%5,7,6+67$1'$5'

7RWDOTXDOLW\
PDQDJHPHQW
3DUW*XLGHWRPDQDJHPHQWSULQFLSOHV

8'&

NO COPYING WITHOUT BSI PERMISSION EXCEPT AS PERMITTED BY COPYRIGHT LAW

%6


%6

&RPPLWWHHVUHVSRQVLEOHIRUWKLV%ULWLVK
6WDQGDUG
7KHSUHSDUDWLRQRIWKLV%ULWLVK6WDQGDUGZDVHQWUXVWHGE\WKH4XDOLW\
0DQDJHPHQWDQG6WDWLVWLFV6WDQGDUGV3ROLF\&RPPLWWHH406WR7HFKQLFDO
&RPPLWWHH406XSRQZKLFKWKHIROORZLQJERGLHVZHUHUHSUHVHQWHG
$VVRFLDWHG2IILFHV7HFKQLFDO&RPPLWWHH
$VVRFLDWLRQRI&RQVXOWLQJ(QJLQHHUV
$VVRFLDWLRQRI&RQVXOWLQJ6FLHQWLVWV
%ULVWRO4XDOLW\&HQWUH
%ULWLVK&RDO&RUSRUDWLRQ
%ULWLVK*DVSOF
%ULWLVK,QVWLWXWHRI0DQDJHPHQW
%ULWLVK0DULWLPH7HFKQRORJ\
%ULWLVK1RQ)HUURXV0HWDOV)HGHUDWLRQ
%ULWLVK1XFOHDU)XHOVSOF
%ULWLVK3DSHUDQG%RDUG,QGXVWU\)HGHUDWLRQ
%ULWLVK3KRWRJUDSKLF$VVRFLDWLRQ
%ULWLVK4XDOLW\$VVRFLDWLRQ
%ULWLVK5DLOZD\V%RDUG
%ULWLVK6WDQGDUGV6RFLHW\
%ULWLVK6WHHO,QGXVWU\
%ULWLVK7HOHFRPPXQLFDWLRQVSOF
%ULWLVK9DOYHDQG$FWXDWRU0DQXIDFWXUHUV
$VVRFLDWLRQ
%ULWLVK:HOGHG6WHHO7XEH$VVRFLDWLRQ
&DEOHDQG:LUHOHVVSOF
&KDUWHUHG,QVWLWXWHRI0DUNHWLQJ
&KHPLFDO,QGXVWULHV$VVRFLDWLRQ
&RPSXWLQJ6HUYLFHV$VVRFLDWLRQ
&RQVXPHU3ROLF\&RPPLWWHHRI%6,
&RQVXPHUV$VVRFLDWLRQ
'HIHQFH0DQXIDFWXUHUV$VVRFLDWLRQ
'HSDUWPHQWRI7UDGHDQG,QGXVWU\1DWLRQDO
3K\VLFDO/DERUDWRU\
'HSDUWPHQWRI7UDGHDQG,QGXVWU\6WDQGDUGV
DQG4XDOLW\3ROLF\8QLW4XDOLW\'HVLJQ
DQG(GXFDWLRQ'LYLVLRQ
(($WKH$VVRFLDWLRQRIWKH(OHFWURQLFV
7HOHFRPPXQLFDWLRQVDQG%XVLQHVV
(TXLSPHQW,QGXVWULHV

7KLV%ULWLVK6WDQGDUGKDYLQJ
EHHQSUHSDUHGXQGHUWKH
GLUHFWLRQRIWKH4XDOLW\
0DQDJHPHQWDQG6WDWLVWLFV
6WDQGDUGV3ROLF\&RPPLWWHH
ZDVSXEOLVKHGXQGHUWKH
DXWKRULW\RIWKH6WDQGDUGV
%RDUGDQGFRPHV
LQWRHIIHFWRQ
6HSWHPEHU 
%6,

$PHQGPHQWVLVVXHGVLQFHSXEOLFDWLRQ
$PG1R

7KHIROORZLQJ%6,UHIHUHQFHV
UHODWHWRWKHZRUNRQWKLV
VWDQGDUG
&RPPLWWHHUHIHUHQFH406
'UDIWIRUFRPPHQW '&
,6%1

(OHFWULFLW\$VVRFLDWLRQ
(OHFWURQLF&RPSRQHQWV,QGXVWU\)HGHUDWLRQ
(QHUJ\,QGXVWULHV&RXQFLO
(QJLQHHULQJ(TXLSPHQWDQG0DWHULDOV8VHUV
$VVRFLDWLRQ
*$0%,&$%($0$/WG
*XLOGIRUG&RXQW\&ROOHJHRI7HFKQRORJ\
+HDOWKDQG6DIHW\([HFXWLYH
,QVWLWXWHRI4XDOLW\$VVXUDQFH
,QVWLWXWHRI7UDGLQJ6WDQGDUGV$GPLQLVWUDWLRQ
,QVWLWXWHRI&KHPLFDO(QJLQHHUV
,QVWLWXWHRI0HFKDQLFDO(QJLQHHUV
0HGLFDO6WHULOH3URGXFWV$VVRFLDWLRQ
0HUFXU\&RPPXQLFDWLRQV/LPLWHG
0LQLVWU\RI'HIHQFH
1DWLRQDO$FFUHGLWDWLRQ&RXQFLORI&HUWLILFDWLRQ
%RGLHV
1DWLRQDO$VVRFLDWLRQRI3OXPELQJ+HDWLQJ
DQG0HFKDQLFDO6HUYLFHV
1DWLRQDO+RXVHEXLOGLQJ&RXQFLO
1DWLRQDO4XDOLW\'HYHORSPHQW6XSSRUW
1HWZRUN
3(5$,QWHUQDWLRQDO
3RZHU*HQHUDWLRQ&RQWUDFWRUV$VVRFLDWLRQ
%($0$/WG
5R\DO,QVWLWXWLRQRI&KDUWHUHG6XUYH\RUV
6RFLHW\RI(QJLQHHUV,QFRUSRUDWHG
6RFLHW\RI0RWRU0DQXIDFWXUHUVDQG7UDGHUV
/LPLWHG
6ROYHQWV,QGXVWU\$VVRFLDWLRQ/WG
8QLYHUVLW\RI6DOIRUG
:DWHU6HUYLFHV$VVRFLDWLRQRI(QJODQGDQG
:DOHV

'DWH

&RPPHQWV

%6

&RQWHQWV
&RPPLWWHHVUHVSRQVLEOH
)RUHZRUG








,QWURGXFWLRQ
6FRSH
5HIHUHQFHV
'HILQLWLRQV
)XQGDPHQWDOFRQFHSWV
,PSOHPHQWLQJWRWDOTXDOLW\PDQDJHPHQW
5ROHRIVXSSRUWLQJWHFKQLTXHV









$QQH[$LQIRUPDWLYH([DPSOHRIDW\SLFDOSURFHVVRIWRWDO

TXDOLW\PDQDJHPHQW
$QQH[%LQIRUPDWLYH([DPSOHRIDV\VWHPDWLFLPSURYHPHQWV
SURFHVV

)LJXUH6LPSOHSURFHVVGLDJUDP
)LJXUH&KDQJLQJUROHRISURFHVVRZQHU




7DEOH6HOHFWLQJDQDSSURSULDWHWRRORUWHFKQLTXH

/LVWRIUHIHUHQFHV

%6,

3DJH
,QVLGHIURQWFRYHU
LL

,QVLGHEDFNFRYHU

%6

)RUHZRUG
7KLV3DUWRI%6KDVEHHQSUHSDUHGXQGHUWKHGLUHFWLRQRIWKH4XDOLW\
0DQDJHPHQWDQG6WDWLVWLFV6WDQGDUGV3ROLF\&RPPLWWHH
%6LVSXEOLVKHGLQWZR3DUWVDVIROORZV
3DUW *XLGHWRPDQDJHPHQWSULQFLSOHV
3DUW *XLGHWRTXDOLW\LPSURYHPHQWPHWKRGV
7RWDOTXDOLW\PDQDJHPHQWDVVXUHVPD[LPXPHIIHFWLYHQHVVDQGHIILFLHQF\ZLWKLQ
DQRUJDQL]DWLRQE\SXWWLQJLQSODFHSURFHVVHVDQGV\VWHPVZKLFKZLOOHQVXUHWKDW
HYHU\DVSHFWRILWVDFWLYLW\LVDOLJQHGWRVDWLVI\FXVWRPHUQHHGVDQGDOORWKHU
REMHFWLYHVZLWKRXWZDVWHRIHIIRUWDQGXVLQJWKHIXOOSRWHQWLDORIHYHU\SHUVRQLQ
WKHRUJDQL]DWLRQ
7KLVSKLORVRSK\UHFRJQL]HVWKDWFXVWRPHUVDWLVIDFWLRQKHDOWKVDIHW\
HQYLURQPHQWDOFRQVLGHUDWLRQVDQGEXVLQHVVREMHFWLYHVDUHPXWXDOO\GHSHQGHQW,W
LVDSSOLFDEOHZLWKLQDQ\RUJDQL]DWLRQ
,QYHVWPHQWLQPDWHULDOWKLQJVLVDQDFFHSWHGDQGZHOOGHYHORSHGPDQDJHPHQW
SUDFWLFHEXWWKHDSSOLFDWLRQRIWRWDOTXDOLW\PDQDJHPHQWSULPDULO\LQYROYHV
LQYHVWPHQWLQWLPHDQGSHRSOHWLPHWRWUDLQSHRSOHWLPHWRLPSOHPHQWQHZ
FRQFHSWVWLPHIRUSHRSOHWRUHFRJQL]HWKHEHQHILWVDQGWLPHIRUSHRSOHWRPRYH
IRUZDUGLQWRQHZDQGGLIIHUHQWFRPSDQ\FXOWXUHV(YHU\RUJDQL]DWLRQKDVWRJLYH
WKHVHFRPPLWPHQWVLIWRWDOTXDOLW\PDQDJHPHQWLVWRVXFFHHG
7KLV3DUWRI%6 JLYHVJXLGDQFHWRVHQLRUPDQDJHPHQWRQWKHHVWDEOLVKPHQW
RIPDQDJHPHQWSULQFLSOHVZKLFKZLOOPD[LPL]HDQRUJDQL]DWLRQVHIIHFWLYHQHVV
$%ULWLVK6WDQGDUGGRHVQRWSXUSRUWWRLQFOXGHDOOWKHQHFHVVDU\SURYLVLRQVRID
FRQWUDFW8VHUVRI%ULWLVK6WDQGDUGVDUHUHVSRQVLEOHIRUWKHLUFRUUHFWDSSOLFDWLRQ
&RPSOLDQFHZLWKD%ULWLVK6WDQGDUGGRHVQRWRILWVHOIFRQIHULPPXQLW\
IURPOHJDOREOLJDWLRQV

6XPPDU\RISDJHV
7KLVGRFXPHQWFRPSULVHVDIURQWFRYHUDQLQVLGHIURQWFRYHUSDJHVLDQGLL
SDJHV WR DQLQVLGHEDFNFRYHUDQGDEDFNFRYHU
7KH%6,FRS\ULJKWQRWLFHGLVSOD\HGLQWKLVGRFXPHQWLQGLFDWHVZKHQWKH
GRFXPHQWZDVODVWLVVXHG

LL

%6,

%6

,QWURGXFWLRQ

5HIHUHQFHV

7KHREMHFWLYHVRIDQRUJDQL]DWLRQRIZKLFKFXVWRPHU
VDWLVIDFWLRQLVDPDMRUFRQVLGHUDWLRQVKRXOGEH
NQRZQDQGXQGHUVWRRGE\DOOPHPEHUVRIWKH
RUJDQL]DWLRQ

1RUPDWLYHUHIHUHQFHV

7KLV%ULWLVK6WDQGDUGJLYHVJXLGDQFHWR
PDQDJHPHQWRQZD\VWRPDNHWKHRUJDQL]DWLRQ
VWUXFWXUHPDQDJHPHQWV\VWHPDQGTXDOLW\V\VWHP
PRUHHIIHFWLYHLQPHHWLQJRUJDQL]DWLRQREMHFWLYHVE\
LPSURYLQJDQGKDUPRQL]LQJWKHVNLOOVRIWKH
ZRUNIRUFH2UJDQL]DWLRQVYDU\JUHDWO\LQVL]H
REMHFWLYHVDQGWKHSURFHGXUHVXVHGDQGMXGJHPHQW
QHHGVWREHH[HUFLVHGZKHQXVLQJWKHJXLGDQFH
JLYHQ
7KHJXLGDQFHVKRZVKRZHYHU\ERG\LQWKH
RUJDQL]DWLRQVKRXOGEHDZDUHWKDWWKH\KDYH
LQWHUQDOFXVWRPHUVDQGVXSSOLHUVDVZHOODVWKRVH
H[WHUQDOWRWKHRUJDQL]DWLRQDQGWKDWSDUWLFLSDWLRQ
E\DOODQGOHDGHUVKLSIURPPDQDJHPHQWLVHVVHQWLDO
WRSURPRWHWKHIXOOSRWHQWLDORIWKHRUJDQL]DWLRQ
7KHJXLGHHPSKDVL]HVWKHQHHGIRUPHDVXUHPHQWRI
SHUIRUPDQFHDQGDQDO\VLVWRFRQILUPWKDWSODQQLQJ
IRUSUREOHPVROYLQJKDVOHGWRTXDOLW\LPSURYHPHQW
,QDGGLWLRQWKHPRQLWRULQJRISHUIRUPDQFHDQG
UHYLVLRQRIV\VWHPVVKRXOGEHDFRQWLQXLQJDFWLYLW\
LQZKLFKWKHXVHRIGLDJQRVWLFWRROVLVDGYRFDWHG
,QYHVWPHQWLQSHRSOHDQGWUDLQLQJDUHSUREDEO\WKH
WZRPRVWLPSRUWDQWHOHPHQWVLQDFKLHYLQJWRWDO
TXDOLW\PDQDJHPHQW
$VHULRXVDWWHPSWKDVEHHQPDGHWRSURGXFHDJXLGH
WKDWLVQRWSUHVFULSWLYHEXWZKLFKJLYHVJXLGDQFHWR
PDQDJHPHQWVRWKDWLWFDQEHDGDSWHGWRVXLW
SUHYDLOLQJREMHFWLYHVDQGPHWKRGRORJ\7KH
REMHFWLYHVRIDOORUJDQL]DWLRQVVKRXOGLQFOXGHWKHLU
UHVSRQVLELOLWLHVWRZDUGVVRFLHW\LQFOXGLQJWKHKHDOWK
DQGVDIHW\RISHRSOHZLWKLQWKHRUJDQL]DWLRQWKH
FXVWRPHUUHFHLYLQJWKHSURGXFWRUVHUYLFHDQGWKH
QHHGWRSURWHFWWKHHQYLURQPHQW7KHPHDQLQJRIWKH
WHUPFXVWRPHUVDWLVIDFWLRQVKRXOGEHWDNHQLQLWV
EURDGHVWVHQVHZKHQXVHGLQWKLVVWDQGDUG

6FRSH
7KLV3DUWRI%6 JLYHVJXLGDQFHRQWKH
HVWDEOLVKPHQWRIPDQDJHPHQWSULQFLSOHVZKLFKZLOO
PD[LPL]HHIIHFWLYHQHVVLQPHHWLQJRUJDQL]DWLRQDO
REMHFWLYHV,WDGGUHVVHVWKHIRUPXODWLRQRIREMHFWLYHV
DQGWKHLULPSOHPHQWDWLRQWKURXJKRXWDQHQWLUH
RUJDQL]DWLRQ

7KLV3DUWRI%6 LQFRUSRUDWHVE\UHIHUHQFH
SURYLVLRQVIURPVSHFLILFHGLWLRQVRIRWKHU
SXEOLFDWLRQV7KHVHQRUPDWLYHUHIHUHQFHVDUHFLWHG
DWWKHDSSURSULDWHSRLQWVLQWKHWH[WDQGWKH
SXEOLFDWLRQVDUHOLVWHGRQWKHLQVLGHEDFNFRYHU
6XEVHTXHQWDPHQGPHQWVWRRUUHYLVLRQVRIDQ\RI
WKRVHSXEOLFDWLRQVDSSO\WRWKLV3DUWRI%6 RQO\
ZKHQLQFRUSRUDWHGLQLWE\XSGDWLQJRUUHYLVLRQ
,QIRUPDWLYHUHIHUHQFHV
7KLV3DUWRI%6 UHIHUVWRRWKHUSXEOLFDWLRQV
WKDWSURYLGHLQIRUPDWLRQRUJXLGDQFH(GLWLRQVRI
WKHVHSXEOLFDWLRQVFRUUHFWDWWKHWLPHRILVVXHRIWKLV
VWDQGDUGDUHOLVWHGRQWKHLQVLGHEDFNFRYHUEXW
UHIHUHQFHVKRXOGEHPDGHWRWKHODWHVWHGLWLRQV

'HILQLWLRQV
)RUWKHSXUSRVHVRIWKLV3DUWRI%6 WKH
GHILQLWLRQVJLYHQLQ%6 DSSO\WRJHWKHUZLWKWKH
IROORZLQJ

WRWDOTXDOLW\PDQDJHPHQW740
PDQDJHPHQWSKLORVRSK\DQGFRPSDQ\SUDFWLFHV
WKDWDLPWRKDUQHVVWKHKXPDQDQGPDWHULDO
UHVRXUFHVRIDQRUJDQL]DWLRQLQWKHPRVWHIIHFWLYH
ZD\WRDFKLHYHWKHREMHFWLYHVRIWKHRUJDQL]DWLRQ
127(  7KHREMHFWLYHVRIDQRUJDQL]DWLRQPD\LQFOXGH
FXVWRPHUVDWLVIDFWLRQEXVLQHVVREMHFWLYHVVXFKDVJURZWKSURILW
RUPDUNHWSRVLWLRQRUWKHSURYLVLRQRIVHUYLFHVWRWKHFRPPXQLW\
HWFEXWWKH\VKRXOGDOZD\VEHFRPSDWLEOHZLWKWKHUHTXLUHPHQWV
RIVRFLHW\ZKHWKHUOHJLVODWHGRUDVSHUFHLYHGE\WKHRUJDQL]DWLRQ
127(  $QRUJDQL]DWLRQRSHUDWHVZLWKLQWKHFRPPXQLW\DQG
PD\GLUHFWO\VHUYHLWWKLVPD\UHTXLUHDEURDGFRQFHSWLRQRIWKH
WHUPFXVWRPHU
127(  7KHXVHRIWKLVDSSURDFKJRHVXQGHUPDQ\RWKHUQDPHV
VRPHRIZKLFKDUHDVIROORZV
FRQWLQXRXVTXDOLW\LPSURYHPHQW
WRWDOTXDOLW\
WRWDOEXVLQHVVPDQDJHPHQW
FRPSDQ\ZLGHTXDOLW\PDQDJHPHQW
FRVWHIIHFWLYHTXDOLW\PDQDJHPHQW


SURFHVV
DQ\DFWLYLW\WKDWDFFHSWVLQSXWVDGGVYDOXHVWR
WKHVHLQSXWVIRUFXVWRPHUVDQGSURGXFHVRXWSXWVIRU
WKHVHFXVWRPHUV7KHFXVWRPHUVPD\EHHLWKHU
LQWHUQDORUH[WHUQDOWRWKHRUJDQL]DWLRQ
127(  (YHU\DFWLYLW\ZLWKLQDQRUJDQL]DWLRQFRPSULVHVRQHRU
PRUHSURFHVVHV )LJXUHLOOXVWUDWHVDVDPSOHSURFHVVGLDJUDP
127(  ,QSXWVFRQWUROVDQGUHVRXUFHVDUHDOOVXSSOLHGWRWKH
SURFHVV

%6,

%6


VXSSOLHU
DQ\SHUVRQVLQWHUQDORUH[WHUQDOWRWKH
RUJDQL]DWLRQZKRVXSSOLHVVXSSO\DQLQSXWWRWKH
SURFHVV
127( 7KHSURFHVVRZQHULVQRUPDOO\ERWKDFXVWRPHUDQGD
VXSSOLHU
)LJXUHLOOXVWUDWHVWKHFKDQJLQJUROHRIWKHSURFHVVRZQHU


RUJDQL]DWLRQ
DPDQDJHGJURXSRISHUVRQVDQGUHVRXUFHVIRUPHGWR
FDUU\RXWDIXQFWLRQ
127( 7KHRUJDQL]DWLRQFRXOGEHDFRPPHUFLDOHQWHUSULVH
JRYHUQPHQWERG\SXEOLFVHUYLFHRUDFKDULW\

)LJXUH6LPSOHSURFHVVGLDJUDP

PLVVLRQVWDWHPHQW
EURDGVWDWHPHQWRIPDLQDLPVRIDQRUJDQL]DWLRQ
127( 7KHPLVVLRQVWDWHPHQWIRUDWRWDORUJDQL]DWLRQLVXVXDOO\
FRQFLVHDQGLVFRPPXQLFDWHGWRHYHU\HPSOR\HH3DUWVRIDQ
RUJDQL]DWLRQPD\DOVRGHFODUHWKHLUDLPVE\WKHVHZLOOEHPRUH
GHWDLOHGDQGVSHFLILFZKLOHVWLOOVXSSRUWLQJWKHRYHUDOOREMHFWLYHV


SURFHVVRZQHU
WKHSHUVRQUHVSRQVLEOHIRUSHUIRUPLQJDQGRU
FRQWUROOLQJWKHDFWLYLW\

FXVWRPHU
DQ\SHUVRQVLQWHUQDORUH[WHUQDOWRWKH
RUJDQL]DWLRQZKRUHFHLYHVWKHRXWSXWRIWKH
SURFHVV

)XQGDPHQWDOFRQFHSWV
*HQHUDO
7KHIROORZLQJLQGLYLGXDOFRQFHSWVVKRXOGEH
FRQVLGHUHGZKHQDSSO\LQJWKHSULQFLSOHVRIWRWDO
TXDOLW\PDQDJHPHQW
&RPPLWPHQW
7KHFRPPLWPHQWWRWRWDOTXDOLW\PDQDJHPHQWE\
WKHFKLHIH[HFXWLYHLVHVVHQWLDODQGSURPRWLRQRI
WKLVFRQFHSWWRDOOOHYHOVDQGDFWLYLWLHVRIWKH
RUJDQL]DWLRQLVIXQGDPHQWDOWRLWVVXFFHVV,WVKRXOG
EHDFKLHYHGE\LQGLYLGXDOLQYROYHPHQWLQ
DFFRXQWDELOLW\IRUDQGGHYRWLRQWRFRQWLQXRXV
LPSURYHPHQWZLWKPHDVXUDEOHOHYHOVRI
SHUIRUPDQFH
,WLVHVVHQWLDOWKDWWKLVLQYROYHVWKHERDUGHYHU\
GHSDUWPHQWIXQFWLRQDQGSURFHVVDQGWKHDFWLYH
FRPPLWPHQWRIDOOWRPHHWLQJFXVWRPHUQHHGV,Q
WKLVUHJDUGHYHU\RQHVKRXOGEHDZDUHRIKLVKHU
LQGLYLGXDOFXVWRPHUVDQGVXSSOLHUVZKHWKHU
LQWHUQDORUH[WHUQDOWRWKHRUJDQL]DWLRQ

)LJXUH&KDQJLQJUROHRISURFHVVRZQHU

%6,

%6

&XVWRPHUVDWLVIDFWLRQ
8QGHUVWDQGLQJDQGVDWLVI\LQJFXVWRPHUQHHGVDQG
H[SHFWDWLRQVVKRXOGEHDNH\REMHFWLYH0DQ\
PHPEHUVRIDQRUJDQL]DWLRQGRQRWKDYHGLUHFW
FRQWDFWZLWKWKHH[WHUQDOFXVWRPHU
4XDOLW\ORVVHV
4XDOLW\ORVVHVDUHORVVHVFDXVHGE\WKHIDLOXUHWR
XWLOL]HPRVWHIIHFWLYHO\DQGHIILFLHQWO\WKHSRWHQWLDO
RIKXPDQILQDQFLDODQGPDWHULDOUHVRXUFHVLQD
SURFHVV6RPHH[DPSOHVRITXDOLW\ORVVHVDUHDV
IROORZV
DORVVRIFXVWRPHUVDWLVIDFWLRQ
EORVVRIRSSRUWXQLW\WRDGGPRUHYDOXHWR
WKHFXVWRPHU

,PSOHPHQWLQJWRWDOTXDOLW\
PDQDJHPHQW
*HQHUDO
$VXFFHVVIXORUJDQL]DWLRQZLOOEHVNLOOHGDW
GHYHORSLQJDQGDSSO\LQJDUDQJHRIDSSURSULDWH
V\VWHPVLPSURYHPHQWWRROVDQGWHFKQLTXHV
$OWKRXJKDSSOLFDWLRQRIDQ\RIWKHWHFKQLTXHV
UHIHUHQFHGZLOOJLYHVRPHLQFUHPHQWDO
LPSURYHPHQWWKHLUIXOOSRWHQWLDOFDQRQO\EH
UHDOL]HGLIWKH\DUHDSSOLHGDQGFRRUGLQDWHG
VHH 7DEOH
,QPRVWRUJDQL]DWLRQVRYHUFRPLQJUHVLVWDQFHWR
FKDQJHUHTXLUHVSDUWLFXODUDWWHQWLRQWRWKH
IROORZLQJ

WKHRUJDQL]DWLRQ

DFUHDWLQJDQDSSURSULDWHRUJDQL]DWLRQVWUXFWXUH

VRFLHW\

ELPSOHPHQWLQJSURFHVVPDQDJHPHQWFRQFHSWV
VHH 

FORVVGXHWRZDVWHRUPLVXVHRIUHVRXUFHV
SHRSOHVKHDOWK
SURSHUW\GDPDJH
SURFHVVLQWHUUXSWLRQ
3DUWLFLSDWLRQE\DOO
7KHWRWDOVWUHQJWKVDQGDELOLWLHVRIDOOPHPEHUVRI
DQRUJDQL]DWLRQVKRXOGEHIXOO\DQGHIIHFWLYHO\
XWLOL]HGDQGWKH\VKRXOGEHUHFRJQL]HGDVOLQNVLQD
FKDLQ
3URFHVVPHDVXUHPHQWV
3URFHVVPHDVXUHPHQWVKRXOGEHDSSOLHGWRDOO
RUJDQL]DWLRQDODFWLYLWLHV
&RQWLQXRXVLPSURYHPHQWV
7KHPHDQVRILPSURYHPHQWWRSHRSOHDQGSURFHVV
SHUIRUPDQFHVQHHGVWREHFRQWLQXDOO\VRXJKWDQG
PRQLWRUHGVHH%6 
3UREOHPLGHQWLILFDWLRQ
3URYLVLRQIRULGHQWLILFDWLRQDQGUHVROXWLRQRI
SRWHQWLDODQGH[LVWLQJSUREOHPVRQDFRQWLQXRXV
EDVLVLVHVVHQWLDO
$OLJQPHQWRIFRUSRUDWHREMHFWLYHVDQG
LQGLYLGXDODWWLWXGHV
5HPRYDORISUHMXGLFHVDQGUHVWULFWLYHDSSURYDOWKDW
LQKLELWWKHHIIHFWLYHQHVVRIWKHRUJDQL]DWLRQQHHGV
FRQWLQXRXVDWWHQWLRQ
3HUVRQDODFFRXQWDELOLW\
5HFRJQLWLRQRILQGLYLGXDOUHVSRQVLELOLW\DQG
DXWKRULW\VKRXOGEHDFFHSWHGE\DOO
3HUVRQDOGHYHORSPHQW
7KHUHVKRXOGEHFRQWLQXRXVDSSUDLVDOWUDLQLQJDQG
GHYHORSPHQWRILQGLYLGXDOVDWDOOOHYHOV

%6,

FV\VWHPDWLFDOO\PHDVXULQJSHUIRUPDQFHDQG
UHFRJQL]LQJDFKLHYHPHQW
GLQWURGXFLQJLPSURYHPHQWSODQQLQJWHFKQLTXHV
HWUDLQLQJ
127( 6HHDQQH[$IRUDQH[DPSOHRIDW\SLFDOSURFHVVIRUWRWDO
TXDOLW\PDQDJHPHQW

&UHDWLQJDSSURSULDWHRUJDQL]DWLRQDO
VWUXFWXUHV
4XDOLW\PDQDJHPHQWLVDFKLHYHGWKURXJKWKH
RQJRLQJLQFUHPHQWDOLPSURYHPHQWRIDQ
RUJDQL]DWLRQVSURFHVVHV7KLVLQYDULDEO\FUHDWHVD
QHHGWRFRQWLQXDOO\UHYLHZWKHDSSURSULDWHQHVVRI
WKHEXVLQHVVRUJDQL]DWLRQDOVWUXFWXUHVDQGFKDQJH
WKHPZKHUHQHFHVVDU\
&KDQJHVWRWKHPDQDJHPHQWVWUXFWXUHPD\EH
QHFHVVDU\LQWKHIROORZLQJDUHDV
DWKHPDQDJHPHQWSURFHVVHVRIWKHRUJDQL]DWLRQ
VXFKDVUHZDUGRUSD\PHQWUHFRJQLWLRQDQG
VWUDWHJLFSODQQLQJ
EWKHPHWKRGVRIUHVRXUFHDOORFDWLRQ
FWKHDGPLQLVWUDWLYHVXSSRUWSURFHVVHVVXFKDV
VHFUHWDULDOFOHULFDODQGSXUFKDVLQJ
GEXLOGLQJDQGPDLQWDLQLQJDKXPDQ
HQYLURQPHQWWKDWDOORZVWKHPHPEHUVRIWKH
RUJDQL]DWLRQWRLPSURYHTXDOLW\FRQWLQXDOO\EDVHG
RQPXWXDOWUXVWDQGFROODERUDWLRQ
HSODQQHGWUDLQLQJIRUDOOPHPEHUVRIWKH
RUJDQL]DWLRQ
IWKHZRUNSURFHVVHVDQGSURFHGXUHVRIWKH
RUJDQL]DWLRQ

%6

7DEOH6HOHFWLQJDQDSSURSULDWHWRRORUWHFKQLTXH
7RRORUWHFKQLTXH

'DWDFROOHFWLRQIRUP

:KHQWRVHOHFW

*DWKHUDYDULHW\RIGDWDLQDV\VWHPDWLFIDVKLRQIRUDFOHDUDQG
REMHFWLYHSLFWXUHRIWKHIDFWV

7RROVIRUQRQQXPHULFDOGDWD
$IILQLW\GLDJUDP

2UJDQL]HLQWRJURXSLQJVDODUJHQXPEHURILGHDVRSLQLRQVLVVXHVRU
RWKHUFRQFHUQV

%HQFKPDUNLQJ

0HDVXUH\RXUSURFHVVDJDLQVWWKRVHRIUHFRJQL]HGOHDGHUV

%UDLQVWRUPLQJ

*HQHUDWHFODULI\DQGHYDOXDWHDVL]HDEOHOLVWRILGHDVSUREOHPVRU
LVVXHV

&DXVHDQGHIIHFWGLDJUDP

6\VWHPDWLFDOO\DQDO\VHFDXVHDQGHIIHFWUHODWLRQVKLSVDQGLGHQWLI\
SRWHQWLDOURRWFDXVHVRIDSUREOHP

)ORZFKDUW

'HVFULEHDQH[LVWLQJSURFHVVGHYHORSPRGLILFDWLRQVRUGHVLJQDQ
HQWLUHO\QHZSURFHVV

7UHHGLDJUDP

%UHDNGRZQDVXEMHFWLQWRLWVEDVLFHOHPHQWV

7RROVIRUQXPHULFDOGDWD
&RQWUROFKDUW

0RQLWRUWKHSHUIRUPDQFHRIDSURFHVVZLWKIUHTXHQWRXWSXWVWRGHWHU
PLQHLILWVSHUIRUPDQFHUHYHDOVQRUPDOYDULDWLRQVRU
RXWRIFRQWUROFRQGLWLRQV

+LVWRJUDP

'LVSOD\WKHGLVSHUVLRQRUVSUHDGRIGDWD

3DUHWRGLDJUDP

,GHQWLI\PDMRUIDFWRUVDQGGLVWLQJXLVKWKHPRVWLPSRUWDQWFDXVHVRI
TXDOLW\ORVVHVIURPWKHOHVVVLJQLILFDQWRQHV

6FDWWHUGLDJUDPV

'LVFRYHUFRQILUPRUGLVSOD\UHODWLRQVKLSVEHWZHHQWZRVHWVRIGDWD

127(

7KHVHWRROVDUHGHVFULEHGLQ%6 

7KHDGPLQLVWUDWLYHDFWLYLWLHVVXFKDVW\SLQJ
ILQDQFHSXUFKDVLQJVWRUHVUHSURGXFWLRQVHUYLFLQJ
HWFWKDWPD\EHDSSDUHQWO\RXWVLGHWKHPDLQVWUHDP
REMHFWLYHVRURQO\SHULSKHUDOWRWKHREMHFWLYHVKRXOG
EHILUPO\LQFOXGHGDVSURFHVVHVDQGJLYHQJRDOV
UHODWLQJWRWKHRYHUDOOEXVLQHVVREMHFWLYHVDQGWKHLU
RZQFXVWRPHUUHTXLUHPHQWV
,PSOHPHQWLQJSURFHVVPDQDJHPHQW
FRQFHSWV
:KLOVWWKHRUJDQL]DWLRQDOVWUXFWXUHDGRSWHGZLOO
YDU\IURPFRPSDQ\WRFRPSDQ\WKHUHLVDFRPPRQ
QHHGWRHQVXUHWKDWPDQDJHPHQWUHVSRQVLELOLWLHVIRU
WKHSURFHVVHVHVSHFLDOO\WKRVHWKDWIORZDFURVV
RUJDQL]DWLRQDOERXQGDULHVDUHFOHDUO\GHILQHG
LQFOXGLQJWKRVHIRUKHDOWKDQGVDIHW\DQGWKDWWKHVH
SURFHVVHVDQGWKHLUFRQVWLWXHQWSDUWVFRQWULEXWHWR
WKHRYHUDOOEXVLQHVVREMHFWLYHV:LWKLQHDFKSURFHVV
WKHUHVSRQVLELOLWLHVRIPDQDJHPHQWDQGWKHSURFHVV
RZQHULQFOXGHWKHIROORZLQJ
DGHILQLQJDQGDJUHHLQJWKHSXUSRVHRIHDFK
SURFHVVDQGLWVUHODWLRQVKLSZLWKRYHUDOOFRPSDQ\
EXVLQHVVREMHFWLYHV
ELGHQWLI\LQJERWKLQWHUQDODQGH[WHUQDO
FXVWRPHUVDQGGHWHUPLQLQJWKHLUQHHGVDQG
H[SHFWDWLRQV

FLGHQWLI\LQJWKHQHHGVDQGH[SHFWDWLRQVRIWKH
SURFHVVRZQHUWRKLVKHUVXSSOLHUV
GVHWWLQJDSSURSULDWHSHUIRUPDQFHVWDQGDUGVIRU
WKHNH\DFWLYLWLHVRIWKHSURFHVV
HLQLWLDWLQJDV\VWHPDWLFPHDVXUHPHQWRISURFHVV
SHUIRUPDQFHFRXSOHGZLWKWKHVHDUFKIRU
LPSURYHPHQWRSSRUWXQLWLHV
7KHSURJUDPPHIRULPSOHPHQWDWLRQRIDQ\FKDQJHV
WRV\VWHPVRUSURFHGXUHVVKRXOGWDNHDFFRXQWRI
WKHLUUHODWLYHLPSRUWDQFH
7KHUHFDQEHDQDWXUDOUHVLVWDQFHWRFKDQJHDQGIRU
WKLVUHDVRQQHZPHWKRGVIRUWKHRSHUDWLRQVRIDQ
RUJDQL]DWLRQVKRXOGEHZHOOSODQQHGDQGPRQLWRUHG
0HDVXUHPHQWRISHUIRUPDQFH
7KHRUJDQL]DWLRQVPDQDJHPHQWVKRXOGUHYLHZLWV
H[LVWLQJV\VWHPRISHUIRUPDQFHPHDVXUHPHQWDQG
HQVXUHWKDWREMHFWLYHGDWDEDVHGPHDVXUHPHQW
V\VWHPVDUHLQSODFHIRUWUDFNLQJWKHSHUIRUPDQFHRI
DOONH\IXQFWLRQVDQGSURFHVVHV1HZO\DGRSWHG
PHDVXUHVVKRXOGLQFOXGHWKHNH\DWWULEXWHVRIWKH
IXQFWLRQRUSURFHVVLQFOXGLQJIRUH[DPSOHFRVW
WLPHIOH[LELOLW\DQGTXDOLW\WKHVHVKRXOGEHDJUHHG
EHWZHHQWKHSURFHVVRZQHUDQGWKHSURFHVV
FXVWRPHU

%6,

%6

,QGLFDWRUVRISURFHVVHIILFLHQF\PD\EHEDVHGRQ
ODERXUFDSLWDODQGPDWHULDOXWLOL]DWLRQVFUDS
UHZRUNVFUHHQLQJUHDGMXVWPHQWF\FOHWLPHV
ZDLWLQJWLPHORVWWLPHXQQHFHVVDULO\UHGXQGDQW
GHVLJQLPSUDFWLFDEOHWROHUDQFHVH[FHVVLYHVWRFN
DQGRWKHUFRVWVRIQRQFRQIRUPDQFH
6HH%6 DQG%6
0HDVXUHVRIFXVWRPHUVDWLVIDFWLRQPD\EHEDVHGRQ
FXVWRPHUVXUYH\VVXUYH\VRIFRPSHWLQJSURGXFWV
DQGVHUYLFHVURXWLQHLQVSHFWLRQVE\VHUYLFH
SHUVRQQHOLQIRUPDWLRQVDOHVDQGVHUYLFHVWDII
FXVWRPHUFRPSODLQWVDQGFODLPVDQGRWKHUV
([LVWLQJILQDQFLDOPHDVXUHVVXFKDVVFUDSUHMHFW
DQGUHSODFHPHQWFRVWVFDQEHXVHGRUPHDVXUHVRI
WLPHWRFRPSOHWHSURFHVVRUGHOD\WLPHRIWKH
SURFHVVGHOLYHU\WRFXVWRPHU
6RPHRIWKHVHPHDVXUHPHQWV\VWHPVPD\EH
XQIDPLOLDUWRWKHHPSOR\HHVDQGDSSURSULDWH
WUDLQLQJDQGLQYROYHPHQWSULRUWRWKHLULQWURGXFWLRQ
LVUHFRPPHQGHG
,QWURGXFLQJLPSURYHPHQWSODQQLQJ
WHFKQLTXHV
3ODQQLQJTXDOLW\LPSURYHPHQWLPSOHPHQWLQJWKH
SODQDQDO\VLQJWKHUHVXOWVDQGUHSODQQLQJLVD
FRQWLQXRXVF\FOH
,WZLOOEHQHFHVVDU\WRUHYLHZWKHH[LVWLQJSODQQLQJ
SURFHVVWRHQVXUHWKDWLQWHUUHODWHGLPSURYHPHQW
SODQVDUHGHSOR\HGDWDOOOHYHOVRIWKHRUJDQL]DWLRQ
DVIROORZV
DFRUSRUDWH
EGHSDUWPHQWXQLW
FSURFHVV
GLQGLYLGXDO
:KHQLQLWLDWLQJWKLVSURFHVVLWLVHVVHQWLDOWRHQVXUH
WKDWJRDOVIRULPSURYHPHQWDUHDJUHHGDQG
LPSOHPHQWHGIURPWKHWRSGRZQ6WDIIFRPPLWPHQW
WRFKDQJHLVPD[LPL]HGZKHQWKHLQGLYLGXDOV
DIIHFWHGE\RURSHUDWLQJWKHSURFHVVRUDQ\FKDQJHV
WRLWDUHFORVHO\LQYROYHGLQWKHJHQHUDWLRQDQG
GHSOR\PHQWRIWKHLPSURYHPHQWSODQV
7UDLQLQJ
7UDLQLQJSURJUDPPHVDUHLPSRUWDQWLQFUHDWLQJDQG
PDLQWDLQLQJDQHQYLURQPHQWIRUTXDOLW\
LPSURYHPHQW$OOPHPEHUVRIDQRUJDQL]DWLRQ
LQFOXGLQJWKHKLJKHVWOHYHOVRIPDQDJHPHQWVKRXOG
EHWUDLQHGLQTXDOLW\SULQFLSOHVDQGSUDFWLFHVDQGLQ
WKHDSSOLFDWLRQRIDSSURSULDWHPHWKRGVIRUTXDOLW\
LPSURYHPHQW7KLVLQFOXGHVWKHXVHRITXDOLW\
LPSURYHPHQWWRROVDQGWHFKQLTXHV$OOWUDLQLQJ
SURJUDPPHVVKRXOGEHUHYLHZHGIRUFRQVLVWHQF\
ZLWKTXDOLW\SULQFLSOHVDQGSUDFWLFHV

7KHWUDLQLQJRIPHPEHUVRIDQRUJDQL]DWLRQVKRXOG
EHH[WHQGHGWRDOO6XEMHFWVIRUWUDLQLQJFDQLQFOXGH
WKHIROORZLQJ
DPDQDJHPHQW
EWHFKQLFDO
FSURFHVV
GWKHXVHRISUREOHPVROYLQJWRROV
HFRPPXQLFDWLRQ
IVNLOOV
JRUJDQL]DWLRQ
KDZDUHQHVV
$OOSHUVRQVLQDQRUJDQL]DWLRQVKRXOGUHFHLYH
WUDLQLQJWRHQDEOHWKHPWRSHUIRUPWKHLULQGLYLGXDO
SURFHVVWREHDZDUHRILWVUHODWLRQVKLSWRRWKHU
SURFHVVHVWKHSDUWLWSOD\VLQHQVXULQJFXVWRPHU
VDWLVIDFWLRQDQGWKHREMHFWLYHVRIWKHRUJDQL]DWLRQ
DQGWREHDEOHWRFRQWULEXWHHIIHFWLYHO\WRWKH
FRQWLQXRXVLPSURYHPHQWSURJUDPPH7UDLQLQJ
QHHGVVKRXOGEHUHYLHZHG
127( 6HHDQQH[$IRUDQH[DPSOHRIDW\SLFDOSURFHVVRIWRWDO
TXDOLW\PDQDJHPHQW

5ROHRIVXSSRUWLQJWHFKQLTXHV
4XDOLW\V\VWHPV
,WLVHVVHQWLDOWKDWDPDQDJHPHQWV\VWHPLV
HVWDEOLVKHGWRHQVXUHWKDWFXVWRPHUQHHGVDUH
DFFXUDWHO\WUDQVODWHGE\PHDQVRISURFHVVPHWKRGV
DQGTXDOLW\V\VWHPVDFWLYLWLHVLQWRDQRXWSXWWKDW
JLYHVFXVWRPHUVDWLVIDFWLRQ
127( 0DQ\RUJDQL]DWLRQVEHQHILWIURPDGGUHVVLQJWKHV\VWHP
HOHPHQWVFRQWDLQHGLQ%6 DQGLQDGGLWLRQIXUWKHU
EHQHILWVPD\EHREWDLQHGE\DFKLHYLQJFRPSOLDQFHZLWK
%6 %6 RU %6 

4XDOLW\LPSURYHPHQW
4XDOLW\LPSURYHPHQWDFWLRQGHSHQGVRQWKH
LGHQWLILFDWLRQRIRQHRUPRUHVLWXDWLRQVUHTXLULQJ
LPSURYHPHQW6XFKVLWXDWLRQVPD\DULVHIRU
H[DPSOHIURPTXDOLW\FRVWVWXGLHVVLJQLILFDQW
SUREOHPVDULVLQJIURPFXVWRPHUFRPSODLQW
PDQXIDFWXUHRUVHUYLFHSURFHVVHVRUKHDOWKDQG
VDIHW\FRQVLGHUDWLRQV,QWKHVHH[DPSOHVLWLV
XVXDOO\PDQDJHPHQWZKRPDNHWKHLGHQWLILFDWLRQ
DQGLQLWLDWHDFWLRQ

/RVWWLPHPD\EHGXHWRDFFLGHQWVRURFFXSDWLRQDOLOOKHDOWKSRVVLEO\FDXVHGE\ODFNRIULVNFRQWUROPHDVXUHV

%6,

%6

,QGLYLGXDOVDQGJURXSVVKRXOGDOVREHHQFRXUDJHGWR
XVHSUREOHPVROYLQJWHFKQLTXHVWRLGHQWLI\
RSSRUWXQLWLHVDQGDFWLRQVIRULPSURYHPHQWLQWKHLU
RZQZRUNDUHDVRQDYROXQWDU\EDVLV,WLVLPSRUWDQW
WRUHFRJQL]HWKDWWKHWHFKQLTXHVFDQEHDSSOLHG
HTXDOO\WRDOODUHDVRIWKHEXVLQHVVLQFOXGLQJW\SLQJ
ILQDQFHSXUFKDVLQJVWRUHVVHUYLFLQJHWF2IWHQ
WKHVHLPSURYHPHQWVZLOOEHVPDOORQHVIRUZKLFK
PDQDJHPHQWZRXOGQRWQRUPDOO\IXQGWKH
UHVRXUFHV,QWLPHWKRXJKWKHLUFXPXODWLYHHIIHFWRQ
WKHRYHUDOOEXVLQHVVFDQEHFRPHYHU\VLJQLILFDQW
7RPDNHWKHEHVWXVHRIUHVRXUFHVWKHSULRULW\RIDQ
LPSURYHPHQWSURMHFWVKRXOGEHUHYLHZHGEHIRUHLWLV
FOHDUHGIRUDFWLRQ$ORJLFDODQGV\VWHPDWLFSURFHVV
IRUDFKLHYLQJLPSURYHPHQWVLVGHVLUDEOHIRUDOO
SURFHVVHVDQGOHYHOVRIDQRUJDQL]DWLRQIURP
FRUSRUDWHWRLQGLYLGXDOIRUH[DPSOHVHHDQQH[%

$QDO\VLVDQGGLDJQRVLVWRROV
0DQ\WRROVXVHGLQWKHLGHQWLILFDWLRQUDWLQJDQG
VROYLQJRISUREOHPVWKHLPSURYHPHQWRISURFHVVHV
DQGWKHHIIHFWLYHXVHRIUHVRXUFHVKDYHEHHQ
GHYHORSHGDQGDUHLQXVHVHH 7DEOH
7KHVHFDQEHXVHGDWYDULRXVVWDJHVRIDSUREOHP
VROYLQJSURFHVVDQGDUHXVHIXOIRUWKHIROORZLQJ
DLGHQWLI\LQJVXEMHFWVIRULPSURYHPHQW
ESODFLQJVXEMHFWVLQRUGHURISULRULW\
FLGHQWLI\LQJDQGDQDO\VLQJFDXVHVRISUREOHPV
GFROOHFWLQJGDWDIRUDQDO\VLV
HDVVHVVLQJDOWHUQDWLYHVROXWLRQVWRSUREOHPV
IVHOHFWLQJWKHRSWLPXPVROXWLRQIRUDFWLRQ
7DEOHJLYHVDQRYHUYLHZRIVRPHRIWKHPRUH
FRPPRQO\XVHGWHFKQLTXHV

%6,

%6

$QQH[$LQIRUPDWLYH
([DPSOHRIDW\SLFDOSURFHVVRIWRWDO
TXDOLW\PDQDJHPHQW

E0HDVXUHPHQWRISHUIRUPDQFH(VWDEOLVK
PHDVXUHVRISHUIRUPDQFHRILQGLYLGXDOVRUWHDPV
LQYROYHGLQHDFKSURFHVVUHODWHGZKHUHSRVVLEOH
WRLQWHUQDORUH[WHUQDOFXVWRPHUVDWLVIDFWLRQ

$3ROLF\DQGVWUDWHJ\RIWKHRUJDQL]DWLRQ

127( 7KHHVWDEOLVKPHQWRILPSURYHPHQWUHTXLUHV
PHDVXUHPHQW

7KHPLVVLRQRIWKHRUJDQL]DWLRQLWVOHDGHUVKLSDQG
VWUDWHJLHVVKRXOGEHGHYHORSHGE\PDQDJHPHQWDV
IROORZV
D0LVVLRQ(VWDEOLVKDPLVVLRQVWDWHPHQW
FRUSRUDWHREMHFWLYHVVWUDWHJ\IRUDFKLHYLQJ
REMHFWLYHVDQGDEXVLQHVVSODQ
E/HDGHUVKLSDQGFRPPLWPHQW+DYHYLVLEOH
VXVWDLQHGFRPPLWPHQWVWDUWLQJIURPFKLHI
H[HFXWLYHDQGH[WHQGLQJWRHYHU\PHPEHURIWKH
EXVLQHVVWKURXJKSHUVRQDOOHDGHUVKLSDQG
H[DPSOH
F'LYLVLRQDOREMHFWLYHV(VWDEOLVKDQGPDLQWDLQ
WKHUROHVUHVSRQVLELOLWLHVDQGREMHFWLYHVIRUHDFK
OHYHORIWKHRUJDQL]DWLRQWRVXSSRUWWKHPLVVLRQ
DQGFRUSRUDWHREMHFWLYHV
$0DQDJHPHQWRIWKHRUJDQL]DWLRQ
0DQDJHPHQWSODQQLQJVKRXOGLQFOXGHWKHIROORZLQJ
D2UJDQL]DWLRQVWUXFWXUH(VWDEOLVKDQHIIHFWLYH
RUJDQL]DWLRQDOVWUXFWXUH
E0DQDJHPHQWV\VWHP(VWDEOLVKDXGLWDQGNHHS
XQGHUUHYLHZDQHIIHFWLYHPDQDJHPHQWV\VWHP
F,QIRUPDWLRQV\VWHP(VWDEOLVKDQHIIHFWLYH
SODQQHGLQIRUPDWLRQV\VWHPWKURXJKRXWWKH
RUJDQL]DWLRQ
G&RPPXQLFDWLRQV(VWDEOLVKJRRG
FRPPXQLFDWLRQVLQWHUQDOO\DQGH[WHUQDOO\ZLWK
VXSSOLHUVDQGFXVWRPHUV
&RPPXQLFDWLRQVKRXOGEHSODQQHGERWK
YHUWLFDOO\EHWZHHQPDQDJHUDQGVWDIIWKURXJK
DOOOHYHOVDQGKRUL]RQWDOO\EHWZHHQWKHSURFHVVHV
DQGEHWZHHQWKHSURFHVVRZQHUVDQGWKHLU
VXSSOLHUVDQGFXVWRPHUVZKHWKHULQWHUQDORU
H[WHUQDOWRWKHRUJDQL]DWLRQ
$,PSURYHPHQWRIWKHRUJDQL]DWLRQ
7KHIROORZLQJVKRXOGEHFRQVLGHUHG
D:RUNLQJHQYLURQPHQW,QDGGLWLRQWRWKH
SK\VLFDOHQYLURQPHQWRIWKHZRUNSODFHWKH
UHODWLRQVKLSEHWZHHQWKHLQGLYLGXDODQGWKH
RUJDQL]DWLRQDQGRWKHUHPSOR\HHVVKRXOGEH
VWUXFWXUHGVRWKDWHDFKLQGLYLGXDOWHDP
GHSDUWPHQWRIDSURFHVVRUVXESURFHVVLVDZDUHRI
LWVFRQWULEXWLRQWRWKHPLVVLRQVWDWHPHQWDQGWKH
SODQQHGPHWKRGVE\ZKLFKLWFDQHIIHFW
LPSURYHPHQWV

F,PSURYHPHQWREMHFWLYHV,PSURYHPHQWJRDOV
VKRXOGEHFORVHO\LQWHJUDWHGZLWKWKHFRUSRUDWH
REMHFWLYHVDQGVKRXOGEHGLIIHUHQWLDWHGIURP
LPSOHPHQWDWLRQVRIFDSLWDOLQWHQVLYHSURMHFWV
G,PSURYHPHQWSODQV(VWDEOLVKSODQVIRU
LPSURYHPHQWRISURGXFWVHUYLFHRUSURFHVV
TXDOLW\VDIHW\HQYLURQPHQWDOLPSDFW
GHSHQGDELOLW\DQGFXVWRPHUVDWLVIDFWLRQDWDOO
OHYHOV
H0RQLWRUDQGUHYLHZ(QVXUHWKDWDOOWKHSODQV
WDUJHWVDQGPHDVXUHVWKURXJKRXWWKH
RUJDQL]DWLRQFRPSOHPHQWHDFKRWKHUDQGUHIOHFW
WKHRYHUDOOREMHFWLYHVRIWKHLQGLYLGXDOSURFHVV
WDUJHWVDQGRYHUDOOREMHFWLYHVRIWKHPLVVLRQ
VWDWHPHQWUHYLHZWKHUHVXOWVRILPSURYHPHQW
SODQVWRREWDLQDPHDVXUHRIWKHLUHIIHFWLYHQHVV

$QQH[%LQIRUPDWLYH
([DPSOHRIDV\VWHPDWLF
LPSURYHPHQWVSURFHVV
%,GHQWLI\
,GHQWLI\DQ\VLWXDWLRQZKHUHWKHUHLVDQRSSRUWXQLW\
IRULPSURYHPHQW
%(YDOXDWH
'HILQHWKHRSSRUWXQLW\IRULPSURYHPHQW
'HILQHWKHSURFHVVLQYROYHG
*DWKHUDQGDQDO\VHWKHIDFWV
'HILQHREMHFWLYHVIRULPSURYHPHQW
%3ODQ
,GHQWLI\WKHFDXVHVRIWKHVLWXDWLRQUHTXLULQJ
LPSURYHPHQW
'HYLVHSRVVLEOHVROXWLRQV
6HOHFWSUHIHUUHGVROXWLRQ
3ODQWKHLPSOHPHQWDWLRQ
%([HFXWH
,PSOHPHQWWKHSODQ
%&KHFN
0RQLWRUUHYLHZDQGDSSUDLVHUHVXOWV
%$PHQG
5HSHDWWKHSURFHVVLISODQQHGVROXWLRQLVQRW
DFKLHYLQJLWVREMHFWLYHV

)RUJXLGDQFHRQTXDOLW\V\VWHPVUHIHUHQFHVKRXOGEHPDGHWR%6 

%6,

EODQN

%6

/LVWRIUHIHUHQFHVVHHFODXVH 
1RUPDWLYHUHIHUHQFHV
%6,VWDQGDUGVSXEOLFDWLRQV
%5,7,6+67$1'$5'6,167,787,21/RQGRQ

%6 4XDOLW\YRFDEXODU\
%6 ,QWHUQDWLRQDOWHUPV
%6 4XDOLW\FRQFHSWVDQGUHODWHGGHILQLWLRQV
%6 $YDLODELOLW\UHOLDELOLW\DQGPDLQWDLQDELOLW\WHUPV
%6 *XLGHWRFRQFHSWVDQGUHODWHGGHILQLWLRQV
%6 *ORVVDU\RILQWHUQDWLRQDOWHUPV
%6 *XLGHWRWKHHFRQRPLFVRITXDOLW\
%6 3URFHVVFRVWPRGHO
%6 3UHYHQWLRQDSSUDLVDODQGIDLOXUHPRGHO
%6 7RWDOTXDOLW\PDQDJHPHQW
%6 *XLGHWRTXDOLW\LPSURYHPHQWPHWKRGV

,QIRUPDWLYHUHIHUHQFHV
%6,6WDQGDUGVSXEOLFDWLRQV
%5,7,6+67$1'$5'6,167,787,21/RQGRQ

%6 4XDOLW\V\VWHPV
%6 3ULQFLSDOFRQFHSWVDQGDSSOLFDWLRQV
%6 *XLGHWRTXDOLW\PDQDJHPHQWDQGTXDOLW\V\VWHPHOHPHQWV
%6 6SHFLILFDWLRQIRUGHVLJQGHYHORSPHQWSURGXFWLRQLQVWDOODWLRQDQGVHUYLFLQJ
%6 6SHFLILFDWLRQIRUSURGXFWLRQDQGLQVWDOODWLRQ
%6 6SHFLILFDWLRQIRUILQDOLQVSHFWLRQDQGWHVW

%6,

%6


%6, %ULWLVK 6WDQGDUGV ,QVWLWXWLRQ

%6,LVWKHLQGHSHQGHQWQDWLRQDOERG\UHVSRQVLEOHIRUSUHSDULQJ
%ULWLVK 6WDQGDUGV,WSUHVHQWVWKH8.YLHZRQVWDQGDUGVLQ(XURSHDQGDWWKH
LQWHUQDWLRQDOOHYHO,WLVLQFRUSRUDWHGE\5R\DO&KDUWHU
5HYLVLRQV
%ULWLVK 6WDQGDUGVDUHXSGDWHGE\DPHQGPHQWRUUHYLVLRQ8VHUVRI
%ULWLVK 6WDQGDUGVVKRXOGPDNHVXUHWKDWWKH\SRVVHVVWKHODWHVWDPHQGPHQWVRU
HGLWLRQV
,WLVWKHFRQVWDQWDLPRI%6,WRLPSURYHWKHTXDOLW\RIRXUSURGXFWVDQGVHUYLFHV
:HZRXOGEHJUDWHIXOLIDQ\RQHILQGLQJDQLQDFFXUDF\RUDPELJXLW\ZKLOHXVLQJ
WKLV%ULWLVK 6WDQGDUGZRXOGLQIRUPWKH6HFUHWDU\RIWKHWHFKQLFDOFRPPLWWHH
UHVSRQVLEOHWKHLGHQWLW\RIZKLFKFDQEHIRXQGRQWKHLQVLGHIURQWFRYHU
7HO   )D[   
%6,RIIHUVPHPEHUVDQLQGLYLGXDOXSGDWLQJVHUYLFHFDOOHG3/86ZKLFKHQVXUHV
WKDWVXEVFULEHUVDXWRPDWLFDOO\UHFHLYHWKHODWHVWHGLWLRQVRIVWDQGDUGV
%X\LQJVWDQGDUGV
2UGHUVIRUDOO%6,LQWHUQDWLRQDODQGIRUHLJQVWDQGDUGVSXEOLFDWLRQVVKRXOGEH
DGGUHVVHGWR&XVWRPHU6HUYLFHV7HO   )D[   
,QUHVSRQVHWRRUGHUVIRULQWHUQDWLRQDOVWDQGDUGVLWLV%6,SROLF\WRVXSSO\WKH
%6,LPSOHPHQWDWLRQRIWKRVHWKDWKDYHEHHQSXEOLVKHGDV%ULWLVK 6WDQGDUGV
XQOHVVRWKHUZLVHUHTXHVWHG
,QIRUPDWLRQRQVWDQGDUGV
%6,SURYLGHVDZLGHUDQJHRILQIRUPDWLRQRQQDWLRQDO(XURSHDQDQG
LQWHUQDWLRQDOVWDQGDUGVWKURXJKLWV/LEUDU\DQGLWV7HFKQLFDO+HOSWR([SRUWHUV
6HUYLFH9DULRXV%6,HOHFWURQLFLQIRUPDWLRQVHUYLFHVDUHDOVRDYDLODEOHZKLFKJLYH
GHWDLOVRQDOOLWVSURGXFWVDQGVHUYLFHV&RQWDFWWKH,QIRUPDWLRQ&HQWUH
7HO   )D[   
6XEVFULELQJPHPEHUVRI%6,DUHNHSWXSWRGDWHZLWKVWDQGDUGVGHYHORSPHQWV
DQGUHFHLYHVXEVWDQWLDOGLVFRXQWVRQWKHSXUFKDVHSULFHRIVWDQGDUGV)RUGHWDLOV
RIWKHVHDQGRWKHUEHQHILWVFRQWDFW0HPEHUVKLS$GPLQLVWUDWLRQ
7HO   )D[   
&RS\ULJKW
&RS\ULJKWVXEVLVWVLQDOO%6,SXEOLFDWLRQV%6,DOVRKROGVWKHFRS\ULJKWLQWKH
8.RIWKHSXEOLFDWLRQVRIWKHLQWHUQDWLRQDOVWDQGDUGL]DWLRQERGLHV([FHSWDV
SHUPLWWHGXQGHUWKH&RS\ULJKW'HVLJQVDQG3DWHQWV$FWQRH[WUDFWPD\EH
UHSURGXFHGVWRUHGLQDUHWULHYDOV\VWHPRUWUDQVPLWWHGLQDQ\IRUPRUE\DQ\
PHDQVHOHFWURQLFSKRWRFRS\LQJUHFRUGLQJRURWKHUZLVHZLWKRXWSULRUZULWWHQ
SHUPLVVLRQIURP%6,
7KLVGRHVQRWSUHFOXGHWKHIUHHXVHLQWKHFRXUVHRILPSOHPHQWLQJWKHVWDQGDUG
RIQHFHVVDU\GHWDLOVVXFKDVV\PEROVDQGVL]HW\SHRUJUDGHGHVLJQDWLRQV,IWKHVH
GHWDLOVDUHWREHXVHGIRUDQ\RWKHUSXUSRVHWKDQLPSOHPHQWDWLRQWKHQWKHSULRU
ZULWWHQSHUPLVVLRQRI%6,PXVWEHREWDLQHG
,ISHUPLVVLRQLVJUDQWHGWKHWHUPVPD\LQFOXGHUR\DOW\SD\PHQWVRUDOLFHQVLQJ
DJUHHPHQW'HWDLOVDQGDGYLFHFDQEHREWDLQHGIURPWKH&RS\ULJKW0DQDJHU
7HO   

%6,
&KLVZLFN+LJK5RDG
/RQGRQ
:$/