Tower Reports Half Year Results

25 May 2023
Tower Limited
Half Year 2023 Results for Announcement to Market
In accordance with NZX Listing Rule 3.5.1 we enclose the following for release to the market
in relation to Tower Limited’s (NZX/ASX: TWR) Half Year 2023 Year Results:

1 Media Release
2 Results Announcement
3 Interim Financial Statements (including Independent Auditor’s Review
Report)
4 Results Announcement Presentation
5 Results Announcement Call Script

Tower’s Chairman Michael Stiassny, Chief Executive Officer Blair Turnbull and Chief Financial
Officer Paul Johnston will discuss the half year results at 10:00am New Zealand time today.
Tower’s Board confirms for the purposes of ASX Listing Rule 1.15.3 that Tower continues to
comply with the NZX Main Board Listing Rules.

ENDS

This announcement has been authorised by the Tower Board.

Blair Turnbull
Chief Executive Officer
Tower Limited

For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Sustainability
+64 21 815 149
emily.davies@tower.co.nz
Market Information
NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
ASX Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Australia

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Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Classification: Highly Sensitive
25 May, 2023

Tower Reports Half Year Results

Tower Limited (NZX/ASX: TWR) has today announced its half year results reporting improved
revenue growth and expense control, with profits impacted by catastrophic weather events. For the
half year to 31 March 2023, the insurer recorded an underlying loss including large events of $3.3m
versus profit of $5.4m in the 2022 half year, and a reported loss of $5.1m versus a $3m profit in
HY22.

Summary of key HY23 results:
• Gross written premium (GWP) $245m, up 15% on HY22
• Customer growth up 5% to 320,000
• Business as usual (BAU) claims ratio 51.6% vs 48.6% in HY22
• Management expense ratio (MER) improved to 35.1% vs 35.8% in HY22
• Underlying net profit after tax (NPAT) excluding large event costs $23.6m vs $18.2m in HY22
• Large event costs $33.9m vs $17.9m in HY22
• Combined operating ratio including large events (COR) 105.3% vs 94.8% in HY22
• Underlying loss including large events $3.3m vs $5.4m profit in HY22
• Reported loss $5.1m vs $3m profit in HY22, including strengthening of the residual
Canterbury earthquake and multi-policy discount remediation provisions, partially offset by
the sale of Tower’s Papua New Guinea subsidiary and its building in Suva.

Tower CEO, Blair Turnbull says, “Investments in technology, operational efficiencies and robust
reinsurance continue to underpin Tower’s resilience and ability to address external challenges. We
are proactively managing climate related weather impacts through risk-based pricing and product
innovations, keeping pace with inflation via targeted rating and underwriting actions and addressing
increasing vehicle theft with rating and excess changes.

“Tower continues to grow both premium and customer numbers while reducing our expense ratio.
We expect to deliver a full year profit along with sustainable long-term growth in revenue and
earnings,” he says.

Working efficiently to manage catastrophic events
Approximately 30% of claims for the Auckland and Upper North Island weather event and Cyclone
Gabrielle, and 5% of claims for Cyclones Judy and Kevin in Vanuatu have been completed and
Tower is working efficiently to settle the remainder. These events are predominantly covered by
reinsurance. The cost to Tower for each of the New Zealand catastrophe events is limited to an
$11.9m excess, while the estimated cost of the Vanuatu cyclones is $10m net of reinsurance
recoveries.

Acknowledging the change in risk environment, Mr Turnbull says, “Now more than ever it is critical
that New Zealand maintains a strong insurance industry for the future. Tower remains focused on
careful risk selection and risk-based pricing, which is a fairer way to price insurance as customers
only pay for the risks that apply to their property.”

In 2023 Tower will expand its risk-based pricing model to include landslide and coastal
hazards. Advanced selection for landslide risks is already in place across New Zealand.

Investments in digital technology and data delivering targeted growth and efficiency
Strong rating actions combined with organic growth have delivered GWP growth of 15% year-on-
year to $245m.

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Classification: Highly Sensitive
Tower’s customer-facing digital sales and service platform, My Tower, has now been launched in
seven Pacific countries, contributing to My Tower registrations increasing 44% to 237,000 in the
past year.

Improving efficiencies as digitisation continues to drive down Tower’s costs to acquire and serve
customers along with continued focus on cost control has seen overall MER improving to 35.1%
versus 35.8% in HY22.

Increasing motor theft and a higher frequency of motor claims post-Covid have contributed to an
increase in the BAU claims ratio to 51.6% compared to 48.6% in HY22.

Looking forward
Following a storm in Auckland on 9 May, which is expected to be a large event with costs in the
range of $4m to $6m, Tower has between $10m and $12m large events allowance remaining in the
second half.

Tower has now successfully completed the reinstatement of its reinsurance arrangements
providing important protection from the volatility of large events. Tower has cover for any potential
third and fourth catastrophe event up to $889m in the financial year.

Tower’s full year underlying NPAT guidance remains between $8m and $13m, assuming full
utilisation of the $50m large events allowance. GWP guidance is between 15% and 20% reflecting
organic growth and a strong rating response to address inflation, rising reinsurance premiums and
higher motor claims costs.

Tower will not pay an interim dividend. A decision on a full year dividend will be made when
Tower’s full year results are finalised.

ENDS

This announcement has been authorised by Blair Turnbull, Chief Executive Officer, Tower Limited.

For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Sustainability
+64 21 815 149
emily.davies@tower.co.nz

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Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019



Results for announcement to the market
Name of issuer Tower Limited
Reporting Period 6 months to 31 March 2023
Previous Reporting Period 6 months to 31 March 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$500,645 139%
Total Revenue $501,428 134%
Net profit/(loss) from
continuing operations
$(7,442) N/A
Total net profit/(loss) $(5,102) N/A
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend has been proposed.
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.47 $0.52
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Revenue from continuing operations includes $259.4m from
reinsurance and other recoveries as a result of recent
catastrophic weather events, along with $241.2m of premium
and other income.

Profits were impacted by recent catastrophic weather events,
resulting in a total net loss of $5.1m vs total net profit of $2.9m in
prior comparable period.

Please refer to the 2023 half year results presentation for further
information.
Authority for this announcement
Name of person

authorised
to make this announcement
Tania Pearson, Company Secretary
Contact person for this
announcement
Emily Davies, Head of Corporate Affairs and Sustainability
Contact phone number +64 21 815 149

Classification: Sensitive
Contact email address emily.davies@tower.co.nz
Date of release through MAP

25/05/2023

Unaudited financial statements accompany this announcement.

---

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March balances unaudited, September audited

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ƐƐĞƚƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞϳ͘ϮͲ ϮϬ͕Θϭϭ
ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐϮϳ͕ϭϮς Ϯϯ͕Θεϯ
ĞĨĞƌƌĞĚŝŶƐƵƌĂŶĐĞĐŽƐƚƐϯΘ͕ϮϬς ϯϳ͕Θϭε
ZŝŐŚƚͲŽĨͲƵƐĞĂƐƐĞƚƐϮρ͕ϮΘϬ Ϯϯ͕ϯϮς
WƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚκ͕ΘϮϳ ρ͕κϭϳ
/ŶƚĂŶŐŝďůĞĂƐƐĞƚƐς͘ϭεε͕ϳΘϯ εκ͕ςρϯ
dŽƚĂůĂƐƐĞƚƐϭ͕ϬςϮ͕ςςϭΘϬκ͕Ϯϭϯ
>ŝĂďŝůŝƚŝĞƐ
WĂLJĂďůĞƐςκ͕ϭεΘ ρΘ͕εϭϭ
hŶĞĂƌŶĞĚƉƌĞŵŝƵŵƐϮκΘ͕Ϭςϭ ϮϯΘ͕ϭϭς
KƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐ
Ϯ͘Ϯ ϯες͕ϯρς ϭϮκ͕ρϯϭ
ƵƌƌĞŶƚƚĂdžůŝĂďŝůŝƚŝĞƐςϭϳϭϯς
>ŝĂďŝůŝƚŝĞƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞϳ͘ϮͲε͕ϮρΘ
WƌŽǀŝƐŝŽŶƐϭϮ͕ϳςρ ϭϭ͕Θϳϯ
>ĞĂƐĞůŝĂďŝůŝƚŝĞƐϯρ͕εϬϯ ϯρ͕Ϭρκ
ĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƚŝĞƐε͕ϭϯϳ Θ͕ΘϬς
dŽƚĂůůŝĂďŝůŝƚŝĞƐϳςϳ͕ϬϯϳκΘς͕ςΘρ
EĞƚĂƐƐĞƚƐϮερ͕ςϮκϯϭϳ͕ρϮΘ
ƋƵŝƚLJ
ŽŶƚƌŝďƵƚĞĚĞƋƵŝƚLJρ͘ϭ κςϬ͕ϭεϭ κςϬ͕ϭεϭ
ĐĐƵŵƵůĂƚĞĚůŽƐƐĞƐ;ρε͕ϳΘϯͿ ;κϭ͕ϮϭϮͿ
ZĞƐĞƌǀĞƐ;ϭϬκ͕ϳΘκͿ ;ϭϬϭ͕κρϭͿ
dŽƚĂůĞƋƵŝƚLJϮερ͕ςϮκϯϭϳ͕ρϮΘ
dŚĞĂďŽǀĞƐƚĂƚĞŵĞŶƚƐŚŽƵůĚďĞƌĞĂĚŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐŶŽƚĞƐ͘
dŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐǁĞƌĞĂƉƉƌŽǀĞĚĨŽƌŝƐƐƵĞďLJƚŚĞŽĂƌĚŽŶϮρDĂLJϮϬϮϯ͘
DŝĐŚĂĞůW^ƚŝĂƐƐŶLJ'ƌĂŚĂŵZ^ƚƵĂƌƚ
ŚĂŝƌŵĂŶŝƌĞĐƚŽƌ
3
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
ŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶĞƋƵŝƚLJ
&ŽƌƚŚĞ,ĂůĨzĞĂƌŶĚĞĚϯϭDĂƌĐŚϮϬϮϯ
ΨƚŚŽƵƐĂŶĚƐ
EŽƚĞ
ŽŶƚƌŝďƵƚĞĚĞƋƵŝƚLJ
;ĐĐƵŵƵůĂƚĞĚůŽƐƐĞƐͿͬ
ZĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ
ZĞƐĞƌǀĞƐ
EŽŶͲĐŽŶƚƌŽůůŝŶŐ
ŝŶƚĞƌĞƐƚ
dŽƚĂůƋƵŝƚLJ
,ĂůĨLJĞĂƌĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϯ
ĂůĂŶĐĞĂƐĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ
κςϬ͕ϭεϭ;κϭ͕ϮϭϮͿ ;ϭϬϭ͕κρϭͿͲϯϭϳ͕ρϮΘ
ŽŵƉƌĞŚĞŶƐŝǀĞůŽƐƐ
>ŽƐƐĨŽƌƚŚĞŚĂůĨLJĞĂƌͲ;ρ͕ϭϬϮͿ ͲͲ ;ρ͕ϭϬϮͿ
ƵƌƌĞŶĐLJƚƌĂŶƐůĂƚŝŽŶĚŝĨĨĞƌĞŶĐĞƐͲͲ ;Ϯ͕ϭϯϬͿͲ ;Ϯ͕ϭϯϬͿ
ZĞĐůĂƐƐŝĨŝĐĂƚŝŽŶŽĨĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJ
ƚƌĂŶƐůĂƚŝŽŶƌĞƐĞƌǀĞƚŽƉƌŽĨŝƚĂŶĚůŽƐƐ
ϳ͘Ϯ ͲͲ ρκκͲρκκ
ZĞǀĂůƵĂƚŝŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽ
ƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ
ϳ͘ϮͲϭ͕ϳκϳ ;ϭ͕ϳκϳͿͲͲ
dŽƚĂůĐŽŵƉƌĞŚĞŶƐŝǀĞůŽƐƐͲ;ϯ͕ϯρρͿ ;ϯ͕ϯϯϯͿͲ ;ς͕ςΘΘͿ
dƌĂŶƐĂĐƚŝŽŶƐǁŝƚŚƐŚĂƌĞŚŽůĚĞƌƐ
ŝǀŝĚĞŶĚƉĂLJŵĞŶƚͲ;ϭρ͕ϮϭςͿ ͲͲ
;ϭρ͕ϮϭςͿ
dŽƚĂůƚƌĂŶƐĂĐƚŝŽŶƐǁŝƚŚƐŚĂƌĞŚŽůĚĞƌƐͲ;ϭρ͕ϮϭςͿ ͲͲ ;ϭρ͕ϮϭςͿ
ƚƚŚĞĞŶĚŽĨƚŚĞŚĂůĨLJĞĂƌκςϬ͕ϭεϭ;ρε͕ϳΘϯͿ ;ϭϬκ͕ϳΘκͿͲ Ϯερ͕ςϮκ
,ĂůĨLJĞĂƌĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϮ
ĂůĂŶĐĞĂƐĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϭ
κεϮ͕κϮκ;ϯε͕εερͿ ;ϭϬρ͕ϯΘρͿ Ϯ͕ςϳς ϯκε͕ϳϮϬ
ŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ
WƌŽĨŝƚĨŽƌƚŚĞŚĂůĨLJĞĂƌͲϮ͕εϯϬ Ͳ ρϮ Ϯ͕εΘϮ
ƵƌƌĞŶĐLJƚƌĂŶƐůĂƚŝŽŶĚŝĨĨĞƌĞŶĐĞƐͲͲ ;ϯκϬͿ ϭκ;ϯϮςͿ
dŽƚĂůĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞͲϮ͕εϯϬ ;ϯκϬͿ ςςϮ͕ςρς
dƌĂŶƐĂĐƚŝŽŶƐǁŝƚŚƐŚĂƌĞŚŽůĚĞƌƐ
ĂƉŝƚĂůƌĞƚƵƌŶƚŽƐŚĂƌĞŚŽůĚĞƌƐρ͘ϭ;ϯϬ͕ςϮρͿͲͲͲ;ϯϬ͕ςϮρͿ
WƵƌĐŚĂƐĞŽĨŶŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚƐ ρ͘ϭ;ϭ͕ρεεͿͲͲ ;Ϯ͕ϳκϮͿ;κ͕ϯκϭͿ
ŝǀŝĚĞŶĚƉĂLJŵĞŶƚͲ;ϭϬ͕ρκϭͿ ͲͲ;ϭϬ͕ρκϭͿ
dŽƚĂůĐŽŵƉƌĞŚĞŶƐŝǀĞůŽƐƐ;ϯϮ͕ϮϮκͿ;ϭϬ͕ρκϭͿ Ͳ ;Ϯ͕ϳκϮͿ ;κρ͕ρϬϳͿ
ƚƚŚĞĞŶĚŽĨƚŚĞŚĂůĨLJĞĂƌκςϬ͕ϮϬϬ;κϳ͕ςϬςͿ ;ϭϬρ͕ϳϮρͿͲ ϯϬς͕Θςε
dŚĞĂďŽǀĞƐƚĂƚĞŵĞŶƚƐŚŽƵůĚďĞƌĞĂĚŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐŶŽƚĞƐ͘
ƚƚƌŝďƵƚĞĚƚŽ^ŚĂƌĞŚŽůĚĞƌƐ
4
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
ŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐĂƐŚĨůŽǁƐ
&ŽƌƚŚĞ,ĂůĨzĞĂƌŶĚĞĚϯϭDĂƌĐŚϮϬϮϯ
ΨƚŚŽƵƐĂŶĚƐEŽƚĞϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
ĂƐŚĨůŽǁƐĨƌŽŵŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐ
WƌĞŵŝƵŵƐƌĞĐĞŝǀĞĚϮϮϳ͕κεΘ ϮϭϬ͕ϳϳε
/ŶƚĞƌĞƐƚƌĞĐĞŝǀĞĚρ͕ϭεϮ Ϯ͕Θεκ
&ĞĞĂŶĚŽƚŚĞƌŝŶĐŽŵĞƌĞĐĞŝǀĞĚϮ͕ϭκϳ Ϯ͕ρϳϯ
ZĞŝŶƐƵƌĂŶĐĞĂŶĚŽƚŚĞƌƌĞĐŽǀĞƌŝĞƐƌĞĐĞŝǀĞĚκ͕Θκρϳϳϯ
ZĞŝŶƐƵƌĂŶĐĞƉĂŝĚ;ϯϯ͕ϭϳϯͿ ;ϯϮ͕εϮςͿ
ůĂŝŵƐƉĂŝĚ;ϭκϮ͕ϮςεͿ ;ϭϬΘ͕ςϯϯͿ
ŵƉůŽLJĞĞĂŶĚƐƵƉƉůŝĞƌƉĂLJŵĞŶƚƐ;κρ͕ϬϭϭͿ ;κε͕ϳρϳͿ
/ŶĐŽŵĞƚĂdžƉĂŝĚ;ϭ͕ϬςϯͿ;ςκςͿ
EĞƚĐĂƐŚŝŶĨůŽǁĨƌŽŵŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐϳ͘ϭϭΘ͕ϭςςϮρ͕Ϭρϳ
ĂƐŚĨůŽǁƐĨƌŽŵŝŶǀĞƐƚŝŶŐĂĐƚŝǀŝƚŝĞƐ
WƌŽĐĞĞĚƐĨƌŽŵƐĂůĞŽĨŝŶƚĞƌĞƐƚďĞĂƌŝŶŐŝŶǀĞƐƚŵĞŶƚƐϯϯρ͕ϮϳϮ ϭϯε͕ΘεϬ
WĂLJŵĞŶƚƐĨŽƌƉƵƌĐŚĂƐĞŽĨŝŶƚĞƌĞƐƚďĞĂƌŝŶŐŝŶǀĞƐƚŵĞŶƚƐ;ϯϮϮ͕ϮςεͿ ;ϭϮϮ͕ϯκϮͿ
WĂLJŵĞŶƚƐĨŽƌƉƵƌĐŚĂƐĞŽĨŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐς͘ϭ;Θ͕ϭςϯͿ ;Θ͕ϬρεͿ
WĂLJŵĞŶƚƐĨŽƌƉƵƌĐŚĂƐĞŽĨĐƵƐƚŽŵĞƌƌĞůĂƚŝŽŶƐŚŝƉƐς͘ϭ;ρ͕εϬϬͿ;ρςϬͿ
WĂLJŵĞŶƚƐĨŽƌƉƵƌĐŚĂƐĞŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚ;ρϮΘͿ;ϭκͿ
WƌŽĐĞĞĚƐĨƌŽŵƐĂůĞŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚϳ͘Ϯρ͕ϳκςͲ
WƌŽĐĞĞĚƐĨƌŽŵƐĂůĞŽĨĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶ;ŶĞƚŽĨĐĂƐŚĚŝƐƉŽƐĞĚͿ ϳ͘ϮϮ͕ςςρͲ
EĞƚĐĂƐŚŝŶĨůŽǁĨƌŽŵŝŶǀĞƐƚŝŶŐĂĐƚŝǀŝƚŝĞƐς͕ΘϮϯΘ͕εϭρ
ĂƐŚĨůŽǁƐĨƌŽŵĨŝŶĂŶĐŝŶŐĂĐƚŝǀŝƚŝĞƐ
WĂLJŵĞŶƚƐĨŽƌĐĂƉŝƚĂůƌĞƚƵƌŶƚŽƐŚĂƌĞŚŽůĚĞƌƐρ͘ϭͲ ;ϯϬ͕ςϮρͿ
WƵƌĐŚĂƐĞŽĨŶŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚƐͲ ;κ͕ϯκϭͿ
ŝǀŝĚĞŶĚƉĂŝĚ;ϭρ͕ϮϭςͿ ;ϭϬ͕ρκϭͿ
WĂLJŵĞŶƚƐƌĞůĂƚŝŶŐƚŽůĞĂƐĞůŝĂďŝůŝƚŝĞƐ;ϯ͕ϯκϳͿ ;ϯ͕ϬϳϳͿ
EĞƚĐĂƐŚŽƵƚĨůŽǁĨƌŽŵĨŝŶĂŶĐŝŶŐĂĐƚŝǀŝƚŝĞƐ;ϭΘ͕ρςϯͿ;κΘ͕ρΘκͿ
EĞƚŝŶĐƌĞĂƐĞͬ;ĚĞĐƌĞĂƐĞͿŝŶĐĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐς͕κϮς;ϭκ͕ςϭϮͿ
ĨĨĞĐƚŽĨĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĂƚĞĐŚĂŶŐĞƐ;Ϯ͕ϭϯϬͿ;ϯϮςͿ
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚĞŚĂůĨLJĞĂƌϳ͘ϭεϮ͕ϮεΘ ϭϭς͕ϭϮε
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞĞŶĚŽĨƚŚĞŚĂůĨLJĞĂƌϳ͘ϭες͕ρεκϭϬϭ͕ϭεϭ
dŚĞĂďŽǀĞƐƚĂƚĞŵĞŶƚƐŚŽƵůĚďĞƌĞĂĚŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐŶŽƚĞƐ͘
5
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
EŽƚĞƐƚŽƚŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ
ϭ
ϭ͘ϭ ďŽƵƚƚŚŝƐZĞƉŽƌƚ
Ă͘ ŶƚŝƚŝĞƐƌĞƉŽƌƚŝŶŐ
ď͘ ^ƚĂƚƵƚŽƌLJďĂƐĞ
Đ͘ ĂƐŝƐŽĨƉƌĞƉĂƌĂƚŝŽŶ
Ě͘ ĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ
Ğ͘ ZĞͲƉƌĞƐĞŶƚĂƚŝŽŶŽĨĐŽŵƉĂƌĂƚŝǀĞƐ
ϭ͘Ϯ ƌŝƚŝĐĂůĂĐĐŽƵŶƚŝŶŐũƵĚŐŵĞŶƚƐĂŶĚĞƐƚŝŵĂƚĞƐ
EĞƚŽƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐEŽƚĞϮ͘κ͕ŶŶƵĂůZĞƉŽƌƚ;ϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮͿ
>ŝĂďŝůŝƚLJĂĚĞƋƵĂĐLJƚĞƐƚEŽƚĞϮ͘ρ͕ŶŶƵĂůZĞƉŽƌƚ;ϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮͿ
/ŶƚĂŶŐŝďůĞĂƐƐĞƚƐEŽƚĞς͘Ϯ͕ŶŶƵĂůZĞƉŽƌƚ;ϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮͿ
>ĞĂƐĞůŝĂďŝůŝƚŝĞƐ;ŝŶĐƌĞŵĞŶƚĂůďŽƌƌŽǁŝŶŐƌĂƚĞͿ EŽƚĞς͘ϯĂ;ŝŝͿ͕ŶŶƵĂůZĞƉŽƌƚ;ϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮͿ
ĞĨĞƌƌĞĚƚĂdžEŽƚĞϳ͘ϯ͕ŶŶƵĂůZĞƉŽƌƚ;ϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮͿ
KǀĞƌǀŝĞǁ
/ŶƉƌĞƉĂƌŝŶŐƚŚĞƐĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŵĂŶĂŐĞŵĞŶƚŝƐƌĞƋƵŝƌĞĚƚŽŵĂŬĞĞƐƚŝŵĂƚĞƐĂŶĚƌĞůĂƚĞĚ
ĂƐƐƵŵƉƚŝŽŶƐĂďŽƵƚƚŚĞĨƵƚƵƌĞ͘dŚĞĞƐƚŝŵĂƚĞƐĂŶĚƌĞůĂƚĞĚĂƐƐƵŵƉƚŝŽŶƐĂƌĞďĂƐĞĚŽŶĞdžƉĞƌŝĞŶĐĞĂŶĚŽƚŚĞƌĨĂĐƚŽƌƐ
ƚŚĂƚĂƌĞĐŽŶƐŝĚĞƌĞĚƚŽďĞƌĞĂƐŽŶĂďůĞ͕ĂŶĚĂƌĞƌĞǀŝĞǁĞĚŽŶĂŶŽŶŐŽŝŶŐďĂƐŝƐ͘ZĞǀŝƐŝŽŶƐƚŽƚŚĞĞƐƚŝŵĂƚĞƐĂƌĞ
ƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞƉĞƌŝŽĚŝŶǁŚŝĐŚƚŚĞLJĂƌĞƌĞǀŝƐĞĚ͕ŽƌĨƵƚƵƌĞƉĞƌŝŽĚƐŝĨƌĞůĞǀĂŶƚ͘dŚĞŬĞLJĂƌĞĂƐŝŶǁŚŝĐŚĞƐƚŝŵĂƚĞƐ
ĂŶĚƌĞůĂƚĞĚĂƐƐƵŵƉƚŝŽŶƐĂƌĞĂƉƉůŝĞĚĂƌĞĂƐĨŽůůŽǁƐ͗
dŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞƐŝdžŵŽŶƚŚƐĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϯĂƌĞƵŶĂƵĚŝƚĞĚ͘
dŚĞƉƌŝŶĐŝƉĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐĂĚŽƉƚĞĚŝŶƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞĐŽŶƐŝƐƚĞŶƚǁŝƚŚ
ƚŚŽƐĞŽĨƚŚĞĂƵĚŝƚĞĚĂŶŶƵĂůĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͘
dŚŝƐƐĞĐƚŝŽŶƉƌŽǀŝĚĞƐŝŶĨŽƌŵĂƚŝŽŶƚŚĂƚŝƐŚĞůƉĨƵůƚŽĂŶŽǀĞƌĂůůƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚ
ƚŚĞĂƌĞĂƐŽĨĐƌŝƚŝĐĂůĂĐĐŽƵŶƚŝŶŐũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƚŝŵĂƚĞƐŝŶĐůƵĚĞĚŝŶƚŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘/ƚĂůƐŽ
ŝŶĐůƵĚĞƐĂƐƵŵŵĂƌLJŽĨdŽǁĞƌΖƐŽƉĞƌĂƚŝŶŐƐĞŐŵĞŶƚƐ͘
dŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƉƌĞƐĞŶƚĞĚĂƌĞƚŚŽƐĞŽĨdŽǁĞƌ>ŝŵŝƚĞĚĂŶĚĂůůŽĨŝƚƐƐƵďƐŝĚŝĂƌŝĞƐ;ƚŚĞΗ'ƌŽƵƉΗͿ͘dŚĞ
ĂĚĚƌĞƐƐŽĨƚŚĞ'ƌŽƵƉΖƐƌĞŐŝƐƚĞƌĞĚŽĨĨŝĐĞŝƐϭϯς&ĂŶƐŚĂǁĞ^ƚƌĞĞƚ͕ƵĐŬůĂŶĚ͕EĞǁĞĂůĂŶĚ͘
dŽǁĞƌ>ŝŵŝƚĞĚ;ƚŚĞΗWĂƌĞŶƚΗͿŝƐĂĐŽŵƉĂŶLJŝŶĐŽƌƉŽƌĂƚĞĚŝŶEĞǁĞĂůĂŶĚƵŶĚĞƌƚŚĞŽŵƉĂŶŝĞƐĐƚϭεεϯĂŶĚůŝƐƚĞĚ
ŽŶƚŚĞEyDĂŝŶŽĂƌĚĂŶĚƚŚĞƵƐƚƌĂůŝĂŶ^ĞĐƵƌŝƚŝĞƐdžĐŚĂŶŐĞ͘dŚĞŽŵƉĂŶLJŝƐĂƌĞƉŽƌƚŝŶŐĞŶƚŝƚLJƵŶĚĞƌWĂƌƚϳŽĨ
ƚŚĞ&ŝŶĂŶĐŝĂůDĂƌŬĞƚƐŽŶĚƵĐƚĐƚϮϬϭϯ͘
dŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ'ƌŽƵƉŚĂǀĞďĞĞŶƉƌĞƉĂƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚEĞǁĞĂůĂŶĚ'ĞŶĞƌĂůůLJ
ĐĐĞƉƚĞĚĐĐŽƵŶƚŝŶŐWƌĂĐƚŝĐĞ;E'WͿ͕ĂŶĚĨŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨE'W͕ƚŚĞ'ƌŽƵƉŝƐĂĨŽƌͲƉƌŽĨŝƚĞŶƚŝƚLJ͘dŚĞLJ
ĐŽŵƉůLJǁŝƚŚE/^ϯκ/ŶƚĞƌŝŵ&ŝŶĂŶĐŝĂůZĞƉŽƌƚŝŶŐĂŶĚ/^ϯκ/ŶƚĞƌŝŵ&ŝŶĂŶĐŝĂůZĞƉŽƌƚŝŶŐĂŶĚĐŽŶƐĞƋƵĞŶƚůLJ
ŝŶĐůƵĚĞĂůŽǁĞƌůĞǀĞůŽĨĚŝƐĐůŽƐƵƌĞƚŚĂŶŝƐƌĞƋƵŝƌĞĚĨŽƌĂŶŶƵĂůĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
dŚĞŝŶƚĞƌŝŵĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƐŚŽƵůĚďĞƌĞĂĚŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚƚŚĞĂŶŶƵĂůĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞLJĞĂƌ
ĞŶĚĞĚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͕ǁŚŝĐŚŚĂǀĞďĞĞŶƉƌĞƉĂƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/ŶƚĞƌŶĂƚŝŽŶĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚŝŶŐ
^ƚĂŶĚĂƌĚƐĂŶĚEĞǁĞĂůĂŶĚƋƵŝǀĂůĞŶƚƐƚŽ/ŶƚĞƌŶĂƚŝŽŶĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘
dŚĞ'ƌŽƵƉΖƐWĂƉƵĂEĞǁ'ƵŝŶĞĂKƉĞƌĂƚŝŽŶƐ;ΗĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶΗͿĐŽŶƐƚŝƚƵƚĞƐĂĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶǁŚŝĐŚ
ǁĂƐĚŝƐƉŽƐĞĚŝŶƚŚĞƉĞƌŝŽĚĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϯ͘WƌŽĨŝƚŽƌůŽƐƐŝŶĨŽƌŵĂƚŝŽŶĨŽƌƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚŝƐƉƌĞƉĂƌĞĚŽŶĂ
ĐŽŶƚŝŶƵŝŶŐďĂƐŝƐǁŝƚŚŶĞƚƌĞƐƵůƚƐĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶƉƌĞƐĞŶƚĞĚƐĞƉĂƌĂƚĞůLJ͘WƌŽĨŝƚŽƌůŽƐƐŝŶĨŽƌŵĂƚŝŽŶĨŽƌ
ϮϬϮϮŚĂƐďĞĞŶƌĞͲƉƌĞƐĞŶƚĞĚĨŽƌĐŽŵƉĂƌĂďŝůŝƚLJ͘ZĞĨĞƌƚŽŶŽƚĞϳ͘ϮĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘
tŚĞƌĞŶĞĐĞƐƐĂƌLJ͕ĐŽŵƉĂƌĂƚŝǀĞŝŶĨŽƌŵĂƚŝŽŶŚĂƐďĞĞŶƌĞĐůĂƐƐŝĨŝĞĚĨŽƌĐŽŶƐŝƐƚĞŶĐLJǁŝƚŚƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚ
ƉƌĞƐĞŶƚĂƚŝŽŶ͘
6
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
ϭ͘ϯ
^ĞŐŵĞŶƚĂůƌĞƉŽƌƚŝŶŐ
Ă͘ KƉĞƌĂƚŝŶŐƐĞŐŵĞŶƚƐ
ď͘ &ŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ
ΨƚŚŽƵƐĂŶĚƐ
EĞǁĞĂůĂŶĚ WĂĐŝĨŝĐ/ƐůĂŶĚƐKƚŚĞƌdŽƚĂů
,ĂůĨLJĞĂƌĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϯ
'ƌŽƐƐǁƌŝƚƚĞŶƉƌĞŵŝƵŵϮϭϳ͕κϳϯ Ϯκ͕κϯεͲ
Ϯκϭ͕εϭϮ
'ƌŽƐƐĞĂƌŶĞĚƉƌĞŵŝƵŵϮϬκ͕Ϭεϭ Ϯρ͕ςεΘͲϮϮε͕ϳΘε
KƵƚǁĂƌĚƐƌĞŝŶƐƵƌĂŶĐĞĞdžƉĞŶƐĞ;Ϯϳ͕ϳϭϳͿ ;ϳ͕ρςΘͿͲ;ϯρ͕ϮΘρͿ
EĞƚĞĂƌŶĞĚƉƌĞŵŝƵŵϭϳς͕ϯϳκ ϭΘ͕ϭϯϬͲϭεκ͕ρϬκ
EĞƚĐůĂŝŵƐĞdžƉĞŶƐĞ;ϭϯρ͕ρϬϬͿ ;ϭϳ͕ϯρϮͿ ρϯς;ϭρϮ͕ϯϭςͿ
EĞƚĐŽŵŵŝƐƐŝŽŶĞdžƉĞŶƐĞ;κ͕ϯϬςͿ ;ςκεͿͲ;κ͕ερρͿ
hŶĚĞƌǁƌŝƚŝŶŐĞdžƉĞŶƐĞ;κρ͕ΘϭϭͿ ;Θ͕ϮϭΘͿͲ;ρκ͕ϬϮεͿ
hŶĚĞƌǁƌŝƚŝŶŐ;ůŽƐƐͿͬƉƌŽĨŝƚ;ε͕ϮκϯͿ ;Θ͕ϬΘεͿ ρϯς;ϭς͕ϳεςͿ
EĞƚŝŶǀĞƐƚŵĞŶƚŝŶĐŽŵĞς͕ϬϮϳ ϮρΘͲς͕ϮΘρ
KƚŚĞƌϭ͕ϭϬϭ ϭ͕ϭϭϬͲϮ͕Ϯϭϭ
;>ŽƐƐͿͬƉƌŽĨŝƚďĞĨŽƌĞƚĂdžĂƚŝŽŶĨƌŽŵĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ;Ϯ͕ϭϭρͿ ;ς͕ϳϮϭͿ ρϯς;Θ͕ϯϬϬͿ
;>ŽƐƐͿͬƉƌŽĨŝƚĂĨƚĞƌƚĂdžĂƚŝŽŶĨƌŽŵĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ ;ϯ͕ϭϮςͿ ;κ͕ΘρϮͿ ρϯς;ϳ͕κκϮͿ
,ĂůĨLJĞĂƌĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϮ;ZĞͲƉƌĞƐĞŶƚĞĚͿ
'ƌŽƐƐǁƌŝƚƚĞŶƉƌĞŵŝƵŵϭΘε͕ρςε ϮϮ͕ϭΘςͲ
Ϯϭϭ͕ϳρρ
'ƌŽƐƐĞĂƌŶĞĚƉƌĞŵŝƵŵϭϳε͕ϳςε ϮϮ͕εκςͲϮϬϮ͕ϳϭρ
KƵƚǁĂƌĚƐƌĞŝŶƐƵƌĂŶĐĞĞdžƉĞŶƐĞ;Ϯκ͕ϯϳϳͿ ;ϳ͕ϯϯςͿͲ;ϯϭ͕ϳϭϯͿ
EĞƚĞĂƌŶĞĚƉƌĞŵŝƵŵϭρρ͕ϯεϮ ϭρ͕ςϭϬͲϭϳϭ͕ϬϬϮ
EĞƚĐůĂŝŵƐĞdžƉĞŶƐĞ;ϭϬϯ͕κϭϮͿ ;ϭϮ͕ΘϯρͿες;ϭϭς͕ϭρϭͿ
EĞƚĐŽŵŵŝƐƐŝŽŶĞdžƉĞŶƐĞ;ϯ͕εϮϬͿ ;ϳϳςͿͲ;κ͕ςεςͿ
hŶĚĞƌǁƌŝƚŝŶŐĞdžƉĞŶƐĞ;ϯε͕κρϯͿ ;ρ͕ϮΘεͿͲ;κκ͕ϳκϮͿ
hŶĚĞƌǁƌŝƚŝŶŐƉƌŽĨŝƚͬ;ůŽƐƐͿΘ͕ςϬϳ ;ϯ͕ϮεϬͿεςρ͕κϭϯ
EĞƚŝŶǀĞƐƚŵĞŶƚŝŶĐŽŵĞ;εεϯͿρρͲ;εϯΘͿ
KƚŚĞƌϮϮϳϳϬͲϮεϳ
WƌŽĨŝƚͬ;ůŽƐƐͿďĞĨŽƌĞƚĂdžĂƚŝŽŶĨƌŽŵĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ ϳ͕Θκϭ ;ϯ͕ϭςρͿεςκ͕ϳϳϮ
WƌŽĨŝƚͬ;ůŽƐƐͿĂĨƚĞƌƚĂdžĂƚŝŽŶĨƌŽŵĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐκ͕ρεϯ ;Ϯ͕ϮΘϯͿεςϮ͕κϬς
Đ͘
&ŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶŽĨĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ
ΨƚŚŽƵƐĂŶĚƐ
EĞǁĞĂůĂŶĚ WĂĐŝĨŝĐ/ƐůĂŶĚƐKƚŚĞƌdŽƚĂů
ĚĚŝƚŝŽŶƐƚŽŶŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐϯϭDĂƌĐŚϮϬϮϯϭκ͕ϭΘε κ͕ϮΘςͲϭΘ͕κϳρ
ĚĚŝƚŝŽŶƐƚŽŶŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮϮε͕ρκϳ ΘΘϯ ;κ͕ϯϮϳͿϮς͕ϭϬϯ
dŽƚĂůĂƐƐĞƚƐϯϭDĂƌĐŚϮϬϮϯεΘε͕κρϭ Θϳ͕ρϮρ ;ϭκ͕ϯϭρͿϭ͕ϬςϮ͕ςςϭ
dŽƚĂůĂƐƐĞƚƐϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮϳϮϯ͕ΘϬρ ϳκ͕ρϯε ;ϭκ͕εκϮͿϳΘϯ͕κϬϮ
dŽƚĂůůŝĂďŝůŝƚŝĞƐϯϭDĂƌĐŚϮϬϮϯϳϬϮ͕ςεΘ ςρ͕ΘκϬ ;ϭ͕ρϬϬͿϳςϳ͕Ϭϯϳ
dŽƚĂůůŝĂďŝůŝƚŝĞƐϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮκϮς͕εϯϬ ρϭ͕κςϮ ;εςρͿκϳϳ͕κϮϳ
dŽǁĞƌŽƉĞƌĂƚĞƐŝŶƚǁŽŐĞŽŐƌĂƉŚŝĐĂůƐĞŐŵĞŶƚƐ͕EĞǁĞĂůĂŶĚĂŶĚƚŚĞWĂĐŝĨŝĐƌĞŐŝŽŶ͘EĞǁĞĂůĂŶĚĐŽŵƉƌŝƐĞƐ
ƚŚĞŐĞŶĞƌĂůŝŶƐƵƌĂŶĐĞďƵƐŝŶĞƐƐƵŶĚĞƌǁƌŝƚƚĞŶŝŶEĞǁĞĂůĂŶĚ͘WĂĐŝĨŝĐ/ƐůĂŶĚƐĐŽŵƉƌŝƐĞƐƚŚĞŐĞŶĞƌĂůŝŶƐƵƌĂŶĐĞ
ďƵƐŝŶĞƐƐƵŶĚĞƌǁƌŝƚƚĞŶŝŶƚŚĞWĂĐŝĨŝĐďLJdŽǁĞƌƐƵďƐŝĚŝĂƌŝĞƐĂŶĚďƌĂŶĐŚŽƉĞƌĂƚŝŽŶƐ͘KƚŚĞƌĐŽŶƚĂŝŶƐďĂůĂŶĐĞƐ
ƌĞůĂƚŝŶŐƚŽdŽǁĞƌ^ĞƌǀŝĐĞƐ>ŝŵŝƚĞĚ;ŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞƐĞŶƚŝƚLJͿ͕ĂŶĚĂůƐŽŝŶĐůƵĚĞƐŝŶƚĞƌĐŽŵƉĂŶLJĞůŝŵŝŶĂƚŝŽŶƐ
ĂŶĚŐƌŽƵƉĚŝǀĞƌƐŝĨŝĐĂƚŝŽŶďĞŶĞĨŝƚƐ͘dŚĞ'ƌŽƵƉĚŽĞƐŶŽƚĚĞƌŝǀĞƌĞǀĞŶƵĞĨƌŽŵĂŶLJŝŶĚŝǀŝĚƵĂůŽƌĞŶƚŝƚLJƚŚĂƚ
ƌĞƉƌĞƐĞŶƚƐϭϬйŽƌŵŽƌĞŽĨƚŚĞ'ƌŽƵƉΖƐƚŽƚĂůƌĞǀĞŶƵĞ͘
ĚĚŝƚŝŽŶƐƚŽŶŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐŝŶĐůƵĚĞĂĚĚŝƚŝŽŶƐƚŽƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ͕ƌŝŐŚƚŽĨƵƐĞĂƐƐĞƚƐ͕ŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ
ĂŶĚŝŶǀĞƐƚŵĞŶƚƐŝŶƐƵďƐŝĚŝĂƌŝĞƐ͘
dŚĞWĂĐŝĨŝĐ/ƐůĂŶĚƐŽƉĞƌĂƚŝŶŐƐĞŐŵĞŶƚĞdžĐůƵĚĞƐƚŚĞĚŝƐƉŽƐĂůŐƌŽƵƉĂŶĚĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐŚĞůĚĨŽƌƐĂůĞ͘dŚĞ
ƉƌŝŽƌLJĞĂƌĐŽŵƉĂƌĂƚŝǀĞƐŚĂǀĞďĞĞŶƌĞͲƉƌĞƐĞŶƚĞĚĂĐĐŽƌĚŝŶŐůLJ͘/ŶƚĞƌĐŽŵƉĂŶLJƚƌĂŶƐĂĐƚŝŽŶƐǁŝƚŚƚŚĞĚŝƐƉŽƐĂů
ŐƌŽƵƉĂƌĞĞůŝŵŝŶĂƚĞĚǁŝƚŚŝŶĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ͕ƌĞĨĞƌŶŽƚĞϳ͘Ϯ͘
7DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
Ϯ hŶĚĞƌǁƌŝƚŝŶŐĂĐƚŝǀŝƚŝĞƐ
Ϯ͘ϭ
EĞƚĐůĂŝŵƐĞdžƉĞŶƐĞ
ϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
'ƌŽƐƐĐůĂŝŵƐĞdžƉĞŶƐĞκϭϭ͕κΘϯ ϭϭϯ͕ρϯϳ ϮκΘ ϳ͕ϬϬϭ κϭϭ͕ϳϯϭ ϭϮϬ͕ρϯΘ
ZĞŝŶƐƵƌĂŶĐĞĂŶĚŽƚŚĞƌƌĞĐŽǀĞƌŝĞƐƌĞǀĞŶƵĞ ;ϮςϬ͕ρΘκͿ ;ρερͿ ϭ͕ϭςε ;ϯ͕ϳεϮͿ ;Ϯρε͕κϭρͿ ;κ͕ϯΘϳͿ
EĞƚĐůĂŝŵƐĞdžƉĞŶƐĞϭρϬ͕ΘεεϭϭϮ͕εκϮϭ͕κϭϳϯ͕ϮϬεϭρϮ͕ϯϭςϭϭς͕ϭρϭ
Ϯ͘Ϯ
EĞƚŽƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐ
ϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮ
ĞŶƚƌĂůĞƐƚŝŵĂƚĞŽĨĨƵƚƵƌĞĐĂƐŚĨůŽǁƐϯκε͕ϳϯς Θε͕κϬκ ϭς͕ϭρΘ ϭΘ͕Ϭρς ϯςρ͕Θεκ ϭϬϳ͕κςϬ
ůĂŝŵƐŚĂŶĚůŝŶŐĞdžƉĞŶƐĞϭΘ͕ρΘΘ ρ͕ρςκ ϳεε ϳϳϮ ϭε͕ϯΘϳ ς͕ϯϯς
ZŝƐŬŵĂƌŐŝŶρ͕ερρ ρ͕Ϭρϭ ρ͕ϭϮϬ ρ͕ςΘκ ϭϭ͕Ϭϳρ ϭϬ͕ϳϯρ
'ƌŽƐƐŽƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐϯϳκ͕ϮϳεϭϬϬ͕ϬϭεϮϮ͕ϬϳϳϮκ͕ρϭϮϯες͕ϯρςϭϮκ͕ρϯϭ
ZĞŝŶƐƵƌĂŶĐĞƌĞĐŽǀĞƌŝĞƐ;ϮςϬ͕ςεϯͿ ;ϭϬ͕ϮεϯͿ ;Ϯ͕κϬκͿ ;ϯ͕ϳΘϳͿ ;Ϯςϯ͕ϬεϳͿ ;ϭκ͕ϬΘϬͿ
EĞƚŽƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐϭϭϯ͕ρΘςΘε͕ϳϮςϭε͕ςϳϯϮϬ͕ϳϮρϭϯϯ͕ϮρεϭϭϬ͕κρϭ
dŚĞĐŽƐƚŽĨƌĞŝŶƐƚĂƚŝŶŐƌĞŝŶƐƵƌĂŶĐĞĐŽǀĞƌĂŐĞĂĨƚĞƌƚŚĞƐĞĞǀĞŶƚƐŝƐƌĞĐŽƌĚĞĚǁŝƚŚŝŶŽƵƚǁĂƌĚƌĞŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵƐ͕
ǁŚĞƌĞŝƚǁŝůůďĞĞdžƉĞŶƐĞĚŽǀĞƌƚŚĞƌĞŵĂŝŶĚĞƌŽĨƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚŝŶŐŽŶϯϬ^ĞƉƚĞŵďĞƌϮϬϮϯ͘
dŽǁĞƌŚĂƐƌĞĐĞŝǀĞĚĂƌŽƵŶĚϯ͕ϯρϬĐůĂŝŵƐĨƌŽŵLJĐůŽŶĞ'ĂďƌŝĞůůĞŝŶ&ĞďƌƵĂƌLJϮϬϮϯ͕ĂŶĚĞƐƚŝŵĂƚĞƐƚŚĞƵůƚŝŵĂƚĞ
ŐƌŽƐƐĐŽƐƚŽĨƚŚŝƐĞǀĞŶƚƚŽďĞǁŝƚŚŝŶƚŚĞƌĂŶŐĞŽĨΨρρŵƚŽΨϳρŵ͘dŚĞŶĞƚŝŵƉĂĐƚƚŽdŽǁĞƌŝƐůŝŵŝƚĞĚƚŽΨϭϭ͘Θϳρŵ͕
ǁŝƚŚĂŵŽƵŶƚƐĂďŽǀĞƚŚŝƐƌĞĐŽǀĞƌĂďůĞĨƌŽŵdŽǁĞƌ͛ƐƌĞŝŶƐƵƌĞƌƐ͘
dŽǁĞƌŚĂƐƌĞĐĞŝǀĞĚϮρϬĐůĂŝŵƐĨŽƌLJĐůŽŶĞƐ:ƵĚLJĂŶĚ<ĞǀŝŶŝŶsĂŶƵĂƚƵŝŶDĂƌĐŚϮϬϮϯ͘dŽǁĞƌĞƐƚŝŵĂƚĞƐƚŚĞŶĞƚ
ĨŝŶĂŶĐŝĂůŝŵƉĂĐƚĨŽƌƚŚĞƐĞĐLJĐůŽŶĞƐ͕ŶĞƚŽĨƉƌŽƉŽƌƚŝŽŶĂůƌĞŝŶƐƵƌĂŶĐĞƌĞĐŽǀĞƌŝĞƐ͕ƚŽďĞΨϭϬŵ͘
ĂŶƚĞƌďƵƌLJĞĂƌƚŚƋƵĂŬĞdŽƚĂů
EĞƚĐůĂŝŵƐĞdžƉĞŶƐĞŝŶĐůƵĚĞƐƚŚĞŝŵƉĂĐƚŽĨƚŚƌĞĞůĂƌŐĞĞǀĞŶƚƐƚŚĂƚŽĐĐƵƌƌĞĚĚƵƌŝŶŐƚŚĞŚĂůĨLJĞĂƌƚŽϯϭDĂƌĐŚϮϬϮϯ͘
dŽǁĞƌŚĂƐƌĞĐĞŝǀĞĚĂƌŽƵŶĚρ͕ρρϬĐůĂŝŵƐĨŽƌƚŚĞƵĐŬůĂŶĚĂŶĚhƉƉĞƌEŽƌƚŚ/ƐůĂŶĚtĞĂƚŚĞƌĞǀĞŶƚƐŝŶ:ĂŶƵĂƌLJϮϬϮϯ͘
dŚĞƵůƚŝŵĂƚĞŐƌŽƐƐĐŽƐƚĨŽƌƚŚŝƐĞǀĞŶƚŝƐĞƐƚŝŵĂƚĞĚƚŽďĞďĞƚǁĞĞŶΨϭερŵƚŽΨϮϮρŵ͘dŚĞŶĞƚŝŵƉĂĐƚƚŽdŽǁĞƌŝƐ
ůŝŵŝƚĞĚƚŽΨϭϭ͘Θϳρŵ͕ǁŝƚŚĂŵŽƵŶƚƐĂďŽǀĞƚŚŝƐƌĞĐŽǀĞƌĂďůĞĨƌŽŵdŽǁĞƌ͛ƐƌĞŝŶƐƵƌĞƌƐ͘
dŚŝƐƐĞĐƚŝŽŶƉƌŽǀŝĚĞƐŝŶĨŽƌŵĂƚŝŽŶŽŶdŽǁĞƌΖƐƵŶĚĞƌǁƌŝƚŝŶŐĂĐƚŝǀŝƚŝĞƐ͘
dŽǁĞƌĐŽůůĞĐƚƐƉƌĞŵŝƵŵƐĨƌŽŵĐƵƐƚŽŵĞƌƐŝŶĞdžĐŚĂŶŐĞĨŽƌƉƌŽǀŝĚŝŶŐŝŶƐƵƌĂŶĐĞĐŽǀĞƌĂŐĞ͘dŚĞƐĞƉƌĞŵŝƵŵƐĂƌĞ
ƌĞĐŽŐŶŝƐĞĚĂƐƌĞǀĞŶƵĞǁŚĞŶƚŚĞLJĂƌĞĞĂƌŶĞĚďLJdŽǁĞƌ͕ǁŝƚŚĂůŝĂďŝůŝƚLJĨŽƌƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵƐƌĞĐŽŐŶŝƐĞĚŽŶƚŚĞ
ďĂůĂŶĐĞƐŚĞĞƚ͘
tŚĞŶĐƵƐƚŽŵĞƌƐƐƵĨĨĞƌĂůŽƐƐƚŚĂƚŝƐĐŽǀĞƌĞĚďLJƚŚĞŝƌƉŽůŝĐLJ͕dŽǁĞƌǁŝůůŵĂŬĞƉĂLJŵĞŶƚƐƚŽĐƵƐƚŽŵĞƌƐŽƌƐƵƉƉůŝĞƌƐ͕
ǁŚŝĐŚŝƚƌĞĐŽŐŶŝƐĞƐĂƐĐůĂŝŵƐĞdžƉĞŶƐĞƐ͘dŽĞŶƐƵƌĞƚŚĂƚdŽǁĞƌ͛ƐŽďůŝŐĂƚŝŽŶƐƚŽĐƵƐƚŽŵĞƌƐĂƌĞƉƌŽƉĞƌůLJƌĞĐŽƌĚĞĚ
ǁŝƚŚŝŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕dŽǁĞƌƌĞĐŽŐŶŝƐĞƐƉƌŽǀŝƐŝŽŶƐĨŽƌŽƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐ͘
dŽŵĂŶĂŐĞdŽǁĞƌ͛ƐƌŝƐŬĂŶĚŽƉƚŝŵŝƐĞŝƚƐƌĞƚƵƌŶƐ͕dŽǁĞƌƌĞŝŶƐƵƌĞƐƐŽŵĞŽĨŝƚƐĞdžƉŽƐƵƌĞǁŝƚŚƌĞŝŶƐƵƌĂŶĐĞ
ĐŽŵƉĂŶŝĞƐ͘dŚĞƉƌĞŵŝƵŵƐƉĂŝĚƚŽƌĞŝŶƐƵƌĞƌƐĂƌĞƌĞĐŽŐŶŝƐĞĚĂƐĂŶĞdžƉĞŶƐĞ͕ǁŚŝůĞƌĞĐŽǀĞƌŝĞƐĨƌŽŵƌĞŝŶƐƵƌĞƌƐĂƌĞ
ƌĞĐŽŐŶŝƐĞĚĂƐƌĞǀĞŶƵĞ͘
ΨƚŚŽƵƐĂŶĚƐ
džĐ͘ĂŶƚĞƌďƵƌLJ
ĞĂƌƚŚƋƵĂŬĞ
ΨƚŚŽƵƐĂŶĚƐ
džĐ͘ĂŶƚĞƌďƵƌLJ
ĞĂƌƚŚƋƵĂŬĞ
ĂŶƚĞƌďƵƌLJĞĂƌƚŚƋƵĂŬĞdŽƚĂů
8
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
Ϯ͘ϯ
hŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚLJ
йϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮ
κΘ͘εйκρ͘ρй
ϭϭ͘ϭйϭϭ͘Ϯй
Ϯ͘κ ZĞĐĞŝǀĂďůĞƐ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮ
'ƌŽƐƐƉƌĞŵŝƵŵƌĞĐĞŝǀĂďůĞƐϮϭς͕ϮϮϳ ϮϬϬ͕ϳϭρ
WƌŽǀŝƐŝŽŶĨŽƌĞdžƉĞĐƚĞĚĨƵƚƵƌĞƉƌĞŵŝƵŵĐĂŶĐĞůůĂƚŝŽŶƐ;ςϭςͿ;ςρϭͿ
WƌĞŵŝƵŵƌĞĐĞŝǀĂďůĞƐϮϭρ͕ςϭϭϮϬϬ͕Ϭςκ
ZĞŝŶƐƵƌĂŶĐĞƌĞĐŽǀĞƌŝĞƐΎϮςΘ͕Ϯεκ ϭρ͕Θκϳ
ĂŶƚĞƌďƵƌLJĞĂƌƚŚƋƵĂŬĞƌĞŝŶƐƵƌĂŶĐĞƌĞĐŽǀĞƌŝĞƐϮ͕ϳκϬ ϯ͕ϳΘϳ
KƚŚĞƌƌĞĐŽǀĞƌŝĞƐϭϯ͕ρϮε ϭϭ͕ϯϳΘ
ZĞŝŶƐƵƌĂŶĐĞĂŶĚŽƚŚĞƌƌĞĐŽǀĞƌŝĞƐϮΘκ͕ρςϯϯϭ͕ϬϭϮ
&ŝŶĂŶĐĞůĞĂƐĞƌĞĐĞŝǀĂďůĞƐϭ͕ϯϳρ Ϯ͕ϯϳρ
WƌĞƉĂLJŵĞŶƚƐρ͕εϬΘ κ͕κϭϭ
KƚŚĞƌƌĞĐĞŝǀĂďůĞƐϮ͕κΘϳ Ϯ͕κϬϭ
ZĞĐĞŝǀĂďůĞĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶΎΎͲ ϭ͕ΘϮς
ZĞĐĞŝǀĂďůĞƐρϬε͕εκκϮκϮ͕ϬΘε
ΎZĞĨĞƌŶŽƚĞϮ͘ϮĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝů͘
ΎΎZĞĨĞƌŶŽƚĞϳ͘ϮĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝů͘
ZŝƐŬŵĂƌŐŝŶĂƐĂйŽĨŶĞƚĐůĂŝŵƐ
ĞŶƚƌĂůĞƐƚŝŵĂƚĞŶĞƚĐůĂŝŵƐĂƐĂйŽĨƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚLJ
ĚĞƋƵĂĐLJŽĨƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚLJ
dŽǁĞƌƵŶĚĞƌƚĂŬĞƐĂůŝĂďŝůŝƚLJĂĚĞƋƵĂĐLJƚĞƐƚ;Η>dΗͿƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌƚŚĞƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚLJŝƐ
ƐƵĨĨŝĐŝĞŶƚƚŽƉĂLJĨƵƚƵƌĞĐůĂŝŵƐŶĞƚŽĨƌĞŝŶƐƵƌĂŶĐĞƌĞĐŽǀĞƌŝĞƐ͘
/ĨƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨĞdžƉĞĐƚĞĚĨƵƚƵƌĞŶĞƚĐĂƐŚĨůŽǁƐƌĞůĂƚŝŶŐƚŽĐƵƌƌĞŶƚŝŶƐƵƌĂŶĐĞĐŽŶƚƌĂĐƚƐ͕ƉůƵƐĂƌŝƐŬŵĂƌŐŝŶ͕
ĞdžĐĞĞĚƐƚŚĞƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚŝĞƐůĞƐƐƌĞůĂƚĞĚĚĞĨĞƌƌĞĚĂĐƋƵŝƐŝƚŝŽŶĐŽƐƚƐĂŶĚŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ͕ƚŚĞŶƚŚĞ
ƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚLJŝƐĚĞĞŵĞĚĚĞĨŝĐŝĞŶƚ͘dŚŝƐĚĞĨŝĐŝĞŶĐLJŝƐŝŵŵĞĚŝĂƚĞůLJƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĨŝƚŽƌůŽƐƐ͘/Ŷ
ƌĞĐŽŐŶŝƐŝŶŐƚŚĞĚĞĨŝĐŝĞŶĐLJ͕dŽǁĞƌǁŝůůĨŝƌƐƚǁƌŝƚĞĚŽǁŶĂŶLJƌĞůĂƚĞĚĚĞĨĞƌƌĞĚĂĐƋƵŝƐŝƚŝŽŶĐŽƐƚƐŽƌŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ
dŚĞƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚŝĞƐĂƐĂƚϯϭDĂƌĐŚϮϬϮϯǁĞƌĞƐƵĨĨŝĐŝĞŶƚĂĐƌŽƐƐĂůůďƵƐŝŶĞƐƐĞƐĨŽƌƚŚĞ'ƌŽƵƉ͘dŚĞ
ƚŽƚĂůĚĞĨŝĐŝƚƌĞĐŽŐŶŝƐĞĚĨŽƌƚŚĞ'ƌŽƵƉĂƐĂĐŚĂƌŐĞĂŐĂŝŶƐƚĚĞĨĞƌƌĞĚĂĐƋƵŝƐŝƚŝŽŶĐŽƐƚǁĂƐŶŝů;ϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͗
ŶŝůͿ͘
9
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
ϯ /ŶǀĞƐƚŵĞŶƚƐ
ϯ͘ϭ
/ŶǀĞƐƚŵĞŶƚŝŶĐŽŵĞ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
/ŶƚĞƌĞƐƚŝŶĐŽŵĞρ͕ρεϳϮ͕εϬκ
EĞƚƌĞĂůŝƐĞĚůŽƐƐ;ς͕ϭεςͿ;ϭ͕ΘςκͿ
EĞƚƵŶƌĞĂůŝƐĞĚŐĂŝŶͬ;ůŽƐƐͿϳ͕ϬκϮ;ϭ͕ϳεΘͿ
/ŶǀĞƐƚŵĞŶƚŝŶĐŽŵĞͬ;ůŽƐƐĞƐͿς͕κκϯ;ϳρΘͿ
ϯ͘Ϯ/ŶǀĞƐƚŵĞŶƚƐ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮ
&ŝdžĞĚŝŶƚĞƌĞƐƚŝŶǀĞƐƚŵĞŶƚƐϮκΘ͕ϬεΘ ϮρΘ͕ςϬϬ
WƌŽƉĞƌƚLJŝŶǀĞƐƚŵĞŶƚϯκϯκ
/ŶǀĞƐƚŵĞŶƚƐϮκΘ͕ϭϯϮϮρΘ͕ςϯκ
ϯ͘ϯ &ĂŝƌǀĂůƵĞŚŝĞƌĂƌĐŚLJ
ΨƚŚŽƵƐĂŶĚƐ>ĞǀĞůϭ>ĞǀĞůϮ>ĞǀĞůϯdŽƚĂů
ƐĂƚϯϭDĂƌĐŚϮϬϮϯ
&ŝdžĞĚŝŶƚĞƌĞƐƚŝŶǀĞƐƚŵĞŶƚƐͲϮκΘ͕ϬεΘͲ ϮκΘ͕ϬεΘ
WƌŽƉĞƌƚLJŝŶǀĞƐƚŵĞŶƚͲϯκͲϯκ
/ŶǀĞƐƚŵĞŶƚƐͲϮκΘ͕ϭϯϮͲ ϮκΘ͕ϭϯϮ
ƐĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ
&ŝdžĞĚŝŶƚĞƌĞƐƚŝŶǀĞƐƚŵĞŶƚƐͲϮρΘ͕ςϬϬͲ ϮρΘ͕ςϬϬ
WƌŽƉĞƌƚLJŝŶǀĞƐƚŵĞŶƚͲϯκͲϯκ
/ŶǀĞƐƚŵĞŶƚƐͲϮρΘ͕ςϯκͲ ϮρΘ͕ςϯκ
dŽǁĞƌĚĞƐŝŐŶĂƚĞƐŝƚƐŝŶǀĞƐƚŵĞŶƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞŝŶĂĐĐŽƌĚĂŶĐĞ
ǁŝƚŚŝƚƐdƌĞĂƐƵƌLJƉŽůŝĐLJ͘
EĞƚƌĞĂůŝƐĞĚůŽƐƐĞƐƌĞůĂƚĞƚŽƚŚĞŵĂƚƵƌŝƚLJŽĨĨŝdžĞĚŝŶƚĞƌĞƐƚďŽŶĚƐ͕ǁŝƚŚŝŶƚĞƌĞƐƚĐŽƵƉŽŶƌĂƚĞƐŚŝŐŚĞƌƚŚĂŶŵĂƌŬĞƚ
ƌĂƚĞƐ͕ƉƵƌĐŚĂƐĞĚĂƚŚŝŐŚĞƌƚŚĂŶĨĂĐĞǀĂůƵĞ͘dŚĞĐŽƌƌĞƐƉŽŶĚŝŶŐŚŝŐŚĞƌŝŶƚĞƌĞƐƚƌĞĐĞŝǀĞĚŝƐƌĞĨůĞĐƚĞĚŝŶƚŚĞŝŶƚĞƌĞƐƚ
ŝŶĐŽŵĞĂŵŽƵŶƚ͘
dŽǁĞƌŝŶǀĞƐƚƐĨƵŶĚƐĐŽůůĞĐƚĞĚĂƐƉƌĞŵŝƵŵƐĂŶĚƉƌŽǀŝĚĞĚďLJƐŚĂƌĞŚŽůĚĞƌƐƚŽĞŶƐƵƌĞŝƚĐĂŶŵĞĞƚŝƚƐŽďůŝŐĂƚŝŽŶƐƚŽ
ƉĂLJĐůĂŝŵƐĂŶĚĞdžƉĞŶƐĞƐĂŶĚƚŽŐĞŶĞƌĂƚĞĂƌĞƚƵƌŶƚŽƐƵƉƉŽƌƚŝƚƐƉƌŽĨŝƚĂďŝůŝƚLJ͘dŽǁĞƌŚĂƐĂůŽǁŝŶǀĞƐƚŵĞŶƚƌŝƐŬ
ƚŽůĞƌĂŶĐĞĂŶĚƚŚĞƌĞĨŽƌĞƚŚĞŵĂũŽƌŝƚLJŽĨŝƚƐŝŶǀĞƐƚŵĞŶƚƐĂƌĞŝŶŝŶǀĞƐƚŵĞŶƚŐƌĂĚĞƐƵƉƌĂŶĂƚŝŽŶĂůĂŶĚďĂŶŬďŽŶĚƐ͘
10
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
κ ZŝƐŬDĂŶĂŐĞŵĞŶƚ
κ͘ϭ ĂƉŝƚĂůŵĂŶĂŐĞŵĞŶƚƌŝƐŬ
ZĞŐƵůĂƚŽƌLJƐŽůǀĞŶĐLJĐĂƉŝƚĂů
ΨƚŚŽƵƐĂŶĚƐ
WĂƌĞŶƚ 'ƌŽƵƉWĂƌĞŶƚ 'ƌŽƵƉ
ĐƚƵĂůƐŽůǀĞŶĐLJĐĂƉŝƚĂůϭϮς͕ϭϯςϭρς͕ϬϬκϭϯς͕κϮϯϭϳϭ͕ςκϳ
DŝŶŝŵƵŵƐŽůǀĞŶĐLJĐĂƉŝƚĂůϭϬϭ͕ϬεϮϭϬΘ͕ϭϳεςς͕ρϯϬϳε͕ϬϭΘ
^ŽůǀĞŶĐLJŵĂƌŐŝŶΎϮρ͕Ϭκκκϳ͕ΘϮρςε͕ΘεϯεϮ͕ςϮε
^ŽůǀĞŶĐLJƌĂƚŝŽϭϮρйϭκκйϮϬρйϮϭϳй
ϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮ
ΎdŽǁĞƌŝƐƌĞƋƵŝƌĞĚƚŽŵĂŝŶƚĂŝŶĂƐŽůǀĞŶĐLJŵĂƌŐŝŶŽĨĂƚůĞĂƐƚΨϭρŵ;ϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͗ΨϭρŵͿ͕ĚƵĞƚŽĂůŝĐĞŶƐĞ
ĐŽŶĚŝƚŝŽŶŝƐƐƵĞĚďLJƚŚĞZE͘
dŽǁĞƌŝƐĞdžƉŽƐĞĚƚŽŵƵůƚŝƉůĞƌŝƐŬƐĂƐŝƚǁŽƌŬƐƚŽƐĞƚƚŚŝŶŐƐƌŝŐŚƚĨŽƌŝƚƐĐƵƐƚŽŵĞƌƐĂŶĚƚŚĞŝƌĐŽŵŵƵŶŝƚŝĞƐ
ǁŚŝůƐƚŵĂdžŝŵŝƐŝŶŐƌĞƚƵƌŶƐĨŽƌŝƚƐƐŚĂƌĞŚŽůĚĞƌƐ͘ǀĞƌLJŽŶĞĂĐƌŽƐƐƚŚĞŽƌŐĂŶŝƐĂƚŝŽŶŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌĞŶƐƵƌŝŶŐ
ƚŚĂƚdŽǁĞƌΖƐƌŝƐŬƐĂƌĞŵĂŶĂŐĞĚĂŶĚĐŽŶƚƌŽůůĞĚŽŶĂĚĂŝůLJďĂƐŝƐ͘
dŽǁĞƌǁŝůůĂƉƉůLJƚŚĞŶĞǁZE͛ƐŶĞǁŝŶƚĞƌŝŵƐŽůǀĞŶĐLJƐƚĂŶĚĂƌĚ;/^^ͿĨƌŽŵϭKĐƚŽďĞƌϮϬϮϯ͘dŚĞ/^^ǁŝůů
ŝŵƉŽƐĞƐŽŵĞĐŚĂŶŐĞƐƚŚĂƚǁŝůůŝŵƉĂĐƚƐŽůǀĞŶĐLJŵĂƌŐŝŶƐ͘tŚŝůĞdŽǁĞƌŝƐƐƚŝůůĂƐƐĞƐƐŝŶŐƚŚĞ/^^ŝŶŝƚƐĨŝŶĂů
ĨŽƌŵ͕ƐƵĨĨŝĐŝĞŶƚĂŶĂůLJƐŝƐŚĂƐďĞĞŶĐŽŵƉůĞƚĞĚƚŽĐŽŶĨŝƌŵƚŚĂƚdŽǁĞƌǁŝůůŵĂŝŶƚĂŝŶĂŶĂƉƉƌŽƉƌŝĂƚĞĐĂƉŝƚĂů
ƉŽƐŝƚŝŽŶƵŶĚĞƌƚŚĞ/^^͘
11
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
ρĂƉŝƚĂů^ƚƌƵĐƚƵƌĞ
ρ͘ϭ
ŽŶƚƌŝďƵƚĞĚĞƋƵŝƚLJ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮ
KƉĞŶŝŶŐďĂůĂŶĐĞκςϬ͕ϭεϭκεϮ͕κϮκ
ZĞƚƵƌŶŽĨƐŚĂƌĞĐĂƉŝƚĂůƚŽƐŚĂƌĞŚŽůĚĞƌƐΎͲ;ϯϬ͕ςϯκͿ
WƵƌĐŚĂƐĞŽĨŶŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚƐΎΎͲ;ϭ͕ρεεͿ
dŽƚĂůĐŽŶƚƌŝďƵƚĞĚĞƋƵŝƚLJκςϬ͕ϭεϭκςϬ͕ϭεϭ
ZĞƉƌĞƐĞŶƚĞĚďLJ͗
KƉĞŶŝŶŐďĂůĂŶĐĞϯϳε͕κΘϯ͕εΘϳ κϮϭ͕ςκϳ͕ϮρΘ
ĂŶĐĞůůĂƚŝŽŶŽĨƐŚĂƌĞƐŽŶƌĞƚƵƌŶŽĨĐĂƉŝƚĂůͲ ;κϮ͕ϭςϯ͕ϮϳϭͿ
dŽƚĂůƐŚĂƌĞƐŽŶŝƐƐƵĞϯϳε͕κΘϯ͕εΘϳϯϳε͕κΘϯ͕εΘϳ
ρ͘ϮĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ
ϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
;>ŽƐƐͿͬƉƌŽĨŝƚĨƌŽŵĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐĂƚƚƌŝďƵƚĂďůĞƚŽƐŚĂƌĞŚŽůĚĞƌƐ;ΨƚŚŽƵƐĂŶĚƐͿ;ϳ͕κκϮͿϮ͕ϯρκ
WƌŽĨŝƚĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶĂƚƚƌŝďƵƚĂďůĞƚŽƐŚĂƌĞŚŽůĚĞƌƐ;ΨƚŚŽƵƐĂŶĚƐͿϮ͕ϯκϬρϳς
tĞŝŐŚƚĞĚĂǀĞƌĂŐĞ ŶƵŵďĞƌ ŽĨ ŽƌĚŝŶĂƌLJ ƐŚĂƌĞƐ ĨŽƌ ďĂƐŝĐ ĂŶĚ ĚŝůƵƚĞĚ ĞĂƌŶŝŶŐƐƉĞƌ
ƐŚĂƌĞ;ŶƵŵďĞƌŽĨƐŚĂƌĞƐͿ
ϯϳε͕κΘϯ͕εΘϳκϭς͕ϯϭΘ͕εϯϯ
ĂƐŝĐĂŶĚĚŝůƵƚĞĚĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ;ĐĞŶƚƐͿĨŽƌĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ;ϭ͘εςͿϬ͘ρϳ
ĂƐŝĐĂŶĚĚŝůƵƚĞĚĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ;ĐĞŶƚƐͿ;ϭ͘ϯκͿϬ͘ϳϬ
dŚŝƐƐĞĐƚŝŽŶƉƌŽǀŝĚĞƐŝŶĨŽƌŵĂƚŝŽŶĂďŽƵƚŚŽǁdŽǁĞƌĨŝŶĂŶĐĞƐŝƚƐŽƉĞƌĂƚŝŽŶƐƚŽƉƌŽǀŝĚĞĨŝŶĂŶĐŝĂůƐĞĐƵƌŝƚLJƚŽŝƚƐ
ĐƵƐƚŽŵĞƌƐ͕ĞŵƉůŽLJĞĞƐĂŶĚŽƚŚĞƌƐƚĂŬĞŚŽůĚĞƌƐ͘
ΎKŶεDĂƌĐŚϮϬϮϮƚŚĞ'ƌŽƵƉĐŽŵƉůĞƚĞĚŝƚƐŽƌĚŝŶĂƌLJƐŚĂƌĞďƵLJͲďĂĐŬĨŽƌĂĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨΨϯϬ͘ςŵ;ŝŶĐůƵĚŝŶŐƚƌĂŶƐĂĐƚŝŽŶĐŽƐƚƐͿ͘dŚŝƐ
ƌĞƐƵůƚĞĚŝŶκϮ͘ϮŵƐŚĂƌĞƐďĞŝŶŐĐĂŶĐĞůůĞĚĚƵƌŝŶŐƚŚĞLJĞĂƌĞŶĚĞĚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͘
ΎΎKŶϭκKĐƚŽďĞƌϮϬϮϭdŽǁĞƌ>ŝŵŝƚĞĚƌĞĂĐŚĞĚĂŶĂŐƌĞĞŵĞŶƚƚŽŝŶĐƌĞĂƐĞŝƚƐƐŚĂƌĞŚŽůĚŝŶŐŝŶEĂƚŝŽŶĂůWĂĐŝĨŝĐ/ŶƐƵƌĂŶĐĞ>ŝŵŝƚĞĚĨƌŽŵ
ϳϭ͘ϯεйƚŽεϯ͘ΘΘйĨŽƌĂĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨΨϯ͘κŵ͘dŽǁĞƌ>ŝŵŝƚĞĚƐƵďƐĞƋƵĞŶƚůLJĐŽŵŵĞŶĐĞĚĂƉƌŽĐĞƐƐƚŽĂĐƋƵŝƌĞƚŚĞƌĞŵĂŝŶŝŶŐς͘ϭϮй
ƐŚĂƌĞŚŽůĚŝŶŐǁŚŝĐŚĐŽŵƉůĞƚĞĚŽŶϭϳĞĐĞŵďĞƌϮϬϮϭĨŽƌĂĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨΨϬ͘εŵ͘
dŚĞďĂƐŝĐĂŶĚĚŝůƵƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌƐŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐƐŚŽǁŶĂďŽǀĞĂƌĞƵƐĞĚĨŽƌĐĂůĐƵůĂƚŝŶŐĂůůĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞŵĞĂƐƵƌĞƐ
ŝŶĐůƵĚŝŶŐƚŚŽƐĞĨŽƌƉƌŽĨŝƚĂĨƚĞƌƚĂdžĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶ;ŶŽƚĞϳ͘ϮͿ͘
12
DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
ς KƚŚĞƌďĂůĂŶĐĞƐŚĞĞƚŝƚĞŵƐ
ς͘ϭ /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ
ƐĂƚϯϭDĂƌĐŚϮϬϮϯ
ΨƚŚŽƵƐĂŶĚƐ
'ŽŽĚǁŝůů^ŽĨƚǁĂƌĞ
ƵƐƚŽŵĞƌ
ZĞůĂƚŝŽŶƐŚŝƉƐ
dŽƚĂů
ŽŵƉŽƐŝƚŝŽŶ͗
ŽƐƚ
ϭϳ͕ϳκκ Θϯ͕Ϯκϳ κϬ͕ςκρϭκϭ͕ςϯς
ĐĐƵŵƵůĂƚĞĚĂŵŽƌƚŝƐĂƚŝŽŶͲ ;Ϯϳ͕ςρκͿ ;ϭκ͕ϭεεͿ;κϭ͕ΘρϯͿ
/ŶƚĂŶŐŝďůĞƐƐĞƚƐ
ϭϳ͕ϳκκ ρρ͕ρεϯ Ϯς͕κκς εε͕ϳΘϯ
ZĞĐŽŶĐŝůŝĂƚŝŽŶ͗
KƉĞŶŝŶŐďĂůĂŶĐĞϭϳ͕ϳκκ ρϯ͕κρΘ Ϯϯ͕κρϭ εκ͕ςρϯ
ŵŽƌƚŝƐĂƚŝŽŶͲ ;ρ͕ϯϳϯͿ ;Ϯ͕εϬρͿ ;Θ͕ϮϳΘͿ
ĚĚŝƚŝŽŶƐͲΘ͕ϭςϯρ͕εϬϬ ϭκ͕Ϭςϯ
dƌĂŶƐĨĞƌƐƚŽƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚͲ;ςρρͿͲ;ςρρͿ
ůŽƐŝŶŐĂůĂŶĐĞϭϳ͕ϳκκ ρρ͕ρεϯ Ϯς͕κκς εε͕ϳΘϯ
ƐĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ
ŽŵƉŽƐŝƚŝŽŶ͗
ŽƐƚΎ
ϭϳ͕ϳκκ ϳε͕Ϯρε ϯκ͕ϳκρ ϭϯϭ͕ϳκΘ
ĐĐƵŵƵůĂƚĞĚĂŵŽƌƚŝƐĂƚŝŽŶΎͲ ;Ϯρ͕ΘϬϭͿ ;ϭϭ͕ϮεκͿ ;ϯϳ͕ϬερͿ
/ŶƚĂŶŐŝďůĞƐƐĞƚƐ
ϭϳ͕ϳκκ ρϯ͕κρΘ Ϯϯ͕κρϭ εκ͕ςρϯ
ZĞĐŽŶĐŝůŝĂƚŝŽŶ͗
KƉĞŶŝŶŐďĂůĂŶĐĞϭϳ͕ϳκκ κΘ͕ρϮϳ ϮϮ͕ϯϮϭ ΘΘ͕ρεϮ
ŵŽƌƚŝƐĂƚŝŽŶͲ ;ε͕ϳςκͿ ;κ͕ερεͿ ;ϭκ͕ϳϮϯͿ
ĚĚŝƚŝŽŶƐͲ ϭς͕εϯκς͕ϬΘε Ϯϯ͕ϬϮϯ
ŝƐƉŽƐĂůƐͲ;ϭΘκͿͲ;ϭΘκͿ
dƌĂŶƐĨĞƌƐƚŽƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚͲ ;Ϯ͕ϬρρͿͲ ;Ϯ͕ϬρρͿ
ůŽƐŝŶŐĂůĂŶĐĞϭϳ͕ϳκκ ρϯ͕κρΘ Ϯϯ͕κρϭ εκ͕ςρϯ
/ŶƚŚĞLJĞĂƌĞŶĚĞĚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͕ĂĚĚŝƚŝŽŶƐƚŽƐŽĨƚǁĂƌĞĂƐƐĞƚƐƉƌŝŵĂƌŝůLJƌĞůĂƚĞĚƚŽĐŽŶƚŝŶƵĞĚŝŶǀĞƐƚŵĞŶƚŝŶ
dŽǁĞƌ͛ƐĐŽƌĞŝŶƐƵƌĂŶĐĞƉůĂƚĨŽƌŵ͕ŝŶĐůƵĚŝŶŐƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨDLJdŽǁĞƌĂŶĚĚĂƚĂĂŶĂůLJƚŝĐƐƚŽŽůƐ͕ǁŚŝůĞ
ĂĚĚŝƚŝŽŶƐƚŽĐƵƐƚŽŵĞƌƌĞůĂƚŝŽŶƐŚŝƉƐƌĞůĂƚĞĚƚŽƚŚĞĂĐƋƵŝƐŝƚŝŽŶŽĨtĞƐƚƉĂĐ͛ƐĂŶĚd^ĂŶŬ͛ƐƌŝŐŚƚƐĂŶĚ
ŽďůŝŐĂƚŝŽŶƐƌĞůĂƚŝŶŐƚŽƐĞƌǀŝĐŝŶŐĂƉŽƌƚĨŽůŝŽŽĨŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐƵŶĚĞƌǁƌŝƚƚĞŶďLJdŽǁĞƌ͘
dŚŝƐƐĞĐƚŝŽŶƉƌŽǀŝĚĞƐŝŶĨŽƌŵĂƚŝŽŶĂďŽƵƚĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐŶŽƚŝŶĐůƵĚĞĚĞůƐĞǁŚĞƌĞ͘
ƵƌŝŶŐƚŚĞŚĂůĨLJĞĂƌĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϯ͕ĂĚĚŝƚŝŽŶƐƚŽƐŽĨƚǁĂƌĞĂƐƐĞƚƐƉƌŝŵĂƌŝůLJƌĞůĂƚĞĚƚŽĐŽŶƚŝŶƵĞĚ
ŝŶǀĞƐƚŵĞŶƚŝŶdŽǁĞƌ͛ƐĐŽƌĞŝŶƐƵƌĂŶĐĞƉůĂƚĨŽƌŵ͕ǁŚŝůĞĂĚĚŝƚŝŽŶƐƚŽĐƵƐƚŽŵĞƌƌĞůĂƚŝŽŶƐŚŝƉƐƌĞůĂƚĞĚƚŽƚŚĞ
ĂĐƋƵŝƐŝƚŝŽŶŽĨ<ŝǁŝďĂŶŬΖƐƌŝŐŚƚƐĂŶĚŽďůŝŐĂƚŝŽŶƐƌĞůĂƚŝŶŐƚŽƐĞƌǀŝĐŝŶŐĂƉŽƌƚĨŽůŝŽŽĨŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐ
ƵŶĚĞƌǁƌŝƚƚĞŶďLJdŽǁĞƌ͘
ΎƵƌŝŶŐƚŚĞLJĞĂƌ͕ĂŶĚĨŽůůŽǁŝŶŐƚŚĞĚĞĐŽŵŵŝƐƐŝŽŶŝŶŐŽĨƐĞǀĞƌĂůůĞŐĂĐLJ/dƐLJƐƚĞŵƐ͕ĂƌĞǀŝĞǁŽĨŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚnjĞƌŽ
ŬǀĂůƵĞƐǁĂƐĐŽŵƉůĞƚĞĚ͘ƐĂĐŽŶƐĞƋƵĞŶĐĞ͕ŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚĂƚŽƚĂůĐŽƐƚĂŶĚĂĐĐƵŵƵůĂƚĞĚĂŵŽƌƚŝƐĂƚŝŽŶŽĨΨϯϮ͘Θŵ
ǁĞƌĞǁƌŝƚƚĞŶŽĨĨĂƐƚŚĞLJĂƌĞŶŽůŽŶŐĞƌŝŶƵƐĞ͘ƐƚŚĞĂƐƐĞƚƐŚĂĚnjĞƌŽŬǀĂůƵĞƐ͕ƚŚĞƌĞǁĂƐŶŽŝŵƉĂĐƚŽŶƉƌŽĨŝƚŽƌůŽƐƐ
ĨƌŽŵƚŚĞƐĞǁƌŝƚĞͲŽĨĨƐ͘
13DĂƌĐŚďĂůĂŶĐĞƐƵŶĂƵĚŝƚĞĚ͕^ĞƉƚĞŵďĞƌĂƵĚŝƚĞĚ

dŽǁĞƌ>ŝŵŝƚĞĚ
ϳ
ϳ͘ϭ
ŽŵƉŽƐŝƚŝŽŶŽĨĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϬͲ^ĞƉͲϮϮ
ϯϭͲDĂƌͲϮϮ
ĂƐŚĂƚďĂŶŬ
ςϬ͕ρϮϮ ρκ͕κϮϮ ϳκ͕ρκρ
ĞƉŽƐŝƚƐĂƚĐĂůů
ϯς͕ϬϳϮ ϯϬ͕ϬΘϬ Ϯς͕ςκς
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ
ες͕ρεκΘκ͕ρϬϮ ϭϬϭ͕ϭεϭ
ΨƚŚŽƵƐĂŶĚƐϯϬͲ^ĞƉͲϮϮ
ĂƐŚĂƚďĂŶŬΘκ͕ρϬϮ
ĂƐŚĂƚďĂŶŬĂƚƚƌŝďƵƚĂďůĞƚŽĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶϳ͘Ϯϳ͕ϳες
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ
εϮ͕ϮεΘ
ZĞĐŽŶĐŝůŝĂƚŝŽŶŽĨƉƌŽĨŝƚĨŽƌƚŚĞŚĂůĨLJĞĂƌƚŽĐĂƐŚĨůŽǁƐĨƌŽŵŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
;>ŽƐƐͿͬƉƌŽĨŝƚĂĨƚĞƌƚĂdžĂƚŝŽŶĨŽƌƚŚĞŚĂůĨLJĞĂƌ;ρ͕ϭϬϮͿϮ͕εΘϮ
ĚũƵƐƚĞĚĨŽƌŶŽŶͲĐĂƐŚŝƚĞŵƐ
ĞƉƌĞĐŝĂƚŝŽŶŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚεΘΘ ϭ͕ϬϮϳ
ĞƉƌĞĐŝĂƚŝŽŶĂŶĚĚŝƐƉŽƐĂůƐŽĨƌŝŐŚƚͲŽĨͲƵƐĞĂƐƐĞƚƐϮ͕ϬΘϯ ϭ͕ϮϮϮ
ŵŽƌƚŝƐĂƚŝŽŶŽĨŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐς͘ϭΘ͕ϮϳΘ ϳ͕Ϭϳϭ
&ŝŶĂŶĐŝŶŐĐŽƐƚƐκςρκςϬ
&ĂŝƌǀĂůƵĞ;ŐĂŝŶƐͿͬůŽƐƐĞƐŽŶĨŝŶĂŶĐŝĂůĂƐƐĞƚƐ;ΘκςͿ ϯ͕ςςϮ
ŚĂŶŐĞŝŶĚĞĨĞƌƌĞĚƚĂdž;Ϯ͕ΘΘΘͿΘρϯ
'ĂŝŶŽŶĚŝƐƉŽƐĂůŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ;ϭ͕ϮϯεͿ;ΘϮͿ
'ĂŝŶŽŶĚŝƐƉŽƐĂůŽĨĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶϳ͘Ϯ;Ϯ͕ϮϭϮͿͲ
ŚĂŶŐĞŝŶƌĞĐĞŝǀĂďůĞƐ;ϮϳϬ͕ϭϬςͿ ;ϭϮ͕κΘεͿ
ŚĂŶŐĞŝŶƉĂLJĂďůĞƐϮΘϳ͕ϳϬς ϭε͕ϮϯΘ
ŚĂŶŐĞŝŶƚĂdžĂƚŝŽŶϭ͕Ϭϯε ϭ͕ϭϭϯ
ϭΘ͕ϭςςϮρ͕Ϭρϳ
EĞƚĐĂƐŚŝŶĨůŽǁĨƌŽŵŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐ
KƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ
dŚŝƐƐĞĐƚŝŽŶŝŶĐůƵĚĞƐĂĚĚŝƚŝŽŶĂůĚŝƐĐůŽƐƵƌĞƐǁŚŝĐŚĂƌĞƌĞƋƵŝƌĞĚďLJĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶŐƐƚĂŶĚĂƌĚƐ͘
EŽƚĞƐƚŽƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐĂƐŚĨůŽǁƐ
ĚũƵƐƚĞĚĨŽƌŵŽǀĞŵĞŶƚƐŝŶǁŽƌŬŝŶŐĐĂƉŝƚĂů
ĚũƵƐƚĞĚĨŽƌŝŶǀĞƐƚŝŶŐĂĐƚŝǀŝƚŝĞƐ
&ŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚĂƐŚ&ůŽǁ^ƚĂƚĞŵĞŶƚ͕ĐĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚĞŚĂůĨLJĞĂƌ
ĐŽŵƉƌŝƐĞŽĨƚŚĞĨŽůůŽǁŝŶŐ͗
dŽǁĞƌŽƉĞƌĂƚĞƐŝŶĐŽƵŶƚƌŝĞƐŝŶƚŚĞWĂĐŝĨŝĐ/ƐůĂŶĚƐƚŚĂƚĂƌĞƐƵďũĞĐƚƚŽĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĞƐƚƌŝĐƚŝŽŶƐ͕ǁŚŝĐŚŵĂLJƌĞƐƚƌŝĐƚ
ƚŚĞĂďŝůŝƚLJĨŽƌŝŵŵĞĚŝĂƚĞƵƐĞŽĨĐĂƐŚďLJƚŚĞƉĂƌĞŶƚŽƌŽƚŚĞƌƐƵďƐŝĚŝĂƌŝĞƐ͘ƐĂƚϯϭDĂƌĐŚϮϬϮϯ͕ƚŚŝƐŝŶĐůƵĚĞĚEε͘ρŵ
ŚĞůĚŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂĨŽůůŽǁŝŶŐƚŚĞƐĂůĞŽĨƚŚĞĚŝƐƉŽƐĂůŐƌŽƵƉ͘dŚŝƐĐĂƐŚŝƐŶŽƚĐƵƌƌĞŶƚůLJĂǀĂŝůĂďůĞĨŽƌƵƐĞďLJƚŚĞ
'ƌŽƵƉ͘
14
March balances unaudited, September audited

dŽǁĞƌ>ŝŵŝƚĞĚ
ϳ͘Ϯ ŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶĂŶĚƐĂůĞŽĨƚŚĞ^ƵǀĂďƵŝůĚŝŶŐ
ĞƚĂŝůƐŽĨƚŚĞƐĂůĞŽĨƚŚĞƐƵďƐŝĚŝĂƌLJ
ΨƚŚŽƵƐĂŶĚƐϮΘͲKĐƚͲϮϮ
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐϳ͕ϬϳϬ
/ŶǀĞƐƚŵĞŶƚƐϮ͕ϭϮϬ
ZĞĐĞŝǀĂďůĞƐϮ͕ςϳϬ
ƵƌƌĞŶƚƚĂdžĂƐƐĞƚƐϯϳε
ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐϭϯϬ
ĞĨĞƌƌĞĚŝŶƐƵƌĂŶĐĞĐŽƐƚƐϭ͕ϮεϬ
ZŝŐŚƚŽĨƵƐĞĂƐƐĞƚƐκρϮ
WƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚϯς
dŽƚĂůĂƐƐĞƚƐĂƚƚŚĞĚĂƚĞŽĨĚŝƐƉŽƐĂůϭκ͕ϭκϳ
WĂLJĂďůĞƐϮρκ
hŶĞĂƌŶĞĚƉƌĞŵŝƵŵƐκ͕κεϬ
KƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐϭ͕ΘϳΘ
>ĞĂƐĞůŝĂďŝůŝƚŝĞƐκεϯ
WƌŽǀŝƐŝŽŶƐρϯ
dŽƚĂůůŝĂďŝůŝƚŝĞƐĂƚƚŚĞĚĂƚĞŽĨĚŝƐƉŽƐĂůϳ͕ϭςΘ
EĞƚĂƐƐĞƚƐĂƚƚŚĞĚĂƚĞŽĨĚŝƐƉŽƐĂůς͕εϳε
ĂƐŚĐŽŶƐŝĚĞƌĂƚŝŽŶƌĞĐĞŝǀĞĚŶĞƚŽĨĚŝƐƉŽƐĂůĐŽƐƚƐε͕ϳϯρ
'ĂŝŶŽŶƐĂůĞďĞĨŽƌĞƌĞĐůĂƐƐŝĨŝĐĂƚŝŽŶŽĨĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƚƌĂŶƐůĂƚŝŽŶƌĞƐĞƌǀĞϮ͕ϳρς
ZĞĐůĂƐƐŝĨŝĐĂƚŝŽŶŽĨĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƚƌĂŶƐůĂƚŝŽŶƌĞƐĞƌǀĞ;ρκκͿ
'ĂŝŶŽŶƐĂůĞϮ͕ϮϭϮ
ĞƚĂŝůƐŽĨƚŚĞƐĂůĞŽĨƚŚĞ^ƵǀĂďƵŝůĚŝŶŐ;ďĞĨŽƌĞƚĂdžĂƚŝŽŶͿ
ΨƚŚŽƵƐĂŶĚƐϯϭͲ:ĂŶͲϮϯ
ĂƐŚĐŽŶƐŝĚĞƌĂƚŝŽŶƌĞĐĞŝǀĞĚŶĞƚŽĨĚŝƐƉŽƐĂůĐŽƐƚƐρ͕ϳκς
EĞƚŬǀĂůƵĞĂƚƚŚĞĚĂƚĞŽĨĚŝƐƉŽƐĂůκ͕ρρΘ
'ĂŝŶŽŶƐĂůĞŽĨƚŚĞ^ƵǀĂďƵŝůĚŝŶŐΎϭ͕ϭΘΘ
ZĞǀĂůƵĂƚŝŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐϭ͕ϳκϳ
Ύ/ŶĐůƵĚĞĚŝŶKƚŚĞƌŝŶĐŽŵĞǁŝƚŚŝŶŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘
KŶϮΘKĐƚŽďĞƌϮϬϮϮdŽǁĞƌĐŽŵƉůĞƚĞĚƚŚĞƐĂůĞŽĨĂůůŽĨŝƚƐƐŚĂƌĞƐŝŶŝƚƐWĂƉƵĂEĞǁ'ƵŝŶĞĂƐƵďƐŝĚŝĂƌLJƚŽůƉŚĂ
/ŶƐƵƌĂŶĐĞ>ŝŵŝƚĞĚĨŽƌĂƐĂůĞƉƌŝĐĞŽĨW'<ϮϮŵŝůůŝŽŶ͘dŚĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞƐƵďƐŝĚŝĂƌLJŚĂǀĞďĞĞŶƌĞƉŽƌƚĞĚŝŶƚŚĞ
ĐƵƌƌĞŶƚƉĞƌŝŽĚ͕ĂŶĚĂƐĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͕ĂƐĂĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶ͘&ŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶŽŶƚŚŝƐ
ĚŝƐƉŽƐĂůŝƐƐĞƚŽƵƚďĞůŽǁ͘
KŶϯϭ:ĂŶƵĂƌLJϮϬϮϯ͕dŽǁĞƌĐŽŵƉůĞƚĞĚƚŚĞƐĂůĞŽĨŝƚƐďƵŝůĚŝŶŐŝŶ^ƵǀĂ͕ĨŽƌ&:Θ͘ϮŵŝůůŝŽŶƉůƵƐsd;ŐƌŽƐƐŽĨ
ĐŽƐƚƐƌĞůĂƚŝŶŐƚŽƚŚĞƐĂůĞͿ͘
15
March balances unaudited, September audited

dŽǁĞƌ>ŝŵŝƚĞĚ
ϳ͘ϮŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶĂŶĚƐĂůĞŽĨƚŚĞ^ƵǀĂďƵŝůĚŝŶŐ;ĐŽŶƚŝŶƵĞĚͿ
ƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞ
ΨƚŚŽƵƐĂŶĚƐ
ϯϬͲ^ĞƉͲϮϮ
ƐƐĞƚƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞ
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐϳ͕ϳες
/ŶǀĞƐƚŵĞŶƚƐϯ͕ρΘϬ
ZĞĐĞŝǀĂďůĞƐϮ͕ρςρ
ƵƌƌĞŶƚƚĂdžĂƐƐĞƚƐϯϭρ
ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐϭκκ
ĞĨĞƌƌĞĚŝŶƐƵƌĂŶĐĞĐŽƐƚƐϭ͕ϯϯρ
ZŝŐŚƚŽĨƵƐĞĂƐƐĞƚƐκϳε
WƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚΎκ͕ρεϳ
dŽƚĂůĂƐƐĞƚƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞϮϬ͕Θϭϭ
>ŝĂďŝůŝƚŝĞƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞ
WĂLJĂďůĞƐΎΎϭ͕εςρ
hŶĞĂƌŶĞĚƉƌĞŵŝƵŵƐκ͕ϳκρ
KƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐϭ͕εΘϭ
>ĞĂƐĞůŝĂďŝůŝƚŝĞƐρϭε
WƌŽǀŝƐŝŽŶƐκΘ
dŽƚĂůůŝĂďŝůŝƚŝĞƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞε͕ϮρΘ
EĞƚĂƐƐĞƚƐĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞϭϭ͕ρρϯ
dŚĞĐƵŵƵůĂƚŝǀĞĐƵƌƌĞŶĐLJƚƌĂŶƐůĂƚŝŽŶůŽƐƐĞƐƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞŝŶƌĞůĂƚŝŽŶƚŽƚŚĞ
ĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶĂƐĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮǁĞƌĞΨϮ͘ϳŵ͘
ΎΎƐĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͕dŽǁĞƌWE'ŽǁĞĚŽƚŚĞƌŵĞŵďĞƌƐŽĨƚŚĞdŽǁĞƌ'ƌŽƵƉŽĨΨϭ͘Θŵ͘dŚĞůŝĂďŝůŝƚŝĞƐĨƌŽŵ
ĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶĚŝƐĐůŽƐĞĚĂďŽǀĞĂƌĞƐƚĂƚĞĚǁŝƚŚŽƵƚĂĚũƵƐƚŵĞŶƚĨŽƌƚŚĞƐĞŝŶƚĞƌĐŽŵƉĂŶLJƚƌĂŶƐĂĐƚŝŽŶƐ͘
dŚĞĨŽůůŽǁŝŶŐĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐǁĞƌĞƌĞĐůĂƐƐŝĨŝĞĚĂƐŚĞůĚĨŽƌƐĂůĞŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶĂƐ
ĂƚϯϬ^ĞƉƚĞŵďĞƌϮϬϮϮ͗
ΎWƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĚŝƐĐůŽƐĞĚĂďŽǀĞŝŶĐůƵĚĞƐƚŚĞ^ƵǀĂďƵŝůĚŝŶŐĐĂƌƌLJŝŶŐǀĂůƵĞŽĨΨκ͘ρŵ͘
16
March balances unaudited, September audited

dŽǁĞƌ>ŝŵŝƚĞĚ
ϳ͘ϮŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶĂŶĚƐĂůĞŽĨƚŚĞ^ƵǀĂďƵŝůĚŝŶŐ;ĐŽŶƚŝŶƵĞĚͿ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
'ƌŽƐƐǁƌŝƚƚĞŶƉƌĞŵŝƵŵρΘΘκ͕ϯϯκ
hŶĞĂƌŶĞĚƉƌĞŵŝƵŵŵŽǀĞŵĞŶƚϭςϯϮΘ
'ƌŽƐƐĞĂƌŶĞĚƉƌĞŵŝƵŵϳρϭ κ͕ϯςϮ
KƵƚǁĂƌĚƌĞŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵ;ϮςϳͿ ;ϭ͕ϳϮϯͿ
DŽǀĞŵĞŶƚŝŶĚĞĨĞƌƌĞĚƌĞŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵ;ϭΘͿςκ
KƵƚǁĂƌĚƌĞŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵĞdžƉĞŶƐĞΎΎ;ϮΘρͿ ;ϭ͕ςρεͿ
EĞƚĞĂƌŶĞĚƉƌĞŵŝƵŵκςς Ϯ͕ϳϬϯ
ůĂŝŵƐĞdžƉĞŶƐĞ;ϮρͿ;ςρρͿ
>ĞƐƐ͗ZĞŝŶƐƵƌĂŶĐĞĂŶĚŽƚŚĞƌƌĞĐŽǀĞƌŝĞƐƌĞǀĞŶƵĞ;ϭͿϮϭ
EĞƚĐůĂŝŵƐĞdžƉĞŶƐĞ;ϮςͿ;ςϯκͿ
'ƌŽƐƐĐŽŵŵŝƐƐŝŽŶĞdžƉĞŶƐĞ;ϯϯͿ;ϭκεͿ
ŽŵŵŝƐƐŝŽŶƌĞǀĞŶƵĞϮϳϭκϯ
EĞƚĐŽŵŵŝƐƐŝŽŶĞdžƉĞŶƐĞ;ςͿ;ςͿ
hŶĚĞƌǁƌŝƚŝŶŐĞdžƉĞŶƐĞΎΎ;ϮϯεͿ ;ϭ͕ϮϳϯͿ
hŶĚĞƌǁƌŝƚŝŶŐƉƌŽĨŝƚϭερ ϳεϬ
/ŶǀĞƐƚŵĞŶƚŝŶĐŽŵĞρϮϯ
KƚŚĞƌŝŶĐŽŵĞϭϭς
&ŝŶĂŶĐŝŶŐĂŶĚŽƚŚĞƌĐŽƐƚƐ;ϭͿ;ςͿ
WƌŽĨŝƚďĞĨŽƌĞƚĂdžĂƚŝŽŶϮϬϬ ΘϮϯ
dĂdžĞdžƉĞŶƐĞ;ϳϮͿ;ϮκϳͿ
WƌŽĨŝƚĂĨƚĞƌƚĂdžĂƚŝŽŶĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶϭϮΘρϳς
'ĂŝŶŽŶƐĂůĞŽĨƚŚĞƐƵďƐŝĚŝĂƌLJϮ͕ϮϭϮͲ
WƌŽĨŝƚĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶϮ͕ϯκϬρϳς
ĂƐŚĨůŽǁƐĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶ
ΨƚŚŽƵƐĂŶĚƐϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
EĞƚĐĂƐŚŽƵƚĨůŽǁĨƌŽŵŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐ;Ϯ͕ϬϮεͿ ;Ϯ͕ϭϮρͿ
EĞƚĐĂƐŚŝŶĨůŽǁͬ;ŽƵƚĨůŽǁͿĨƌŽŵŝŶǀĞƐƚŝŶŐĂĐƚŝǀŝƚŝĞƐΎϭ͕κςκ;κϮͿ
EĞƚĐĂƐŚŽƵƚĨůŽǁĨƌŽŵĨŝŶĂŶĐŝŶŐĂĐƚŝǀŝƚŝĞƐ;ϭϳͿ;ΘρͿ
EĞƚŵŽǀĞŵĞŶƚŝŶĐĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĨƌŽŵĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶ;ρΘϮͿ ;Ϯ͕ϮρϮͿ
ĨĨĞĐƚŽĨĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĂƚĞĐŚĂŶŐĞƐ;ϭκκͿ;εϬͿ
ΎdžĐůƵĚĞƐƉƌŽĐĞĞĚƐĂŶĚĐĂƐŚĚŝƐƉŽƐĞĚ͘
ĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ
ϯϭͲDĂƌͲϮϯϯϭͲDĂƌͲϮϮ
ĂƐŝĐĂŶĚĚŝůƵƚĞĚĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ;ĐĞŶƚƐͿĨŽƌĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶϬ͘ςϮϬ͘ϭκ
ΎΎdŽǁĞƌWE'ƉĂŝĚĨĞĞƐƚŽŽƚŚĞƌŵĞŵďĞƌƐŽĨƚŚĞdŽǁĞƌ'ƌŽƵƉŽĨΨϬ͘ϭŵĚƵƌŝŶŐƚŚĞŚĂůĨLJĞĂƌĞŶĚĞĚϯϭDĂƌĐŚϮϬϮϯ;ϮϬϮϮ͗ΨϬ͘ςŵͿ͕
ƌĞůĂƚŝŶŐƚŽƚŚĞƉƌŽǀŝƐŝŽŶŽƌƌĞŝŶƐƵƌĂŶĐĞ͕ŵĂŶĂŐĞŵĞŶƚĂŶĚŽƚŚĞƌƐĞƌǀŝĐĞƐ͘dŚĞƐĞĂŵŽƵŶƚƐĂƌĞŝŶĐůƵĚĞĚǁŝƚŚŝŶƚŚĞƌĞŝŶƐƵƌĂŶĐĞ
ƉƌĞŵŝƵŵĞdžƉĞŶƐĞĂŶĚƵŶĚĞƌǁƌŝƚŝŶŐĞdžƉĞŶƐĞůŝŶĞƐĂďŽǀĞ͕ĂŶĚĂƌĞƚŚĞŶĞůŝŵŝŶĂƚĞĚǁŝƚŚŝŶĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ͘
dŚĞĐƵƌƌĞŶĐLJƚƌĂŶƐůĂƚŝŽŶĚŝĨĨĞƌĞŶĐĞƐƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞĚƵƌŝŶŐƚŚĞŚĂůĨLJĞĂƌĞŶĚŝŶŐϯϭDĂƌĐŚ
ϮϬϮϯŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĚŝƐĐŽŶƚŝŶƵĞĚŽƉĞƌĂƚŝŽŶǁĞƌĞΨϬ͘ϭκŵ͘
17
March balances unaudited, September audited

dŽǁĞƌ>ŝŵŝƚĞĚ
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ϳ͘ρ ^ƵďƐĞƋƵĞŶƚĞǀĞŶƚƐ
>ĂƌŐĞĞǀĞŶƚ;ŶŽŶͲĂĚũƵƐƚŝŶŐĞǀĞŶƚͿ
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ŝŶƐƵƌĂŶĐĞ͘
dŽǁĞƌ>ŝŵŝƚĞĚŚĂƐŚĂĚŽŶĞůĂƌŐĞĞǀĞŶƚƐƵďƐĞƋƵĞŶƚƚŽƚŚĞďĂůĂŶĐĞĚĂƚĞ͕ĂŶƵĐŬůĂŶĚƌĂŝŶƐƚŽƌŵŽŶεƚŚŽĨDĂLJ͘
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18
March balances unaudited, September audited

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
Independent auditor’s review report
To the shareholders of Tower Limited
Report on the consolidated interim financial statements
Our conclusion
We have reviewed the consolidated interim financial statements of Tower Limited (the Company) and
its subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 March 2023, and
the consolidated statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the six month period (half year) ended on that date,
and significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that these
accompanying consolidated interim financial statements of the Group do not present fairly, in all
material respects, the financial position of the Group as at 31 March 2023, and its financial
performance and cash flows for the half year then ended, in accordance with International Accounting
Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International
Accounting Standard 34 Interim Financial Reporting(NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for
the review of the consolidated interim financial statementssection of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. Other than in our capacity as auditor
and providers of assurance services over solvency and regulatory returns we have no relationship
with, or interests in, the Group. Certain partners and employees of our firm may deal with the Group
on normal terms within the ordinary course of trading activities of the Group. These services and this
matter have not impaired our independence as auditor of the Group.
Responsibilities of the directors for the consolidated interim financial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair
presentation of these consolidated interim financial statements in accordance with IAS 34 and NZ IAS
34 and for such internal control as the Directors determine is necessary to enable the preparation and
fair presentation of the consolidated interim financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the consolidated interim financial statements
Our responsibility is to express a conclusion on the consolidated interim financial statements based on
our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our
attention that causes us to believe that the consolidated interim financial statements, taken as a whole,
are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34.
A review of consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a
limited assurance engagement. We perform procedures, primarily consisting of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other
review procedures. The procedures performed in a review are substantially less than those performed
in an audit conducted in accordance with International Standards on Auditing (New Zealand) and
International Standards on Auditing and consequently does not enable us to obtain assurance that we
might identify in an audit. Accordingly, we do not express an audit opinion on these consolidated
interim financial statements.
eeeeeeeeeeee

PwC20
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our review work has been
undertaken so that we might state those matters which we are required to state to them in our review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Shareholders, as a body, for our review procedures, for this
report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Karen
Shires.
For and on behalf of:
Chartered Accountants
Auckland, New Zealand
25 May 2023

---

Tower
2023 Half
Year Results
1 October 2022 to 31 March 2023
25 May 2023

2
Chairman’s update
Michael Stiassny, Chairman
Business update
Blair Turnbull, Chief Executive Officer
HY23 financial performance
Paul Johnston, Chief Financial Officer
Looking forward
Blair Turnbull, Chief Executive Officer
Agenda

3
Chairman’s update
Taking decisive action to address external challenges
Catastrophic events
Inflation
Motor crime
Strong rating and underwriting actions
Expansion of risk-based pricing
Maintaining a prudent dividend policy

4
Business
update
Blair Turnbull
Chief Executive Officer

105.3%
vs 94.8% in HY22
COR
(Combined operating ratio)
51.6%
vs 48.6% in HY22
Our performance
Business performance impacted by catastrophe events
BAU claims ratio
MER
(Management expense ratio)
35.1%
vs 35.8% in HY22
$23.6m
vs $18.2m in HY22
Underlying profit
excl. large events costs
Large events
$33.9m
vs $17.9m in HY22
Reported loss
$5.1m
vs $3m profit in HY22
5
Note 1: adjusted to exclude Papua New Guinea
GWP growth
(Gross written premium)
15%| $245m
vs $216m in HY22
1
$3.3m
vs $5.4m profit in HY22
Underlying loss
incl. large events costs

Catastrophic and large weather events
6
T o w e r R o l l i n g 1 2 M o n t h L a r g e E v e n t s
( G r o s s E s t i m a t e)
Auckland & Upper North Island weather event
•$195m-$225m, ~5,550 claims, $11.9m net impact
•30% claims settled
Cyclone Gabrielle
•$55m-$75m, ~3,350 claims, $11.9m net impact
•30% claims settled
Vanuatu Cyclones
•$15m, ~250 claims, $10m net impact
•5% claims settled
FY23 large events allowance increasedto $50m
net of reinsurance recoveries.
Note 1: Sourced from ICNZ
1

Managing impacts of increasing weather events
7
Transparent underwriting and risk-based pricing
•Landslide risk selection implemented
•Increased weighting of flood risk portion of
premium
•Automated coastal & landslide risk-based
pricing launching 2023
Product innovation
•Parametric
Observed flooding
Tower flood model

Managing impacts of inflation and motor crime
8
Inflation
•Monthly inflation rate changes
•Sum insured amounts matched to Cordell or CPI
atrenewal
•Rating to mitigate reinsurance and weather-
related costs
Motor theft
•Theft more than 10% of total motor claim costs -
double historical averages
•High theft vehicle rate & excess changes
New Zealand Motor theft and related offences (NZ Police victimisations)
Rating to mitigate
reinsurance/weather
costs

Outlook for second half
•Efficiently settling large event claims
•Targeted rate increases and further underwriting improvements to address inflation
•15% -20% GWP growth
•Continuing to deliver operationalefficiencies
•Reinsurance protection for two additional catastrophe events in FY23up to $889m per event
•Auckland storm on 9 May expected to be a large event in the range of $4m to $6m
•Full year underlying NPAT guidance of $8m-$13m, assuming $50m large events allowance is
used ($10m -$12m remaining for further large events)
9

10
Continued customer and premium growth
N Z r a t e v s o r g a n i c
1 5 % G W P I N C RE A S E
60:40
C U S T O M E RS
320,000
N Z C U S T O M E RS W I T H
M U LT I P RO D U C T S
51%
W i t h a n a v e r a g e
t e n u r e o f 8 y e a r s
U p 5 % o n H Y 2 2
N Z r i s k s u p 5 % t o 5 9 2 k
U p f r o m 7 8 % i n H Y 2 2
T O W E R D I RE C T RE T E N T I O N
79%
1 2 M O N T H R O L L I N G
G W P B Y P R O D U C T ( $ m )
Note 1: Comparative period restated to account for customer de duplication process and Papua New Guinea subsidiary sale
Note 2: Normalisingfor EQC cap change which reduced Tower’s company premium
1
2

11
P A R T N E R S H I P S G W P ( $ m )
P A C I F I C G W P ( $ m )
Channel and efficiency improvements
•20% premium growth to $183m
•88% legacy bank book policy retention
•237k My Tower registrations, up 44%
•23% active partner growthto $37m
•Advisor network grew 57% to 2,200
•Commission reduced to 2.1% of GEP
•Simplifying: PNG sale
•My Tower live in 7 countries, vs 1 HY22
•Tightening risk appetite
PARTNERSHIPSTOWER DIRECTPACIFIC
Note: 1:Legacy partnership portfolios have been transferred from the Partnerships business unit to Tower Direct after purchase, beingANZ in FY21, TSB and Westpacin FY22, Kiwibankin FY23
Note 2: Adjusted to exclude Papua New Guinea
1
2
T O W E R D I R E C T G W P ( $ m )

12
Improving efficiency through leading data and digital
N Z D I R E C T S A L E S O N L I N E
N Z S E R V I C E & C L A I M S T A S K S O N L I N E
•Digital driving down costs to acquire and serve
•Lowering telephony and service costs through Suva hub
•Leading NZ online NPS, improved to 58% from 56% in HY22
•Continuous improvement via core platform agility
•Rapid daily tech releases take 25min, down from 2 hours

13
Reducing MER as simplification and digitisationrealised
M A N A G E M E N T E X P E N S E R A T I O ( % N E P )
•Streamlining our business -1 platform, all
countries
•Simplified organisationalalignment
•Scale and operational efficiency enabled
through digitisation

Financial
performance
Paul Johnston
Chief Financial Officer

15
Group underlying financial performance
•Strong premium growth of 15%
•BAU loss ratio of 51.6%, an increase of 3% as a result of
increased motor frequency
•$3.4m reinsurance reinstatement costs expensed in the half
year
•Management expense ratio improved to 35.1% as a result of
expense efficiencies and scale
•HY Underlying NPAT before large events of $23.6m
•Non-underlying transactions include gain on sale of PNG and
Suva building, CEQ valuation increase, prior period tax
adjustments, and an increase to the customer remediation
provision
Note: 1: Refer to reconciliation between Underlying NPAT and Reported profit on page 28
1

16
•Underlying NPAT loss of $3.3m
•Additional large event impact of $14m ($37.3m pre-tax HY23
vs $17.9m HY22)
•Premium growth partially offset by rising motor claims
•Reduction in commission expense from legacy book purchase
•Liability Adequacy Test (LAT) one-off unwind included in HY22
($2.5m pre tax)
Underlying NPAT impacted by large events
M O V E M E N T I N U N D E R L Y I N G N P A T
1
Note 1: Includes the cost of large event claims and catastrophe reinsurance reinstatement cost

17
BAU claims challenged by motor frequency and inflation
N Z M O T O R F R E Q U E N C Y & S E V E R I T Y
•High inflation period impacting cost of claims (severity)
•NZ motor claims frequency above historical norms
•Covid lockdowns lowered motor frequency in previous periods
•Motor theft contributing to higher frequency and severity
Note 1: Severity is defined as the cost of claims (excluding large events, large house, windscreen) divided by the count of claims. In prior years this definition excluded negative or zero incurred claim volumes and was
based only on closed claims. The updated definition is deemed more affective in understanding claims and aligns to the actuarialvaluation of outstanding claims
Note 2: Frequency is defined as the number of claims (same exclusions as above) divided by risks in force
N Z H O U S E F R E Q U E N C Y & S E V E R I T Y
T O T A L C L A I M S R A T I O

18
Continued improvement in management expenses
M O V E M E N T I N M A N A G E M E N T E X P E N S E R A T I O ( M E R )
•MER reduced 0.7% to 35.1%
•Scale contributes a 4.8% reduction in MER
•Commission expenses decreased due to the
purchase of back book legacy portfolios
•Nil reinsurance profit share impacts net
commission expenses
•HY22 includes the release of a liability adequacy
test (LAT) provision of $2.5m

19
Higher investment returns as yields increase
Note 1: Core investment portfolio refers to Tower’s fixed income investment portfolio in NZ. It excludes cash held for operational purposes in NZ and cash and short-term deposits held by Tower’s
Pacific subsidiaries. Subsidiaries of banking groups with a credit rating have been grouped under their parent bank’s credit rating, even if unrated themselves
C O R E I N V E S T M E N T P O R T F O L I O Y I E L D
•Net Investment Income $6.3m for HY23, $7.2m higher than HY22
•Interest rates have stabilisedresulting in higher running yields
•Tower maintains a conservative investment strategy
•Strategy has minimisedprofit impact from macroeconomic factors and market movements
•Running yield on the core investment portfolio has increased to 5.45% at 31 March 2023
A S S E T P R O F I L E –A L L C A S H & I N V E S T M E N T S
1

20
Retain $12.5mRetain $13.1m
3rd Cat Event4th Cat Event
Prepaid Drop
87% covered
Reinsurance programmesupports resilience
•Reinsurance expected to cover up to $276m of large events
costs in HY23
•$187m of catastrophe cover has been reinstated
•Catastrophe reinsurance of $889m each for two further
events available for the balance of FY23
•Reinstatement cost included in full year guidance, expensed
portion of reinstatement included in HY23 result
•Future year retention limits and programmepremium
increases mitigated due to 3 year rolling contracts
$889m
$200m
$57.5m
March reinstatement
May reinstatement
Tower would have further exposure to a third catastrophe event in the FY23 financial year to the extent claims costs for CycloneGabrielle exceed $57.5mto the
catastrophe treaty. A third event would incur an excess of $12.5m as well as a 13.25% share of losses between $12.5m and $57.5m.

21
Canterbury earthquake claims reducing
O P E N C E Q C L A I M S
•Adverse P&L charge of $1m after tax as a non-underlying item
•Steady progress in closing claims with 31 properties open as at31 March 2023 vs 35 at March 2022
•Numbers of new claims have reduced over the half
•Remaining gross outstanding claims provision is $22.1m down from $24.5m atSeptember 2022

22
Capital and solvency position
Note 1: SR = Solvency ratio –the ratio of actual solvency capital to minimum solvency capital
T O W E R S O L V E N C Y -N Z P A R E N T ( $ m )
•Minimum solvency capital increased due to increased catastrophe risk and capital required for open catastrophe claims
•Solvency ratio of 125%, $25m above RBNZ minimum solvency capital, but below historical operating range
•Solvency position for full year FY23 is projected to improve due to expected profit and settlement of event claims
•A-credit rating reaffirmed in April 2023 by AM Best
SR = 215%
SR = 205%
SR = 125%
SR = 225%

23
Full year guidance
FY23 Guidance
GWP growth
15% -20%
(excluding Tower PNG)
Large events allowance$50m
Underlying NPAT
(assuming $50m large events
allowance is used)
$8m-$13m
DividendDecision will be made when full year results are finalised
Note 1: Tower’s ordinary dividend policy is to pay a stable annual dividend to shareholders that aims to be in the range between 60-80% of “adjusted earnings” (defined as the reported full year
Net Profit After Tax (NPAT) plus acquisition amortisationand unusual items) for the Tower consolidated group, where prudent to do so.
1

Looking
forward
Blair Turnbull
Chief Executive Officer

25
Investing in future resilience and sustainability
PROG RE S S I NG C LI M A T E
C H A N G E S T RA T E G Y
Climate-related
Financial
Disclosures
F i r s t d i s c l o s u r e
r e q u i r e d F Y 2 4
LE A D I NG G LOB A L E S G
B E N C H M A RK
Targeting B Corp
certification
i n F Y 2 4
t o 9 8 . 5 t C O 2 i n H Y 2 3 ,
o n t r a c k t o m e e t 2 0 2 5
2 1 % r e d u c t i o n t a r g e t
RE D U C E D S C O P E 1 & 2
E M I S S I O N S B Y
59%
S C A LI N G P A RA M E T RI C
Fiji, Tonga,
Samoa
P a r t n e r i n g w i t h U n i t e d
N a t i o n s
Continually developing hazard modelling
Landslide, coastal storm surge risk-based pricing launching
second half, 2023
Image credit: Swiss Re

Positioned to deliver long-term earnings
•Robust risk management and rating actions
•Targeted customer and premium growth
•Enhanced margin through efficiency and organisationalimprovements
•Mitigating large event impacts
•Investing for resilience and sustainability
•Attractive earnings and dividends over the longer term
26

Questions?

28
Reconciliation between underlying profit after tax and reported profit after tax
Underlying and reported (loss)/profit:
•“Underlying (loss)/ profit” does not have a standardised meaning under
Generally Accepted Accounting Practice (GAAP).Consequently it may not
be comparable to similar measures presented by other reporting entities
and is not subject to audit or independent review
•Tower uses underlying (loss)/profit as an internal reporting measure as
management believes it provides a better measure of Tower’s underlying
performance than reported profit, as it excludes large or non-recurring
items that may obscure trends in Tower’s underlying performance, and is
useful to investors as it makes it easier to compare Tower’s financial
performance between periods
•Tower has applied a consistent approach to measuring underlying profit
in the current and comparative periods
•“Reported (loss)/profit after tax” is calculated and presented in
accordance with GAAP and is taken from Tower Limited’s financial
statements for the half year ended 31 March 2023
(1)Non-underlying items include net impact of Canterbury earthquake valuation update, customer remediation provision
update, regulatory and compliance projects (such as the adoption of IFRS-17), and a prior period tax adjustment
(2)Reclassification of claims handling expenses from management expenses to net claims expense, FX gains/losses from
other income to management expenses, and reinsurance reinstatement costs as reinsurance expenses
(3)Papua New Guinea business treated as discontinued operations for statutory purposes

29
Disclaimer
This presentation has been prepared by Tower Limited to provide shareholders with information on Tower’s business. This
document is part of, and should be read in conjunction with an oral briefing to be given by Tower. A copy of this webcast of the
briefing is available at http://www.tower.co.nz/investor-centre/It contains summary information about Tower as at 31 March
2023 which is general in nature, and does not purport to contain all information a prospective investor should consider when
evaluating an investment. It is not an offer or invitation to buy Tower shares. Investors must rely on their own enquiries and
seek appropriate professional advice in relation to the information and statements in relation to the proposed prospects,
business and operations of Tower. The data contained in this document is for illustrative purposes only. Past performance is
not a guarantee of future performance and must not be relied on as such. The information in this presentation does not
constitute financial advice.
Forward looking statements
This document contains certain forward-looking statements. Such
statements relate to events and depend on circumstances that will occur
in the future and are subject to risks, uncertainties and assumptions.
There are a number of factors which could cause actual results and
developments to differ materially from those expressed or implied by
such forward-looking statements, including, among others: the
enactment of legislation or regulation that may impose costs or restrict
activities; the re-negotiation of contracts; fluctuations in demand and
pricing in the industry; fluctuations in exchange controls; changes in
government policy and taxation; industrial disputes; and war and
terrorism. These forward-looking statements speak only as at the date of
this document.
Disclaimer
Neither Tower nor any of its advisers or any of their respective
affiliates, related bodies corporate, directors, officers, partners,
employees and agents (other persons) makes any representation or
warranty as to the currency, accuracy, reliability or completeness of
information in this presentation. To the maximum extent permitted by
law, Tower and the other persons expressly disclaim any liability
incurred as a result of the information in this presentation being
inaccurate or incomplete in any way. The statements made in this
presentation are made only as at the date of this presentation. The
accuracy of the information in this presentation remains subject to
change without notice.

---

1

Tower HY23 Results Announcement Investor Presentation Script
Slide 1 – 2023 Half year Results
Michael Stiassny
Mōrena, good morning and thank you for making the time to join us for this
investor call and presentation of our 2023 half year results.
Slide 2 - Agenda
With me in Auckland is our Chief Executive Officer, Blair Turnbull and our Chief
Financial Officer, Paul Johnston who will take you through the results and
answer your questions.
Slide 3 – Chairman’s update
In what has undoubtedly been a difficult half, Tower is reporting a loss of
$5.1m, although the underlying business performance remains strong.
Revenue growth and expense control have improved and – while profits have
been impacted by catastrophic weather events – Tower remains resilient.
That resilience is a result of the decisive actions Tower has taken – and is
continuing to strengthen – to address the three major external challenges
facing our business, along with the rest of New Zealand: catastrophic weather
events, inflation and motor crime.
Catastrophic events
Three catastrophic weather events in the space of three months was
unprecedented and the consequences for communities across the North Island
and Vanuatu are tragic. It’s a sobering reminder – if one was needed – that the
risk environment in which we operate is not just changing, it has changed.

2

Data clearly shows the frequency of large events and the severity of the
damage they cause has increased over time. Tower has long been urging New
Zealand to stop building in risky areas and introduced risk-based pricing to
send the right signals to customers and encourage better decision-making by
central and local government.
Risk-based pricing is fairer from a customer perspective and is also in the best
interests of our shareholders. Risk-based pricing is Tower’s best protection
when it comes to ensuring continued support from reinsurers. It also
underpins competitive pricing, robust underwriting, continued growth, and
constructive action on issues arising from our changing climate.
Tower is expanding its risk-based pricing model to include landslide and coastal
hazards this year and will continue to develop innovative products that provide
affordable insurance for properties with the right risk profile.
While Tower is actively supporting the Government’s Cyclone Gabrielle
Recovery Taskforce and Auckland Council’s Recovery Programme, our focus is
on careful risk selection going forward.
[PAUSE]
No one can predict the climate future with any certainty. However, the data
indicates that the catastrophic weather events we have experienced in this half
are more likely to be symptomatic of a new normal, not a one-off outlier.
I’ve never been one to mince words and it is inevitable that sooner or later
Tower and other corporates will be unable to provide insurance to everyone.
It’s a grim reality.
I applaud the fact the public discourse is finally moving towards the potential
need for managed retreat in some locations. It is absolutely essential that

3

these conversations are had early, and in an open and transparent manner,
with the communities concerned. As a society, we need to ensure the
decisions that will eventually need to be made are fully understood and
supported as far as possible by the people directly affected.
In this new normal of frequent catastrophic events, risk-based pricing, together
with being more selective on the risks we take on, are vital to ensure Tower
can remain a resilient business. Importantly, it enables us to be competitive
against the Australian duopoly and underpins continued availability of
reinsurance.
[PAUSE]
Inflation and crime
Tower has been able to proactively manage inflationary pressures through
targeted rating and underwriting actions, ensuring monthly rating changes
mitigate reinsurance and weather-related cost increases. We have kept pace
with inflation and will continue to do so.
Similarly, in the wake of increasing levels of motor crime, Tower has identified
those vehicles subject to higher rates of theft and made appropriate changes
to rates and excess charges.
Being able to act swiftly and decisively to address emerging issues on a
granular level is at the heart of the digital transformation Tower has
undergone in recent years. Flexibility and agility are fundamental to Tower’s
continued confidence in its ability to successfully mitigate external challenges
beyond our control ... and remain resilient.

4

As a result, Tower expects to deliver a profit in FY23. Tower’s full year
underlying NPAT guidance is between $8m and $13m, with a large events
allowance of $50m.
[PAUSE]
As indicated earlier this month, today we confirm that we will not be paying an
interim dividend. This decision, while disappointing, reflects the Board’s focus
on prudent fiscal management. A decision on a full year dividend will be made
when Tower’s full year results are finalised.
[PAUSE]
Before I hand over to Blair, I’d like to acknowledge the Tower team. As we all
recognise, it’s been a particularly difficult time for communities bearing the
brunt of the storms, and the team is working hard to settle claims efficiently
and support affected customers.
I’ll now hand over to Blair and Paul, who will take you through the results and
outlook before we take questions.
Blair Turnbull
Slide 4 – Business update
Kia ora, thank you Michael and good morning, everyone.
Thank you for joining us for our 2023 half year financial results which see
Tower reporting improved revenue growth and expense control, with profits
impacted by catastrophic weather events.
Today’s results demonstrate that we are operating in a changing climate and
risk environment. As we navigate this new normal it is critical that New
Zealand maintains a strong insurance industry for the future.

5

We intend to be here for the long term, to continue to thrive and deliver value
to our customers and communities, our people and our shareholders.
The investments we’ve made in our technology and operational efficiencies,
robust reinsurance and enhanced hazard modelling will continue to underpin
our resilience and ability to address external challenges.
As Michael outlined, we are proactively managing climate related weather
impacts through risk-based pricing and product innovations. And we are
keeping pace with inflation via targeted rating and underwriting actions while
addressing increasing vehicle theft and increasing claims costs with rating and
excess changes.
I will talk through these actions shortly, but first, a summary of our
performance this half.
Slide 5 – Our performance – Business performance impacted by catastrophe
events
Gross Written Premium for the half year to 31 March increased to $245
million, up 15% on the same period last year. This was driven by strong rating
actions to address continued inflation, additional reinsurance premiums and
higher motor and other claims frequency, as well as continuing customer
acquisition and retention.
Increasing motor theft and a higher frequency of motor claims post-Covid have
contributed to an increase in the BAU claims ratio to 51.6% compared to 48.6%
in HY22.
We are pleased to see our management expense ratio improve again to 35.1%
versus 35.8% in HY22, thanks to our disciplined cost control and further
efficiencies.

6

Excluding large events costs, our underlying profit is up 30% on HY22 to
$23.6m.
Net costs for large events totalled $33.9m, up from $17.9m in HY22. We will
cover these events and our actions to manage these impacts in more detail
shortly.
Given these large events costs, our combined operating ratio increased to
105.3% from 94.8% in the half year 2022.
Reflecting these challenges, we are reporting an underlying net loss after tax
including large events costs of $3.3 million, down from a profit of $5.4m in the
first half of FY22.
Reported HY23 loss was $5.1m compared to a $3m profit in the half year 2022.
This was impacted by strengthening of the residual Canterbury earthquake and
multi-policy discount remediation provisions and was partially offset by the
sale of Tower’s Papua New Guinea subsidiary and our building in Suva.
Slide 6 – Catastrophic and large weather events
As you can see in this graph the frequency of disaster events in New Zealand
has been increasing steadily since the late 1960s and then accelerating more
recently.
Prior to 2023, the ten-year rolling average of large event costs for Tower was
around $14m a year while 2023 looks very different with total event costs for
the 12 months ending 31 March at a record high of $294m.
Tower is continuously monitoring these trends and has important mitigations
in place to help manage these risks – primarily through our risk-based pricing

7

approach and our robust reinsurance programme which has provided
protection from the catastrophe events experienced in New Zealand this half.
We have completed approximately 30% of claims for the Auckland & Upper
North Island weather event and Cyclone Gabrielle. Around 5% of claims for
Cyclones Judy and Kevin have been settled and we are working efficiently to
close the remainder.
These events are predominantly covered by reinsurance with the cost to Tower
for each the Auckland & Upper North Island weather event and Cyclone
Gabrielle limited to an $11.9m excess. The estimated impact of the Vanuatu
cyclones is $10m net of reinsurance recoveries.
Accordingly, we have increased our FY23 large events allowance to $50m net
of reinsurance recoveries, up from $40m.
Slide 7 – Managing impacts of increasing weather events
Tower is proactively managing this increasing frequency and severity of large
events that are linked to our changing climate.
With our approach to risk-based pricing we are sharing information with
customers about their properties so they can make informed decisions and
understand their insurance needs and premiums better. Risk-based pricing is a
fairer way to price insurance as customers only pay for the risks that apply to
their property.
Since implementing our flood modelling in 2021 we have tested our model
against the actual impacts of subsequent flood events, and these have
matched closely every time. While the most recent floods were particularly
severe, our testing has confirmed that they followed the patterns we had

8

modelled, which continues to give us confidence in the accuracy of our pricing
and underwriting.
Additionally, we are actively working to improve and refine our risk-based
pricing to ensure we further protect the business from the volatility of weather
events. Immediately following the events this first half we implemented
heightened risk selection criteria for landslide risks.
We have also increased the weighting we put on the flood risk portion of
customer premiums to ensure our pricing accurately reflects the changing risk
profile.
In addition, we are working to expand our hazard model to include landslide
and coastal hazards and we plan to implement automated pricing for these
risks in the second half of 2023.
Ensuring our product development and innovation supports climate change
resilience and action is also a priority as this will ensure we continue to offer
relevant insurance products well into the future.
For example, we are planning to expand our parametric insurance pilot in Fiji
to also cover cyclone hazards in Tonga and Samoa. Our Cyclone Response
Cover provides a lower value rapid cash pay-out when a customer is impacted
by a high wind speed cyclone event, regardless of damage and without the
need for an insurance assessor’s signoff.
Slide 8 – Managing impacts of inflation and crime
Tower’s advantage is our ability to identify and quickly address emerging
trends, thanks to our investments in digital and data technology and the
decisive actions we’ve taken to deliver improvements.

9

As we respond to the challenges presented by climate change, Tower has also
been actively managing the impacts of both inflation and increasing claims
costs, particularly motor crime.
Since we started seeing the effects of inflation two years ago Tower has
responded dynamically with decisive monthly rating actions. As you can see on
this chart we have consistently kept pace with inflation across our motor and
house premiums. The sharp rise in premiums earlier this year reflects the
rating actions we’ve taken to mitigate the increasing costs of reinsurance and
weather events.
We are continuing to ensure the accuracy of customers’ sum insured amounts
(and therefore their pricing) by updating these automatically at renewal either
by the consumer price index or the Cordell calculator.
As we noted at our annual shareholder meeting in February, motor theft is a
continuing challenge in New Zealand and it now accounts for more than 10% of
total motor claims costs, around double historical averages. As you can see in
this chart, New Zealand Police data clearly reflects this growing and concerning
trend.
This type of crime not only affects the victims’ property and well-being it
affects their insurance too. While we are of course supporting customers with
information to help mitigate the thefts, it should come as no surprise that we
are also responding with actions to protect the impact on both our business
and other policyholders. These include increasing premiums and excesses for
vehicle models that are being stolen more regularly.
Slide 9 – Outlook for second half

10

Due to our disciplined performance, we remain a resilient business. We are
mitigating risks from large event costs, motor crime and inflation, we are
managing our expenses and we are growing well.
Importantly we are focused on supporting customers while working efficiently
to settle the claims from the recent large events.
Through digitisation and our agile approach to pricing and underwriting we are
continuing to address the challenges presented by inflation.
Through targeted organic growth as well as strong rating actions, we are
expecting GWP growth of 15% to 20% over the year.
And we expect to continue our positive trend of delivering operational
efficiencies.
We have successfully completed the reinstatement of our reinsurance
arrangements and have protection for two additional catastrophe events of up
to $889m per event for the remainder of the financial year.
We expect the storm in Auckland on 9 May to be a large event in the range of
$4m to $6m.
Tower’s 2023 full year underlying NPAT guidance is between $8m and $13m,
assuming the $50m large events allowance is used. We have between $10m
and $12m of our large events allowance remaining for any further large events
in the financial year.
Slide 10 – Continued customer and premium growth
Tower’s focus on simple and rewarding customer experiences combined with
consistent rating actions have contributed to strong growth in both customers
and premium.

11

We have grown customer numbers to 320,000, up 5% on the 2022 half year.
New Zealand risks in force also grew by 5% to 592,000.
Our 15% growth in premium reflects an appropriate mix of rating and organic
growth with 60% of our New Zealand premium growth driven by decisive
rating actions.
As you can see in this 12 month rolling view we are growing steadily in our
core home, contents and motor product offerings with GWP reaching $486m
year on year.
Our digitisation strategy continues to drive deeper customer engagement and
growth, with our retention rate for Tower Direct up to 79% versus 78% in
HY22.
We are continuing to sell more to existing customers who stay with us longer
as we grow. Half of our New Zealand customers have two or more products
with Tower, and these customers stay with us for an average of eight years.
Slide 11 – Channel and efficiency improvements
All three of our business channels are growing and delivering efficiency
improvements.
Tower Direct
Our flagship Tower Direct business grew GWP by 19% to $183m as we
continued to build rewarding and engaging relationships with customers.
Contributing to this was our strong, 88% retention of the customers we
transitioned to Tower Direct via our legacy book acquisitions.

12

Our leading digital platform continues to perform strongly and increase
customer engagement. In HY23 My Tower registrations grew to 237,000, up
44% on HY22.
Partnerships
Our Partnerships channel is continuing to deliver positive growth with GWP
from active partners increasing by 23% to $37m for the half year.
The number of advisors referring customers to Tower has also expanded,
increasing by 57% over the year to 2,200 active advisors.
Thanks to the successful completion of our strategy of acquiring legacy
insurance books and migrating them to Tower Direct last year, our commission
payments continue to reduce and our net commission expense is now
equivalent to just 2.1% of gross earned premium compared to 2.3% in HY22.
Pacific
We are continuing to digitise and simplify our Pacific offering, aligning our New
Zealand and Pacific activities more closely to deliver growth and efficiencies.
With this simplification in mind, we completed the sale of our Papua New
Guinea subsidiary in October.
The full My Tower experience is now available across all markets where we
operate contributing to Pacific GWP growing by 9% year on year to $24m in
the half.
We are continuing to tighten our risk appetite in the Pacific to focus on our
core personal lines offering. Following Cyclones Judy and Kevin we have
paused sales of house policies in Vanuatu as we reassess the risk environment.
Slide 12 – Improving efficiency through leading data and digital

13

The customer and efficiency benefits from our leading digital and data
technology platform are continuing to be realised.
Our digital platform is driving down the costs to acquire new business and
serve customers as customers increasingly adopt our online sales and service
channels. This is evidenced by 76% of New Zealand Direct sales now occurring
online, up from 63% in the prior year, and 54% of New Zealand service and
claims tasks now being completed online, up from 49% in HY22.
Our investments in digital technology are increasingly enabling us to move
workflows to our Suva hub which is continuing to lower telephony and service
costs.
These efficiency improvements are flowing through to improved customer
satisfaction with our New Zealand online net promoter score improving to a
pleasing 58% in HY23.
On top of winning Canstar’s top Car Insurer of the Year Award, and
Outstanding Value Award for the second year running last year, we were proud
to win a Canstar Outstanding Value award for our home and contents
insurance product.
The agility of our core platform continues to deliver efficiency improvements
including rapid deployment of technology releases which now only take us 25
minutes a day, down from two hours previously.
Slide 13 – Reducing MER as simplification and digitisation realised
Our investments in simplifying and digitising our business continue to deliver
MER improvements. And in the context of the external challenges we are
managing, we are particularly pleased to have achieved yet another reduction
in MER to 35.1% this half.

14

With our core platform live across all countries we have simplified our
organisational alignment around our three customers journeys: new business,
service and claims – rather than across geographical locations. This set up is
aimed at delivering consistent and repeatable processes across our business –
continuing to reduce complexity, duplication and risk.
In addition to these operational efficiencies, a key driver of MER improvements
is our increasing scale being achieved through digitisation.
Slide 14 – Financial performance title slide – Paul Johnston
I will now hand you over to our chief financial officer Paul Johnston who will
take you through the details of our financial performance this half.
Slide 15 – Group underlying financial performance
Thank you, Blair.
Looking at the consolidated results, we can see that growth in GWP has
continued, increasing by $28.9m, or 15%, on HY22.
As Michael and Blair have highlighted increased motor frequency, driven by
crime has contributed to our BAU loss ratio increasing 3% to 51.6%.
The reinsurance reinstatement costs contributed a $3.4m impact in the half
year.
Pleasingly, management expenses improved to 35.1% as we continue to
deliver expense efficiencies and increasing scale through the benefits of
digitisation.
Underlying NPAT before large events increased 30% to $23.6m, demonstrating
strong business performance. Including large events costs we have reported an
underlying net loss after tax of $3.3m.

15

Reported loss of $5.1m was impacted by non-underlying transactions which
include strengthening of the residual Canterbury earthquake provision and
multi-policy discount remediation provision. These were partially offset by the
sale of Tower’s Papua New Guinea subsidiary and our building in Suva.
Slide 16 – Underlying NPAT impacted by large events
As this chart demonstrates the large events impact had a substantial $26.9m
impact on our financial performance leading to the $3.3m underlying loss this
half. HY23 large events costs were $14m higher than large events costs in HY22
after tax.
Premium growth provided a $5.8m benefit to the result which was partially
offset by rising motor claims.
HY23 saw commissions further reduce by $400,000 and investment income
increase by $5.2m.
The HY22 release of the Liability Adequacy Test provision contributed $1.8m to
the movement between HY22 and HY23 underlying NPAT.
A $4.3m increase in after tax expenses includes amortisation of the legacy back
book purchases and an increase in staffing costs due to wage inflation and an
increased investment in growth.
As we have previously noted, reported loss was impacted by strengthening of
the residual Canterbury earthquake provision and customer remediation
provision which includes compensation payments as a result of discounts for
taking out multiple policies being incorrectly applied.
Slide 17 – BAU claims challenged by motor frequency and inflation

16

The positive rating actions we have taken in the past two years to address the
rapidly increasing inflationary pressures have seen improvements.
However, BAU claims costs continue to be challenged by the increasing
frequency of motor claims as well as inflation which is impacting the severity,
or cost of claims. These are tracking above historical norms in New Zealand at
12.7% following a more subdued period due to Covid lockdowns.
As motor crimes tend to result in the total loss of a vehicle, this trend of
increasing motor theft is contributing to both higher frequency and severity
with average New Zealand motor claims costs now up to $2,981.
While New Zealand house claims frequency is down to 6.9%, average severity
is up to $3,499.
These factors have led to our BAU loss ratio increasing by 3% on HY22 to
51.6%. The large events experienced this half have contributed an additional
16.9% to a total claims ratio of 68.5%.
As Blair outlined, Tower has applied targeted premium increases across motor
and home to offset inflation and other increases. We also continue to work
closely with supply chain partners to moderate the impact on customers as
much as possible.
Slide 18 - Continued improvement in management expenses
We are pleased to see our management expense ratio continue to reduce with
an improvement over the half year of 0.7% to 35.1%.
Business growth has enabled efficiencies and a 4.8 percentage point reduction
in MER with a further 0.2 point decrease in net commission expenses due to
the legacy back book portfolio purchases.

17

Other MER impacts include a 1.2 point increase in marketing and technology
investments which help drive growth and efficiencies, as well as a 1.5 point
increase in staff costs associated with inflation and increased investment in
growth.
Slide 19 – Higher investment returns as yields increase
Net investment income in HY23 increased to $6.3m before tax, this was $7.2m
higher than in HY22.
This increased income reflects interest rates stabilising, resulting in higher
running yields.
Tower maintains a conservative investment policy with a focus on high credit
quality and liquidity bonds, and a target duration for the core investment
portfolio of six months.
Our strategy has mitigated the impact on our profit from macroeconomic
factors and market movements in the past, and now allows us to benefit from
higher interest rates, as evidenced by the running yield on the core investment
portfolio increasing to 5.45% at 31 March 2023.
Slide 20 – Reinsurance programme supports resilience
Tower’s reinsurance strategy provides protection from volatility caused by
large events and maintains financial flexibility to support growth, while
underpinning strong solvency.
This resilience has been realised in the first half as we expect our reinsurance
arrangements to protect us from up to an estimate of $276m of catastrophe
event costs.

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In line with our conservative approach to reinsurance, we have successfully
reinstated $187m of our reinsurance arrangements which gives us cover for a
potential third and fourth catastrophe event each up to $889m in the balance
of the financial year.
This week we completed the purchase of additional catastrophe reinsurance to
cover the increased estimate for the ultimate cost of February’s Auckland and
Upper North Island Weather event.
The costs for these reinstatements are included in our revised full year
guidance and the expensed portion of reinstatement premium is included in
our half year result.
We have mitigated potential increases to future reinsurance premiums and
excesses by negotiating three year rolling contracts with our reinsurers who we
continue to have positive relationships with.
Slide 21 – Canterbury earthquake claims reducing
We are continuing to make steady progress in settling Canterbury claims with
15 closed over the half. In line with expectations, we received an additional 10
new overcaps and reopened claims, bringing the total number of open claims
at the half year to 31. This was a net decrease of 5 from a total of 36 as at the
end of September 2022.
HY23 has seen an adverse Canterbury earthquake P&L charge of $1m after tax
in non-underlying Items, reflecting increases in expected claims costs.
Some of our open CEQ claims are complex and long-term. The increase in
expected cost was driven by both inflation and more costly rectification
approaches. However, the remaining gross outstanding claims provision
reduced down to $22.1m over the half from $24.5m at September 2022.

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We continue to closely manage these outstanding claims and our dedicated
team is actively working to finalise claims as efficiently as possible.
Slide 22 - Capital and solvency position
As a result of increased risk from any further catastrophe events and
outstanding claims related to the catastrophe events experienced in the half,
Tower is required to hold additional capital until claims are settled and
reinsurance recoveries are received.
With a solvency ratio of 125%, we are holding $25m above the minimum
capital required for solvency. This is below our historical operating range.
We are resolutely focused on settling these claims for customers and collecting
the recoveries from reinsurers which will reduce our minimum solvency capital
and improve our solvency position by the year end.
Our A- credit rating was reaffirmed in April by AM Best.
Slide 23 – Full year guidance
As we communicated to the market on the 8
th
of May, Tower anticipates FY23
underlying NPAT of between $8m and $13m.
This range is based on further growth of between 15% and 20% as well as a
large events allowance of $50m.
A final decision on any FY23 dividend will be made when the full year results
are finalised.
Slide 24 – Looking forward
Thank you. I will now hand back to Blair who will provide an update on our
outlook.

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Blair Turnbull
Thank you, Paul.
Slide 25 – Investing in future resilience and sustainability
As we manage the short and medium term challenges of inflation, motor crime
and the changing climate we are focused on investing in our future resilience
and sustainability.
We are scaling our parametric insurance offering by partnering with the United
Nations to expand our pilot beyond Fiji to Tonga and Samoa.
We are focused on reducing our operational emissions as we recognise that
every effort to reduce emissions helps to mitigate global warming. This half,
we have reduced emissions by 59% compared to HY22 which has largely been
achieved through a substantial reduction in Pacific fuel use due to changing
driving and commuting patterns. We are currently on track to meet our five-
year scope 1 and 2 emissions reduction target of 21% by 2025.
Importantly we are continually developing our hazard modelling and as I’ve
previously outlined, this year we will add landslip as well as coastal erosion and
inundation risks to our customer facing risk ratings tool, educating
homeowners transparently about the risks that may impact their properties.
We know that sustainability issues are important to our people and customers.
Our consumer research shows that for almost half (47%) of people, a
commitment to sustainability and climate action matters when choosing an
insurance company.
With this in mind I’m pleased to share that Tower is aiming to achieve B Corp
accreditation in the coming year. B Corp is a globally recognised sustainability

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benchmark which measures a company’s entire social and environmental
impact.
We are currently making positive progress on our climate change strategy as
we move towards the Climate-related Disclosures regime. We look forward to
sharing more with you as we work towards our first disclosure.
Slide 26 – Positioned to deliver long-term earnings
In summary, our focus remains on continuing our solid underlying operating
performance through robust risk management and continued rating actions to
mitigate inflation, motor crime and weather events.
We continue to focus on targeted customer and premium growth while
enhancing our margins through efficiency and organisational improvements.
Tower remains committed to mitigating the volatility of large events impacts
through risk-based pricing and our robust reinsurance arrangements. And
while we manage the effects of the changing climate now, we will continue to
invest in future business resilience and sustainability.
Ultimately this leads to attractive earnings and dividends for shareholders in
the long term.
Thank you for your time this morning, I will now hand back to the operator to
ask for questions.