKDQJHVFHQDULRV$OOGLVDVWHUPDQDJHPHQWSUDFWLFHV
VKRXOGSD\DWWHQWLRQWRJHQGHUFRQVLGHUDWLRQ

,WLVUHFRJQL]HGWKDWZRPHQLQUXUDOFRPPXQLWLHVSOD\DPDMRUUROHLQIRRGJUDLQ
SURGXFWLRQLQFOXGLQJFRQVHUYDWLRQRIWUDGLWLRQDOYDULHWLHVRIVHHGDQGRWKHU
SRVWKDUYHVWLQJRSHUDWLRQVHWF

,WLVDOVRUHFRJQL]HGWKDWWKHZRPHQKDYHPDMRUUROHLQQDWXUDOUHVRXUFHPDQDJHPHQW
HVSHFLDOO\LQPDQDJHPHQWRIELRGLYHUVLW\DQGIRUHVWU\7KXV5(''KDVVLJQLILFDQWIRU
JHQGHUFRQVLGHUDWLRQ

$FWLRQV $'HYHORSPHQWRIFULWHULDDQGDSSURDFKIRULQFOXVLRQRIJHQGHUFRQVLGHUDWLRQLQDOO
FOLPDWHUHVSRQVHDFWLYLWLHV
$%XLOGWKHFDSDFLW\RIJHQGHUIRFDOSRLQWLQDOOPLQLVWULHVDQGDJHQFLHVWRLQFRUSRUDWH
JHQGHULVVXHVLQDOOFOLPDWHUHVSRQVHDFWLYLWLHV
7LPHOLQH 6KRUW7HUP

5HVSRQVLELOLW\ 0LQLVWU\RI:RPHQDQG&KLOGUHQ$IIDLUV3ODQQLQJ&RPPLVVLRQ0LQLVWU\RI(QYLURQPHQW
DQG)RUHVWV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &DSDFLW\ %XLOGLQJ DQG ,QVWLWXWLRQDO 6WUHQJWKHQLQJ

3URJUDPPH 3 6WUHQJWKHQLQJ LQVWLWXWLRQDO FDSDFLW\ IRU FOLPDWH FKDQJH PDQDJHPHQW

2EMHFWLYH 'HYHORS VWURQJ RUJDQLVDWLRQV WR HIIHFWLYHO\ UHVSRQG WR FOLPDWH FKDQJH

-XVWLILFDWLRQ 0DLQVWUHDPLQJ FOLPDWH FKDQJH LVVXHV LQ QDWLRQDO DQG VHFWRUDO GHYHORSPHQW ZLOO
UHTXLUH VWURQJ RUJDQLVDWLRQV DQG D UREXVW LQVWLWXWLRQDO IUDPHZRUN WR HQVXUH WKDW WKH
DFWLYLWLHV DUH VXVWDLQHG RYHU WKH QH[W VHYHUDO GHFDGHV DQG EH\RQG

6RPH RI WKH RUJDQLVDWLRQV ZLOO EH QHZ HJ FOLPDWH FKDQJHIRFDOSRLQWVLQ PLQLVWULHV

DQG WKHLUDJHQFLHV RWKHUV ZLOO KDYH WR EH UHIRUPHG DQG VWUHQJWKHQHG ,Q DOO FDVHV
RUJDQLVDWLRQV ZLOO QHHG WR EH SURYLGHG ZLWK DGHTXDWH ORJLVWLFV DQG RWKHU IDFLOLWLHV
WKH GHYHORSPHQW RI KXPDQ UHVRXUFH FDSDFLW\ LV VHSDUDWHO\ GHDOW ZLWK XQGHU 73
IRU ZKLFK DGHTXDWH ILQDQFLQJ ZLOO KDYH WR EH HQVXUHG

7KHUH LV D SUHVVLQJ QHHG WR VWUHQJWKHQ D QXPEHU RI H[LVWLQJ RUJDQLVDWLRQV WKDW DUH

DOUHDG\ XQGHUSHUIRUPLQJ LQ LPSOHPHQWLQJ WKH UHJXODU GHYHORSPHQW SURJUDPPH

$FWLRQV $ 6HWWLQJ XS RI PHFKDQLVPV IRU LQWHUPLQLVWHULDO DQG LQWHULQVWLWXWLRQDO FRRUGLQDWLRQ DW

YDULRXV OHYHOV RI WKH *RYHUQPHQW DQG IRU PDQDJLQJ QHZ DGDSWDWLRQ DQG SODQQHG
PLWLJDWLRQ IXQGV
$ 2UJDQLVDWLRQDO UHIRUP DQG VWUHQJWKHQLQJ RI NH\ *RYHUQPHQW DQG RWKHUV DJHQFLHV

7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\ $OO UHOHYDQW VHFWRUDO DJHQFLHV SULYDWH VHFWRU 1*2V DQG RWKHUV
 
%$1*/$'(6+&/,0$7(&+$1*(675$7(*<$1'$&7,213/$1

3URJUDPPH t 73

7KHPH 7 &DSDFLW\ %XLOGLQJ DQG ,QVWLWXWLRQDO 6WUHQJWKHQLQJ

3URJUDPPH 3 0DLQVWUHDPLQJ &OLPDWH &KDQJH LQ WKH 0HGLD

2EMHFWLYH 5DLVLQJ SXEOLF DZDUHQHVV DFURVV WKH FRXQWU\ E\ PDLQVWUHDPLQJ FOLPDWH FKDQJH
LVVXHV
LQ WKH SULQW DQG HOHFWURQLF PHGLD

-XVWLILFDWLRQ %DQJODGHVK PHGLD KDV EHHQ SURDFWLYH LQ PRXQWLQJ SXEOLF DZDUHQHVV RQ FOLPDWH
FKDQJH LVVXHV IRU ODVW WZR GHFDGHV -RXUQDOLVWV KDYH EHHQ SURDFWLYH LQ VHQVLWLVLQJ
WKH FRXQWU\ RQ YDULRXV HQYLURQPHQWDO LVVXHV %XW JLYHQ WKH VFDOH RI FOLPDWHLQGXFHG
DGYHUVH LPSDFWV RQ WKH QDWLRQDO HFRQRP\ OLYHOLKRRGV DQG HFRV\VWHPV WKH SHRSOH
UHTXLUHV WR PRUH DZDUH ZKLOH %DQJODGHVK YLEUDQW SULQW DQG HOHFWURQLF PHGLD FDQ
SOD\ WKDW HIIHFWLYH UROH LQ D YHU\ FRPSUHKHQVLYH PDQQHU WR KHOS EULQJ LQ SRVLWLYH
FKDQJHV LQ SXEOLF RSLQLRQ WR PDNH SROLF\ FKDQJHV 0HGLD FDQ DOVR KHOS WDNH SHRSOH
LQ D FOLPDWHIULHQGO\ ORZFDUERQ GHYHORSPHQW SDWKZD\ %DQJODGHVK PHGLD FDQ DOVR
KHOS UDLVH QDWLRQDO QHJRWLDWLRQ FDSDFLW\ E\ LQIXVLQJ SXEOLF GHEDWH RQ FOLPDWH
FKDQJH LVVXHV LQ ERWK SULQW DQG HOHFWURQLF PHGLD DQG NHHS WUDFN RI RQ JRLQJ
QHJRWLDWLRQ VWUHHWV DV ZDWFKGRJV

$FWLRQV $ &DSDFLW\ %XLOGLQJ DQG 7UDLQLQJ SULQW DQG HOHFWURQLF MRXUQDOLVWV

$ ([SRVXUH YLVLWV WR FOLPDWH FKDQJH KRW VSRWV DFURVV WKHFRXQWU\ DQG WUDFNLQJ JOREDO
QHJRWLDWLRQV
$ 6WDWH RI &OLPDWH &KDQJH 5HSRUWV (DUWK )LOHV )HDWXUHV 3KRWR)HDWXUHV
$ 0HGLD QHWZRUNLQJ

7LPHOLQH ,PPHGLDWH

5HVSRQVLELOLW\ 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV 0LQLVWU\ RI ,QIRUPDWLRQ 3UHVV ,QVWLWXWH RI

%DQJODGHVK