PDF File3XUFKDVLQJ +RPH ,PSURYHPHQWV &RPSOLPHQWV2I
&RQQHFWLFXW¶V6ROXWLRQWR 1HZ (QJODQG :HDWKHU
7KHXQIRUWXQDWHIDFWLVPDQ\SHRSOHZLOOLQYHVW PRUHWLPHLQWRWKHUHVHDUFKRIWKHSURGXFWV EUDQGVORRNVFRORUVDQGFKRLFHVWKDQWKH\ZLOORQ WKHFRQWUDFWRUVWKH\VHOHFWWRPDNHWKH LPSURYH PHQWVIRUWKHP,I\RX¶UHDGRLW\RXUVHOIHUPHDQ LQJ\RX¶UHJRLQJWRGRWKHZRUNDQGPDNHWKHLQ VWDOODWLRQRIWKHLPSURYHPHQWVRQ\RXURZQWKHQ \RXVKRXOGLQYHVWWKHWLPHLQUHVHDUFKLQJSURGXFWV DQGEUDQGV+RZHYHULI\RX¶UHOLNHPRVWRIRXU FXVWRPHUVWKHQRQGRLW\RXUVHOIHU\RX¶UHWKH NLQGRIKRPHRZQHUZKRXQGHUVWDQGVWKHYDOXHRI KLULQJWKHSURIHVVLRQDOVWRGRWKHMREULJKW<RX QHHGWRGR\RXUGXHGLOLJHQFHDQGLQYHVWLJDWH WKH
FRQWUDFWRUV\RX KLUH
'XHGLOLJHQFHJRHVEH\RQGWKHIDFWVILJXUHVDQG HYLGHQFHDFRQWUDFWRUFDQJLYH\RXGHPRQVWUDWLQJ WKHLUOHYHORIFRPSHWHQFHDQGFUDIWVPDQVKLS<RX DOVRKDYHWRWUXVW\RXULQVWLQFWV+RZGR\RXIHHO DERXWWKHP"'XULQJWKHLPSURYHPHQWV\RX¶UHJR LQJWREHDOORZLQJVWUDQJHUVWRDFFHVV\RXUKRPHVR \RXZDQWWRDVN\RXUVHOI³&DQ,WUXVWWKHVHSHR SOH"´:KDWLV\RXU³JXW´WHOOLQJ\RXZKHQ\RXLQWHU YLHZSRWHQWLDO FRQWUDFWRUV"
1RW *RLQJ 7R 3XWD 5RXQG 3HJ LQD 6TXDUH +ROH
:H¶UH QRW ULJKW IRUHYHU\ FOLHQW1RW HYHU\ KRPHLPSURYHPHQWFRPSDQ\LVULJKWIRUHYHU\FXV WRPHU¶VQHHGV7KHVDPHLVWUXHIRUXV:H¶UHQRW DQµDOOWKLQJVWRDOOSHRSOH¶FRPSDQ\WKRXJKZH¶G ORYHWKHRSSRUWXQLW\WRHDUQ\RXUWUXVWDQG\RXU EXVLQHVV
$W:HDWKHUWLWH6\VWHPVZHZDQW\RXUKRPHWREH µZHDWKHUWLJKW¶,W¶VPRUHWKDQMXVWDFXWHVORJDQRU QDPHIRURXUFRPSDQ\:HDUHFRPPLWWHGWRHYHU\ FXVWRPHUZH VHUYH
7REHWWHUXQGHUVWDQGWKLVLWPD\EHKHOSIXOWR NQRZKRZ:HDWKHUWLWH6\VWHPVZDVVWDUWHG2QHRI RXUIRXQGLQJSDUWQHUV6FRWW)HQQHOO\VWDUWHGLQ WKHUHVLGHQWLDOURRILQJEXVLQHVVZKHQKHZDV \HDUVROG+HVWDUWHGDVDURRIHUDQGZDVTXLFNO\ SURPRWHGWRPDQDJLQJPXOWLSOHFUHZVDOORYHUWKH VWDWHEHFDXVHRIKLVDELOLW\WREHVWXQGHUVWDQGWKH FXVWRPHU¶VQHHGVDQGWKHQEHVWFRRUGLQDWHWKH FUHZVDQGPDWHULDOVEDVHGRQWKRVHQHHGVDQG EXGJHWV
$WWKHWLPH6FRWWZDVWKHODUJHVWLQGHSHQGHQWLQ VWDOOHUIRUWKHVSHFLDOW\VWRUHVRSHUDWHGE\WKH QD

WLRQDOGHSDUWPHQWVWRUH6HDUV7KHUHKHPHWKLV IXWXUHSDUWQHU1LFN5RVVZKRPDQDJHGWKHQRUWK HDVWUHJLRQIRU6HDUV)URP6HDUV1LFNDQG6FRWW PRYHGRYHUWRZRUNIRU+RPH'HSRWIRUPDQ\ \HDUV6KRUWO\DIWHU6FRWWOHIW+RPH'HSRWEHFDXVH KHDQG+RPH'HSRW¶VLGHDVRQWDNLQJFDUHRIFXV WRPHUVZHUHLQFRQIOLFW6FRWWWUDQVIHUUHGWRDQ RWKHUODUJHLQGHSHQGHQWFRQWUDFWRUVHUYLFLQJ&RQ QHFWLFXWEXWVWD\HGLQWRXFKZLWKKLVVRRQWREH SDUWQHU$IWHUVHYHUDO\HDUVZRUNLQJIRURWKHUV 6FRWWDQG1LFNGHFLGHGLWZDVWLPHWRVWDUWWKHLU RZQFRPSDQ\DQG:HDWKHUWLWH6\VWHPVZDV ERUQ
)URPWKHVWGD\:HDWKHUWLWH6\VWHPVRSHQHGRXU GRRUVZHKDYHDOZD\VEHHQIRFXVHGRQLQGLYLGXDO FXVWRPHUTXDOLW\%HWZHHQ6FRWW 1LFNWKH\KDG SOHQW\RINQRZOHGJHDQGH[SHULHQFHZRUNLQJIRU RWKHUILUPVERWKKXJHDQGVPDOORQKRZDKRPH LPSURYHPHQWFRQWUDFWRUEXVLQHVVVKRXOGQ¶WEHUXQ DQGGHFLGHGLWZDVWLPHIRUDTXDOLW\FRPSDQ\LQ &RQQHFWLFXW2QHZKRSXWWKHFXVWRPHU¶VQHHGV DKHDGRIRXURZQ:DOW'LVQH\VDLG³'RZKDW\RX GRVRZHOOWKDWRWKHUVFDQ¶WKHOSEXWWHOORWKHUV DERXW\RX´:HOORXUFXVWRPHUVWHOORWKHUVDERXW XVLQYDU\LQJZD\V
7RGD\ZHDUH RQHRIWKHIHZ FRPSDQLHVLQ WKHDUHDWR FDUU\D]HUR FRPSODLQWV UH FRUGZLWK WKH %HWWHU%XVLQHVV%XUHDX«]HUR FRPSODLQWV,W¶VZKDWDOORZVXVWR PDLQWDLQRXU$UDWLQJZLWKWKH %%%$GGLWLRQDOO\ZHPDLQWDLQ D
VWHOODUUHFRUGZLWK$QJLH¶V /LVW
'HVSLWHWKHVHQDWLRQDOO\UHF RJQL]HGRUJDQL]DWLRQVDF NQRZOHGJLQJRXUFRPPLW PHQWWRTXDOLW\VHUYLFHWKH WUXHWHVWDPHQWWRRXUTXDOLW\ DQGFRPPLWPHQWLVWKDW IURPRXURZQ FXVWRPHUV ([LVWLQJFXVWRPHUVRUWKRVH ZH¶UHGRLQJZRUNIRU ULJKW
QRZUHIHUPRUHWKDQRIDOORXUQHZFXVWRPHUV WRXV7KDW¶VULJKWPRUHWKDQ7KDW¶V XQKHDUG RILQWKLVLQGXVWU\:HGRPDUNHWDQGDGYHUWLVH LQ RWKHUPHGLXPV\HWWKHPDMRULW\RIRXUZRUNFRPHV IURPSHRSOHMXVWOLNH\RX7KHSHRSOHZKRQHHG DQGZDQWKRPHLPSURYHPHQWV6SHFLILFDOO\IRUUH SODFLQJRUUHSDLULQJWKHLUURRIUHSODFLQJ ZLQGRZV
VLGLQJRUJXWWHUVDQGWKH\¶UHVRSOHDVHGZLWKWKHLU H[SHULHQFHZLWKXVDQGWKHZRUNZHGRWKH\¶UHZLOO LQJWRWHOOWKHLUIULHQGVIDPLO\PHPEHUVDQGFR ZRUNHUVDERXW XV
<RXFDQEHKDSS\ZLWKRQH¶VZRUNDQGNHHSLWDOOWR \RXUVHOI<HWZKHQ\RXUHIHUDFRPSDQ\HVSHFLDOO\ DKRPHLPSURYHPHQWFRPSDQ\WRVRPHRQHHOVH \RX¶UHWDNLQJRQWKHUHVSRQVLELOLW\RIKRSLQJWKH\ ZLOOEHWDNHQFDUHRIDVZHOODV\RXZHUH2WKHUZLVH \RXZLOOQHYHUKHDUWKHHQGRIDEDGUHIHUUDO:H GRQ¶WWDNHUHIHUUDOVOLJKWO\,WLVDPDMRUSDUWRIRXU EXVLQHVV,WLVDOVRZKDWDOORZVXVWRNHHSRXUUDWHV DQGIHHV DIIRUGDEOH
:LWKUHJDUGWRRXULQVWDOOWHDPV HYHU\FXVWRPHUZLOOKDYHDIRUH PDQDQGSURMHFWPDQDJHUDV VLJQHGWRKLVRUKHUSURMHFW<RX ZLOOKDYHDGLUHFWSRLQWRIFRQ WDFWLQRXUFRPSDQ\ZLWKZKRP \RXFDQDVN\RXUTXHVWLRQVDQG YRLFH\RXUFRQFHUQV<RXZRQ¶W ZRQGHUWRZKRP\RX¶UHVXS SRVHGWRFDOOWRWDONZLWKDWWKRVH ELJFRPSDQLHV7KHUHDUHQR DXWRPDWHGYRLFHPHVVDJLQJ V\V WHPV\RXQHHGWROHDYHDPHVVDJHRQDQGWKHQ KRSH VRPHRQH JHWV EDFN WR \RX LQ WLPH« EHIRUH WKH JX\V WKHUH ZRUNLQJ RQ \RXU KRPH JR DQ\ IXUWKHU DQG SR WHQWLDOO\ ZRUVHQ D VLWXDWLRQ
<RXDOVRZRQ¶WKDYHWRZRUU\DERXWWDONLQJWRWKH RQHVZKRDUHPDNLQJFKDQJHVRQWKHZRUNEHFDXVH WKLVZLOOFDXVHWKHPPRUHZRUN<RX¶OOKDYHDQRE MHFWLYHSURMHFWPDQDJHUZKRVHHQWLUHUHVSRQVLELOLW\ LVPDNLQJVXUH\RXUSURMHFWPRYHVDORQJSURSHUO\ DQGWKDW\RX¶UHKDSS\ZLWKWKHZRUN(YHU\SURMHFW PDQDJHULVIDFWRU\FHUWLILHGRQWKHSURGXFWVZHLQ VWDOO0DQ\RIWKHPVWDUWHGDVLQVWDOOHUVDQGKDYH EHHQSURPRWHGEHFDXVHWKH\KDYHWKHVDPHDWWLWXGH :HDWKHUWLWHZDVIRXQGHGRQ RULJLQDOO\
2IIHULQJWKHEHVWSURGXFWVKDYLQJWKHULJKWLQ VWDOOHUVZKRDUHFUDIWVPHQWKDWDUHSURSHUO\ WUDLQHGDQGFHUWLILHGDQGH[FHHGLQJ\RXUH[SHFWD WLRQVIURPVWDUWWRILQLVKLVZKDWPDNHV:HDWKHUWLWH 6\VWHPVWKHFKRLFHRIVRPDQ\DVZHOODVEHLQJUH IHUUHGWRRWKHUVE\VR PDQ\
$GGLWLRQDOO\ZHWUHDWHYHU\FXVWRPHU¶VSURSHUW\DV LILWZHUHRXURZQ2XUFUHZ¶VFOHDQXSDIWHUDMRELV H[FHSWLRQDO

KLJKSUHVVXUHVDOHVWDFWLFV,W¶VDPD]LQJWKHQXPEHU RIFRPSODLQWVZH¶YHVHHQUHSRUWHGDWZHEVLWHVRI VDOHVPHQVSHQGLQJDVPXFKDVKRXUVLQDSHUVRQ¶V KRPH7KHFRPSODLQWVDWWKH%HWWHU%XVLQHVV%XUHDX DQG'HSDUWPHQWRI&RQVXPHU3URWHFWLRQDUHDPLOH ORQJLI\RXWDNHWKHWLPHWRLQYHVWLJDWH WKHP
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
<RXVHH\RXZDQWDFRPSDQ\ZKRLVH[SHULHQFHGQRW RQO\LQWKHEXVLQHVVRIKRPHLPSURYHPHQWVEXWDOVR DFRPSDQ\ZKRKDVWKHSURSHUO\WUDLQHGDQGTXDOL ILHGSHRSOH7UDLQHGRQWKHSURGXFWVWKH\LQVWDOODQG H[SHULHQFHGLQVWDOOLQJWKRVHSURGXFWVLQ\RXUDUHDLQ \RXUQHLJKERUKRRGVDQGLQ\RXUKRPH7KHUH VDQ DUWWRLW<RXVKRXOGNQRZWKHSHRSOHZKRDUHJRLQJ WRVKRZXSLQ\RXUKRPHDQGWUXVWWKH\ZLOOVKRZXS DQGGRWKHZRUN\RX YHFRQWUDFWHG IRU
)LQDOO\ ZLWK DQ\ KRPH LPSURYHPHQW SURMHFW WKH PD MRU FRQFHUQ LV WKH LQYHVWPHQW :KDW ZLOO LW XOWLPDWHO\ FRVW" 7KDW¶V D JRRG TXHVWLRQ DQG WKH ULJKW RQH WR
DVN,WLVKRZHYHU QRWDOZD\VWKHED VLVXSRQZKLFKWR GHWHUPLQHZKLFK FRQWUDFWRU\RX ZLOO VHOHFW5HPHPEHU WKHEULGJHVDQG URDGV\RXGULYH RYHUHYHU\GD\DUH LQVWDOOHGE\WKH ORZHVWELGGHUWKH FRPSDQ\ZKR FDPHLQZLWKWKH ORZHVWSULFHIRU WKH MRE7KLQNDERXW KRZPDQ\RIWKRVH SHVN\RUDQJHFRQ VWUXFWLRQEDUUHOV WKDWSRSXSLQWKH VSULQJIRUURDG UH SDLUV2UKRZPDQ\SRWKROHV\RXKLWHYHU\GD\RQWKH GULYHWRZRUN7KRVHVXUIDFHVZHUHSXWLQDWWKH FKHDSHVWSULFHQRWDWWKHEHVWYDOXH7KHXSIURQWLQ YHVWPHQWPD\KDYHEHHQORZEXWWKHRQJRLQJFRVWV DUH VWDJJHULQJ