A N N A L E S
8 1 , 9 ( 5 6 , 7$7 , 6 0 $ 5 , $ ( & 8 5 , ( 6 . à 2 ' 2 : 6 . $ /8%/,1±32/21,$ 92/;/9,,, 6(&7,2+ 8QLZHUV\WHW0DULL&XULH6NáRGRZVNLHMZ/XEOLQLH.DWHGUD*RVSRGDUNLĝZLDWRZHML,QWHJUDFML(XURSHMVNLHM 720$6=%,$à2:Ą6021,.$:2-7$67KHUROHRIIRUHLJQYDOXHDGGHGLQFUHDWLQJ3RODQG¶VFRPSDUDWLYH
…
DGYDQWDJHLQZRUOGPHUFKDQGLVHH[SRUWV
5ROD]DJUDQLF]QHMZDUWRĞFLGRGDQHMZWZRU]HQLXSU]HZDJLNRPSDUDW\ZQHM3ROVNL ZĞZLDWRZ\PHNVSRUFLHWRZDURZ\P .H\ZRUGV 3RODQGH[SRUWVFRPSDUDWLYHDGYDQWDJHIRUHLJQDQGGRPHVWLFYDOXHDGGHG 6áRZDNOXF]RZH 3ROVNDHNVSRUWSU]HZDJDNRPSDUDW\ZQD]DJUDQLF]QDLNUDMRZDZDUWRĞü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±IUDJPHQWDWLRQZLOOEHLQWHUQDWLRQDO$FFRUGLQJWRWKHVWDQGDUG DSSURDFKODERXULQWHQVLYHVWDJHVRISURGXFWLRQZLOOEHORFDWHGLQODERXUDEXQGDQW FRXQWULHVDQGFDSLWDOLQWHQVLYHDFWLYLW\±LQFDSLWDODEXQGDQWFRXQWULHV7KHVHFRQG WUHQGZDVLQLWLDWHGZLWKDSDSHUE\'+XPPHOV-,VKLLDQG.0<L>@7KH\
UMCS
LQWURGXFHDFRQFHSWRIYHUWLFDOVSHFLDOL]DWLRQZLWKSURGXFWLRQWDVNVORFDOL]HGLQYDULRXV FRXQWULHV7KLVOHDGVWRWKHFUHDWLRQRIJOREDOYDOXHDGGHGFKDLQ$FRXQWU\DFFHSWV SDUWVDQGLQWHUPHGLDWHJRRGVWKDWDUHSURFHVVHGDQGWKHQSDVVHGRQLQDPRUHDGYDQFHG IRUPWRWKHQH[WOLQNRIWKHFKDLQIRUIXUWKHUSURFHVVLQJ%RWKDSSURDFKHVFRPSOHPHQW HDFKRWKHUEXWWKHODWWHUHPSKDVL]HVWKHSUREOHPRIYDOXHDGGHGLQYDULRXVFRXQWULHV 'HYHORSPHQWRIRIIVKRULQJVLJQLILFDQWO\DOWHUVFRXQWULHV¶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±ORZHUWKDQFDOFXODWHGXVLQJWUDGLWLRQDOPHDVXUHV 7KHPDLQJRDORIWKHSDSHULVWRHYDOXDWHWKHLPSDFWRILQWHUQDWLRQDOIUDJPHQWD-WLRQRQ3RODQG¶VFRPSDUDWLYHDGYDQWDJH7KHDQDO\VLVZLOOIRFXVRQ OHYHORILQWHUQDWLRQDOL]DWLRQRISURGXFWLRQDQGVKDUHRIIRUHLJQYDOXHDGGHGLQ 3RODQG¶VJURVVH[SRUWV 3RODQG¶VFRPSDUDWLYHDGYDQWDJHLQLQWHUQDWLRQDOWUDGHEDVHGRQ5&$LQGH[HV FDOFXODWHG DFFRUGLQJ WR WKH WUDGLWLRQDO JURVV H[SRUWV DV ZHOO DV DOWHUQDWLYH PHWKRGEDVHGRQWKHFRQFHSWRIFRXQWU\¶VYDOXHDGGHG
7KHFDOFXODWLRQVZHUHFDUULHGRXWXVLQJGDWDIURP2(&'±:727UDGHLQ9DOXH $GGHG 7,9$ GDWDEDVHDQGWKHWLPHIUDPHRIWKHDQDO\VLVGHWHUPLQHGE\WKHDYDLO-DELOLW\RIGDWDZDVOLPLWHGWR ±
5HVHDUFKPHWKRG
2QH RI WKH IXQGDPHQWDO PHWKRGV WR HYDOXDWH WKH LQWHUQDWLRQDOL]DWLRQ OHYHO RI FRXQWU\¶V SURGXFWLRQ DQG LWV HQJDJHPHQW LQ LQWHUQDWLRQDO SURGXFWLRQ QHWZRUNV LV PHDVXULQJWKHVKDUHRIIRUHLJQYDOXHDGGHGLQJURVVH[SRUWV%DVLFDVVXPSWLRQLQ YDOXHDGGHGWRJURVVH[SRUWVDQDO\VLVLVDSRVVLELOLW\WRDVVHVVQDWLRQDOVKDUHRIILQDO SURGXFW¶VYDOXH:HVLPSOLI\E\VNLSSLQJWD[HVDQGVXEVLGLHV7KHQILQDOSURGXFW YDOXH 93 LVDVXPPDWLRQRIDOOYDOXHDGGHG 9$ LQWKHSURFHVVRISURGXFWLRQLQ VXEVHTXHQWFRXQWULHV7KHIRUPXODLV P P i i V ¦VA 1HWYDOXHDGGHGRIFRXQWU\$ 19$ ZKLFKFRQVWLWXWHVLWVWUDGHEDODQFHLVDGLI-IHUHQFHEHWZHHQJURVVH[SRUWVDQGLPSRUWVDVSUHVHQWHGLQIRUPXOD *URVVH[SRUWV LVDVXPPDWLRQRIGLUHFWDQGLQGLUHFWGRPHVWLFYDOXHDGGHG '9$ WKDWFRXQWU\$LV
UMCS
33
7+(52/(2))25(,*19$/8($''(',1&5($7,1*32/$1'¶6&203$5$7,9(«
H[SRUWLQJ DQG IRUHLJQ YDOXH DGGHG )9$ ZKLFK FRQVLVWV RI SUHYLRXVO\ LPSRUWHG IRUHLJQ SDUWV DQG FRPSRQHQWV XVHG LQ WKH SURGXFWLRQ SURFHVV ,PSRUWV FRQVLVWV RI HOHPHQWV ELODWHUDO YDOXH DGGHG %9$ UHLPSRUWHG YDOXH DGGHG 59$ DQG PXOWLODWHUDO YDOXH DGGHG 09$ %9$ LV LPSRUWV WR FRXQWU\ $ RI SURGXFWV ZKLFK YDOXHZDVDGGHGLQLQFRXQWU\%59$PHDQVWKRVHLPSRUWHGSURGXFWVZKLFK ILQDOYDOXHZDVDGGHGLQFRXQWU\%DVZHOODVFRPSRQHQWVFRPLQJIURP$09$LV WKDWSDUWRILPSRUWVIURP%WKDWKDVYDOXHDGGHGIURPFRXQWU\&
19$ '9$)9$ ± %9$59$09$
6WDQGDUG PHDVXUH XVHG WR DVVHVV FRPSDUDWLYH DGYDQWDJH LQ ZRUOG H[SRUWV LV %DODVVD LQGH[ >%DODVVD @ 7KH %DODVVD LQGH[ LV GHILQHG DV WKH UDWLR RI FRXQ-WU\¶VVKDUHLQZRUOGH[SRUWVRIDJLYHQLQGXVWU\GLYLGHGE\LWVVKDUHLQRYHUDOOZRUOG WUDGH0RUHVSHFLILFDOO\%,A M LVFRXQWU\A¶V%DODVVDLQGH[IRULQGXVWU\M defined as in IRUPXOD 7KDWLVDUDWLRRIVKDUHRILQGXVWU\MLQFRXQWU\$H[SRUWV sA M DQGVKDUH RILQGXVWU\MLQUHIHUHQFHFRXQWU\5H[SRUWV sR M ,I%, A M !FRXQWU\A LVVDLGWRKDYH DUHYHDOHG FRPSDUDWLYHDGYDQWDJH 5&$ LQLQGXVWU\MVLQFHWKLVLQGXVWU\LVPRUH LPSRUWDQWIRUFRXQWU\A¶VH[SRUWVWKDQIRUWKHH[SRUWVRIWKHUHIHUHQFHFRXQWULHV A j A j R j s BI s 3RODQG¶VFRPSDUDWLYHDGYDQWDJHLQLQWHUQDWLRQDOWUDGHEDVHGRQ5&$LQGH[HVFDQ EHFDOFXODWHGLQDWUDGLWLRQDOZD\XVLQJYDOXHRIJURVVH[SRUWVRULQDQDOWHUQDWLYH ZD\±XVLQJGRPHVWLFYDOXHDGGHG,QWKHILUVWDSSURDFK5&$YDOXHLVGHWHUPLQHG E\ FRXQWU\¶V LQWHJUDWLRQ ZLWK LQWHUQDWLRQDO SURGXFWLRQ QHWZRUNV DQG IRUHLJQ YDOXH DGGHG7KHVHFRQGRQHDOORZVWRYLHZLQDPRUHREMHFWLYHZD\WKHUHDOFRPSDUDWLYH DGYDQWDJHLQZRUOGH[SRUWV 6KDUHRIIRUHLJQYDOXHDGGHGLQ3RODQG¶VJURVVH[SRUWV &RXQWU\¶VH[SRUWSRWHQWLDOLVGHSHQGHQWQRWRQO\RQGRPHVWLFHQWHUSULVHVH[SRUW FDSDELOLW\EXWDOVRRQWKHDFWLYLWLHVRILQWHUQDWLRQDOFRUSRUDWLRQVDQGQDWLRQ¶VHQJDJH-PHQWLQLQWHUQDWLRQDOSURGXFWLRQQHWZRUNV3RODQGLQFRPSDULVRQWRRWKHUHFRQRPLHV RIVLPLODUSRWHQWLDOLVDPRQJPRVWGHSHQGHQWRQIRUHLJQFRPSRQHQWVDQGLQWHUPHGLDWH JRRGV)XUWKHUPRUHDVLJQLILFDQWLQFUHDVHLQVKDUHRIIRUHLJQYDOXHDGGHGLQJURVV H[SRUWVZDVQRWHGLQ ±±LWJUHZIURPWR 'XHWRJOREDO ILQDQFLDODQGHFRQRPLFFULVLVDOOWKHFRXQWULHVZLWKWKHDYDLODEOHGDWDH[SHULHQFHG DGHFUHDVHLQ ,Q3RODQGLWIHOOWR VHH7DEOH 6KDUHRIIRUHLJQLQSXW LQWRWKHJURVVH[SRUWVLVKLJKO\GLYHUVLILHGDPRQJVHFWRUVRIWKHHFRQRP\,Q
UMCS
WKHIROORZLQJVHFWRUVZHUHFKDUDFWHUL]HGE\WKHKLJKHVWVKDUHRIIRUHLJQYDOXHDGGHG WUDQVSRUWHTXLSPHQW HOHFWULFDODQGRSWLFDOHTXLSPHQW EDVLFPHWDOV DQGIDEULFDWHGPHWDOSURGXFWV FKHPLFDOVDQGQRQPHWDOOLFPLQHUDOSURGXFWV 7KHVHFWRUVZLWKWKHORZHVWVKDUHRILPSRUWHGSDUWVDQGFRPSRQHQWVZHUH ORZWHFKQRORJ\LQGXVWULHVGHSHQGHQWRQODERUDQGUDZPDWHULDOVVXFKDV PLQLQJDQG TXDUU\LQJ DJULFXOWXUHKXQWLQJIRUHVWU\DQGILVKLQJ VHH7DEOH 7DEOH6KDUHRIIRUHLJQYDOXHDGGHGLQJURVVH[SRUWVLQ ± E\LQGXVWU\ LQ Total $JULFXOWXUHKXQWLQJIRUHVWU\DQGILVKLQJ 0LQLQJDQGTXDUU\LQJ )RRGSURGXFWVEHYHUDJHVDQGWREDFFR 7H[WLOHVWH[WLOHSURGXFWVOHDWKHUDQGIRRWZHDU :RRGDQGSDSHU &KHPLFDOVDQGQRQPHWDOOLFPLQHUDOSURGXFWV %DVLFPHWDOVDQGIDEULFDWHGPHWDOSURGXFWV 0DFKLQHU\DQGHTXLSPHQW (OHFWULFDODQGRSWLFDOHTXLSPHQW 7UDQVSRUWHTXLSPHQW 2WKHUPDQXIDFWXULQJ 6RXUFH RZQFRPSLODWLRQEDVHGRQ 2(&'>@ )XUWKHUDQDO\VLVRIIRUHLJQYDOXHDGGHGVKDUHLQ3RODQG¶VJURVVH[SRUWVLQYDULRXV LQGXVWULHVUHYHDOHGWKHIROORZLQJWUHQGV6KDUHRIIRUHLJQFRPSRQHQWVDQGSDUWVNHSW JURZLQJXQWLOLQDOOVHFWRUVH[FHSW DJULFXOWXUHKXQWLQJIRUHVWU\DQGILVKLQJ DQG PLQLQJ DQG TXDUU\LQJ 7KH KLJKHVW JURZWK RFFXUUHG LQ LQGXVWULHV ZLWK WKH PRVWIUDJPHQWHGSURGXFWLRQSURFHVVHV,Q ±VKDUHRIIRUHLJQYDOXHDGGHGLQ HOHFWULFDODQGRSWLFDOHTXLSPHQWLQFUHDVHGE\SHUFHQWDJHSRLQWVDQGLQWUDQVSRUW HTXLSPHQW±E\SHUFHQWDJHSRLQWV VHH7DEOH ,Q±VKDUHRILPSRUWHG SDUWVLQH[SRUWVRIWKHWZRDIRUHPHQWLRQHGLQGXVWULHVGURSSHG6LPLODUWHQGHQFLHV FKDUDFWHUL]HGZRRGDQGSDSHURWKHUPDQXIDFWXULQJWH[WLOHVDQGIRRWZHDUDVZHOODV IRRGEHYHUDJHVDQGWREDFFR7KHUHPDLQLQJLQGXVWULHVQRWHGDVWHDG\JURZWKXQWLO 0DLQVRXUFHVRIIRUHLJQFRPSRQHQWVXVHGWRPDQXIDFWXUHH[SRUWHGJRRGVZHUH FRXQWULHV RI WKH (XURSHDQ 8QLRQ PRVWO\ *HUPDQ\ ,Q ± WKH\ DFFRXQWHG IRURIWKHWRWDOIRUHLJQYDOXHDGGHGLQ3ROLVKH[SRUWV$SDUWIURP*HUPDQ\RWKHU FRXQWULHV ZLWK VLJQLILFDQW VKDUHV ZHUH ,WDO\ )UDQFH WKH 8QLWHG .LQJGRP DQG WKH
35 7+(52/(2))25(,*19$/8($''(',1&5($7,1*32/$1'¶6&203$5$7,9(« 1HWKHUODQGV2XWVLGHWKH(8PRVWFRPSRQHQWVFDPHIURP5XVVLDWKH8QLWHG6WDWHV &KLQD-DSDQDQG6RXWK.RUHD VHH7DEOH 7DEOH2ULJLQRIIRUHLJQYDOXHDGGHGLQ3ROLVKJURVVH[SRUWVLQ ± LQ Total 'RPHVWLFYDOXHDGGHG )RUHLJQYDOXHDGGHG *HUPDQ\ 5XVVLD ,WDO\ United States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¶VVKDUHZDV ,QHOHFWULFDODQGRSWLFDOHTXLSPHQWVKDUHRI *HUPDQ\WKH8QLWHG6WDWHVDQG&KLQDZDVDQGLQEDVLFPHWDOVDQGIDEULFDWHG PHWDOSURGXFWV*HUPDQ\5XVVLDDQG,WDO\FRQWULEXWHGRIIRUHLJQYDOXHDGGHG
UMCS
7DEOH6KDUHRIIRUHLJQYDOXHDGGHGLQJURVVH[SRUWVE\LQGXVWU\DQGE\VRXUFHFRXQWU\LQ LQ To ta l $J UL FX OW XU H K XQ WL QJ I RU HV WU \ DQ G IL VK LQ J 0 LQ LQ JD QG T XD UU \L QJ )R RG S UR GX FW V E HY HU DJ HV D QG to ba cco 7H [W LO HV W H[ WL OH SU RG XF WV OH DW KH U DQ G IR RW Z HDU : RR GD QG S DS HU & KH P LF DO V DQ G QR Q P HW DO OLF P LQ -HUD O SU RG XF WV % DVLF P HW DO V DQ G ID EU LF DW HG PHW DO SUR GXF WV 0 DFK LQ HU \ DQ G HT XL SP HQ W ( OH FW UL FD O DQG R SW LF DO H TX LSPH QW 7 UD QV SR UW HT XL SP HQ W 2 WK HU P DQX ID FW XU LQ J Total *HUPDQ\ 5XVVLD ,WDO\ United States )UDQFH &KLQD 8QLWHG.LQJGRP -DSDQ 1HWKHUODQGV &]HFK5HSXEOLF 6RXWK.RUHD 6SDLQ %HOJLXP $XVWULD 6ZHGHQ 5HVWRIWKHZRUOG 6RXUFH RZQFRPSLODWLRQEDVHGRQ 2(&'>@ 2QHRIWKHLQGXVWULHVKLJKO\HQJDJHGLQLQWHUQDWLRQDOSURGXFWLRQQHWZRUNVZDV WUDQVSRUWHTXLSPHQW+RZHYHURQO\RIIRUHLJQYDOXHDGGHGLQJURVVH[SRUWV LQ RULJLQDWHGLQWKHLQGXVWU\2WKHUFRPSRQHQWVDQGLQWHUPHGLDWHJRRGVZHUH PDQXIDFWXUHG LQ EDVLF PHWDOV FKHPLFDOV PLQLQJ DQG TXDUU\LQJ HOHFWULFDODQGRSWLFDOHTXLSPHQWLQGXVWU\ >2(&'@,QSXWRI
37
7+(52/(2))25(,*19$/8($''(',1&5($7,1*32/$1'¶6&203$5$7,9(«
FDODVVXPSWLRQVPDGHE\+.LHU]NRZVNLDQG5:-RQHV> @,Q VHUYLFHV DFFRXQWHGIRU RIIRUHLJQYDOXHDGGHGLQH[SRUWVRIWUDQVSRUWHTXLSPHQWLQ SDUWLFXODU ZKROHVDOH DQG UHWDLO WUDGH ± EXVLQHVV VHUYLFHV ± WUDQV-SRUWVWRUDJHDQGWHOHFRPPXQLFDWLRQ± ,QRWKHULQGXVWULHVVKDUHRIVHUYLFHV LQIRUHLJQYDOXHDGGHGGLGQ¶WVXUSDVVDQGYDOXHDGGHGIURPWKHVDPHLQGXVWU\ DPRXQWHGIRUDODUJHVKDUHRIIRUHLJQYDOXHDGGHGHVSHFLDOO\LQORZWHFKQRORJ\DQG UDZPDWHULDOVLQGXVWULHV>2(&'@ 3RODQG¶VFRPSDUDWLYHDGYDQWDJHLQZRUOGPHUFKDQGLVHWUDGH ,QWHUPVRIWUDGLWLRQDODSSURDFKEDVHGRQJURVVH[SRUWV3RODQGKDGFRPSDUDWLYH DGYDQWDJHLQH[SRUWVRIIRRGSURGXFWVEHYHUDJHVDQGWREDFFRZRRGDQGSDSHUEDVLF PHWDOVDQGIDEULFDWHGPHWDOSURGXFWVRWKHUPDQXIDFWXULQJDQGWUDQVSRUWHTXLSPHQW VHH7DEOH 7KHODUJHVWJDSFKDUDFWHUL]HGWUDGHLQHOHFWULFDODQGRSWLFDOHTXLSPHQW PDFKLQHU\DQGHTXLSPHQWFKHPLFDOVDQGQRQPHWDOOLFPLQHUDOSURGXFWVDOVRDIWHU WKH\HDU±WH[WLOHVDQGIRRWZHDU0DLQWUHQGVLQ ± ZHUHWKHIROORZ-LQJ,QORZDQGPHGLXPORZWHFKQRORJ\LQGXVWULHV3RODQG¶VFRPSDUDWLYHDGYDQWDJH ZHDNHQHG,QFRQWUDVWWKHUHZDVDJDLQLQFRPSDUDWLYHDGYDQWDJHLQLQGXVWULHVXVLQJ DGYDQFHGWHFKQRORJLHV7KHKLJKHVWJURZWKRI5&$LQGLFDWRURFFXUUHGLQWUDQVSRUW HTXLSPHQW %DODVVD,QGH[JUHZE\ HOHFWULFDODQGRSWLFDOHTXLSPHQW DQG PDFKLQHU\DQGHTXLSPHQW 7KHVHLQGXVWULHVKDYHWKHKLJKHVWVKDUHVRIIRUHLJQ YDOXHDGGHGRYHURIJURVVH[SRUWV 7DEOH5HYHDOHGFRPSDUDWLYHDGYDQWDJHLQGH[HV 5&$ RI3RODQGFDOFXODWHGEDVHGRQJURVVH[SRUWV DQGGRPHVWLFYDOXHDGGHGLQ ± )R RG S UR GX FW V E HY HU DJ HV an d to ba cco 7H [W LO HV W H[ WL OH SU RG XF WV OH DW KH U DQ G IR RW Z HD U : RR GD QG S DS HU & KH P LF DO V DQ G QR Q P HW DO -OLF P LQ HU DO SU RG XF WV % DVLF P HW DO V DQ G ID EU L-FD WH G P HW DO SU RG XF WV 0 DFK LQ HU \ DQ G HT XL SP HQ W ( OH FW UL FD O DQG R SW LF DO HT XL SP HQ W 7 UD QV SR UW HT XL SP HQ W 2 WK HU P DQX ID FW XU LQ J *URVVH[SRUWV
UMCS
)R RG S UR GX FW V E HY HU DJ HV an d to ba cco 7H [W LO HV W H[ WL OH SU RG XF WV OH DW KH U DQ G IR RW Z HD U : RR GD QG S DS HU & KH P LF DO V DQ G QR Q P HW DO -OLF P LQ HU DO SU RG XF WV % DVLF P HW DO V DQ G ID EU L-FD WH G P HW DO SU RG XF WV 0 DFK LQ HU \ DQ G HT XL SP HQ W ( OH FW UL FD O DQG R SW LF DO HT XL SP HQ W 7 UD QV SR UW HT XL SP HQ W 2 WK HU P DQX ID FW XU LQ J 'RPHVWLFYDOXHDGGHG 6RXUFH RZQFRPSLODWLRQEDVHGRQ 2(&'>@ 8VLQJWKHDOWHUQDWLYHPHWKRGRIFDOFXODWLQJ%DODVVDLQGH[HVEDVHGRQGRPHVWLF YDOXHDGGHGVLJQLILFDQWO\DOWHUV3RODQG¶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¶V YDOXH WKDW ZDVDGGHGLQWKHDQDO\]HGFRXQWU\WRHYDOXDWHLWVSRVLWLRQLQLQWHUQDWLRQDOWUDGH7KH DQDO\VLVFDUULHGRXWLQWKLVSDSHUVKRZHGWKDWIRUHLJQSDUWVDQGFRPSRQHQWVZHUHDQ
7+(52/(2))25(,*19$/8($''(',1&5($7,1*32/$1'¶6&203$5$7,9(« LPSRUWDQWHOHPHQWRI3ROLVKPDQXIDFWXULQJH[SRUWVDQGWKHLUUROHLQFUHDVHGFRQVLGHU-DEO\LQ ± )RUHLJQYDOXHDGGHGZDVSDUWLFXODUO\LPSRUWDQWLQKLJKWHFKQRORJ\ LQGXVWULHVVXFKDVWUDQVSRUWHTXLSPHQWRUHOHFWULFDODQGRSWLFDOHTXLSPHQWZKLOHLWV UROHLQORZWHFKQRORJ\LQGXVWULHVZDVPLQRU/DUJHSDUWRIIRUHLJQYDOXHDGGHGZDV FRQWULEXWHGE\(XURSHDQ8QLRQFRXQWULHVDQGLQSDUWLFXODU*HUPDQ\7KHGDWDDOVR FRQILUPHGWKHWKHRU\WKDWVHUYLFHVVHFWRULVDVLJQLILFDQWVRXUFHRIIRUHLJQYDOXHDGGHG 7KHUHLVVWLOODFRQVLGHUDEOHJDSLQ3ROLVKH[SRUWVFRPSHWLWLYHQHVVFRPSDUHGWR WKHROG(XURSHDQ8QLRQFRXQWULHV>0XFKD/HV]NR.ąNRO @VRQDWXUDOO\WKHUHLV DYDOLGTXHVWLRQZKHWKHUIRUHLJQYDOXHDGGHGFDQEHXVHGWRFORVHWKLVJDS+RZHYHU WKHUHODWLRQEHWZHHQFRPSDUDWLYHDGYDQWDJHDQGIRUHLJQYDOXHDGGHGZDVQRWSURYHG WREHVWUDLJKWIRUZDUG7KH%DODVVDLQGH[HVFDOFXODWHGXVLQJWZRPHWKRGVZHUHGLI-IHUHQW EXW WKH UROH RI IRUHLJQ LQSXW ZDV QRW DOZD\V SRVLWLYH,Q VRPH LQGXVWULHV LW DOORZHG3RODQGWREHPRUHFRPSHWLWLYH HJWUDQVSRUWHTXLSPHQW ZKLOHLQRWKHUVLW ZHDNHQHGWKHDGYDQWDJHHQODUJHGWKHJDS 5HIHUHQFHV %DODVVD% 7UDGH/LEHUDOL]DWLRQDQG5HYHDOHG&RPSDUDWLYH$GYDQWDJH³0DQFKHVWHU6FKRRO RI(FRQRPLFDQG6RFLDO6WXGLHV´YRO +XPPHOV',VKLL-<L.07KHQDWXUHDQGJURZWKRIYHUWLFDOVSHFLDOL]DWLRQLQZRUOG WUDGH ³-RXUQDORI,QWHUQDWLRQDO(FRQRPLFV´YROQR -RKQVRQ5&1RJXHUD*$FFRXQWLQJIRULQWHUPHGLDWHV 3URGXFWLRQVKDULQJDQGWUDGHLQ YDOXHDGGHG ³-RXUQDORI,QWHUQDWLRQDO(FRQRPLFV´YRO -RQHV5:.LHU]NRZVNL+ 7KH5ROHRI6HUYLFHVLQ3URGXFWLRQDQG,QWHUQDWLRQDO7UDGH $7KHRUHWLFDO)UDPHZRUN >LQ @-RQHV5:.UXHJHU$2 HGV 7KH3ROLWLFDO(FRQRP\RI,QWHU-QDWLRQDO7UDGH (VVD\VLQ+RQRXURI5REHUW$0XQGHOO 0,73UHVV&DPEULGJH /HRQWLHI: 4XDQWLWDWLYH,QSXW2XWSXW5HODWLRQVLQWKH(FRQRPLF6\VWHPRIWKH8QLWHG6WDWHV ³5HYLHZRI(FRQRPLFVDQG6WDWLVWLFV´YROQR
0XFKD/HV]NR % .ąNRO 0 :LOO WKH ILQDQFLDO HFRQRPLF FULVLV RI ± DFFHOHUDWH
PRQHWDU\LQWHJUDWLRQLQWKH(8"³(XUROLPHV´YRO 2(&'2(&'±:727UDGHLQ9DOXH$GGHG 7,9$ KWWS VWDWVRHFGRUJ DFFHVV 6HSHPEHU 7KHUROHRIIRUHLJQYDOXHDGGHGLQFUHDWLQJ3RODQG¶VFRPSDUDWLYHDGYDQWDJH LQZRUOGPHUFKDQGLVHH[SRUWV 7KHSDSHUGHDOVZLWKFKDQJLQJDSSURDFKWRPHDVXULQJWUDGHDQFRPSHWLWLYHQHVVGXHWRWKHZLGHO\ VSUHDGSURFHVVRILQWHUQDWLRQDOIUDJPHQWDWLRQRISURGXFWLRQSURFHVVZKLFKPDNHVLWPXFKPRUHGLIILFXOW WRDVVHVVRULJLQRISURGXFWVLQLQWHUQDWLRQDOWUDGH7KHUHIRUHDPHWKRGZDVGHYHORSHGWRXVHIRUHLJQ DQGGRPHVWLFYDOXHDGGHGLQRUGHUWRHYDOXDWHFRXQWU\¶VUROHLQZRUOGWUDGHDVZHOODVLWVFRPSDUDWLYH DGYDQWDJH$XWKRUVDSSO\WKLVPHWKRGRORJ\WR3ROLVKWUDGHLQJRRGVLQ ± DQGUHYHDOWKDWIRU-HLJQFRPSRQHQWVZHUHDQLPSRUWDQWSDUWRILWVH[SRUWV3RODQGZDVKLJKO\GHSHQGHQWRQIRUHLJQYDOXH DGGHGIURP(XURSHDQ8QLRQFRXQWULHVHVSHFLDOO\*HUPDQ\6HFWRUVZLWKKLJKHVWVKDUHVZHUH WUDQVSRUW HTXLSPHQWHOHFWULFDODQGRSWLFDOHTXLSPHQWEDVLFPHWDOVDQGIDEULFDWHGPHWDOSURGXFWVFKHPLFDOVDQG QRQPHWDOOLFPLQHUDOSURGXFWV)RUHLJQYDOXHDGGHGDOVRDIIHFWHG3RODQG¶VFRPSDUDWLYHDGYDQWDJH±LWV
UMCS
LPSDFWRQYDULRXVLQGXVWULHVZDVDGYHUVH,QVRPHFDVHVLWLPSURYHG5&$LQGH[HVZKLOHLQRWKHUVXVLQJ GRPHVWLFYDOXHDGGHGIRUWKHFDOFXODWLRQVUHVXOWHGLQDODUJHUFRPSDUDWLYHDGYDQWDJH
5ROD]DJUDQLF]QHMZDUWRĞFLGRGDQHMZWZRU]HQLXSU]HZDJLNRPSDUDW\ZQHM3ROVNL ZĞZLDWRZ\PHNVSRUFLHWRZDURZ\P
,QWHUQDFMRQDOL]DFMDSURGXNFMLVSUDZLáDĪHWUDG\F\MQHPHWRG\PLHU]HQLDXG]LDáXNUDMXZĞZLDWR-Z\P HNVSRUFLH RUD] SU]HZDJL NRQNXUHQF\MQHM Z PQLHMV]\P VWRSQLXRG]ZLHUFLHGODMą U]HF]\ZLVWRĞü :]ZLą]NX]W\P]DF]Ċá\UR]ZLMDüVLĊDOWHUQDW\ZQHPHWRG\PLHU]HQLDVWUXPLHQLKDQGOX]DJUDQLF]QHJR ±QDSRGVWDZLHZDUWRĞFLGRGDQHM&HOHPRSUDFRZDQLDMHVWRFHQDZSá\ZXPLĊG]\QDURGRZHMIUDJPHQ-WDU\]DFMLSURGXNFMLQDNV]WDáWRZDQLHVLĊSR]\FMLNRQNXUHQF\MQHM3ROVNL6]F]HJyáRZDDQDOL]DREHMPXMH XG]LDá]DJUDQLF]QHMZDUWRĞFLGRGDQHMZHNVSRUFLHEUXWWR3ROVNLRUD]NV]WDáWRZDQLHVLĊSU]HZDJLNRQ-NXUHQF\MQHMQDED]LHLQGHNVX%DODVV\REOLF]RQHJRQDSRGVWDZLHPHWRG\WUDG\F\MQHM HNVSRUWEUXWWR MDNUyZQLHĪDOWHUQDW\ZQHM NUDMRZDZDUWRĞüGRGDQD =DVWRVRZDQLHQRZHJRSRGHMĞFLDGRDQDOL]RZDQLD SROVNLHJRHNVSRUWXXMDZQLáRGXĪ\Z]URVW]QDF]HQLD]DJUDQLF]QHMZDUWRĞFLGRGDQHMZEDGDQ\PRNUHVLH ħUyGáHPMHMSRFKRG]HQLDE\á\Z]QDF]Q\PVWRSQLXNUDMH8QLL(XURSHMVNLHM]ZáDV]F]D1LHPF\DVHN-WRU\ZSU]\SDGNXNWyU\FK)9$PLDáDQDMZLĊNV]H]QDF]HQLHFKDUDNWHU\]RZDá\VLĊGXĪ\PVWRSQLHP Z\NRU]\VWDQLDWHFKQRORJLL1DOHĪDá\GRQLFKĞURGNLWUDQVSRUWXRUD]PDV]\Q\LXU]ąG]HQLD,QQHZDUWRĞFL SU]\MPRZDá\WDNĪHLQGHNV\XMDZQLRQHMSU]HZDJLNRQNXUHQF\MQHMREOLF]RQHSU]\XZ]JOĊGQLHQLX]DJUD-QLF]QHMZDUWRĞFLGRGDQHM=DáRĪHQLHMHGQDNĪHZ\VRNLXG]LDá]DJUDQLF]QHMZDUWRĞFLGRGDQHMZHNVSRUFLH EUXWWRSRZRGXMHSRSUDZĊSR]\FMLNRPSDUDW\ZQHMNUDMXZKDQGOXPLĊG]\QDURGRZ\PMHVW]E\WGDOHNR LGąF\PXSURV]F]HQLHP0RĪHPLHüRQDSR]\W\ZQ\ZSá\ZDOHZQLHNWyU\FKVHNWRUDFKRND]DáVLĊRQ EDUG]RQLHZLHONLDOERQDZHWZDUWRĞFLZVNDĨQLNyZE\á\QLH]QDF]QLHZ\ĪV]HSU]\XZ]JOĊGQLHQLXMHG\QLH NUDMRZHMZDUWRĞFLGRGDQHM
