Page
WKH
ERGLO\
Qgfdwhvd
Dlqvwxqvdisudfwlfhv
Dzdiup
7XUQRII
Vkrfndqgsrvlwlrqv
Lqwr
\VWHPFDQFDVHODWLRQRQO\
3UHFDXWLRQVRQ,QVWDOODWLRQ
Wrvkduswhpshudxuhuhlvfqgqvdwlrqgxh
Pdoixqfwlrqriwkhprgho
Fdxvhsorvlrqruiluh
Hvxuh
2WKHUZLVHLWFDQFDXVHHOHFWULFVKRFNRU
WKH\FOLFNDQGILWKHPRQWKHEDZLWK
QVXIILFLHQWLQVWDOODWLRQFDQFDXVHFXUHO\IDLOXUHRU
Hvxuhwrnhhs Whuplqdoeorfnfryhuv
RUELGGHQ2WKHUZLVH7KH &GLUHFWSRZHU $, 87,212VXSSO\
VKRFNRUMXU\
6DIHW\3UHFDXWLRQVRQ0DLQWHQDQFHDQG,QVSHFWLRQ
Wkhsdqhofdvhriwkhprgho
2WKHUZLVHLWPD\PDOIXQFWLRQRUFDXVH
YLL
Vkrfnruiluh
6DIHW\3UHFDXWLRQVLQDLO\2SHUDWLRQ
Ylll
6DIHW\3UHFDXWLRQVRQLVSRVDO
Lqioxhqfh
Phwhu
\VWHPQRWH Fdqqgjhuxpdqolih
UHODWHGPDQXDOVVRWKDW\RXFDQIRUDGDQ\WLPH WKH67LVLQ
RSHUDWLRQPHPRU\FRQILJXUDWLRQ,2
3XOVH
736VRIWZDUHIRUZLQGRZV
7VHULHV&RPSXWHU/LQNXQFWLRQ8VHUV0DQXDO8076
YLFH1HW6FDQQHU0RGXOH0DQXDO
Zlulqjdqgrshudwlrqj
6DIHW\3UHFDXWLRQV
6HTXHQFH&RQWUROOHU67
LPLWDWLRQRI$SSOLFDWLRQV
0RGXOHVFDSDFLWFRQVLGHUDWLRQ
DLO\FKHFNLQJLWHPV
7URXEOHVGXHWRHWHUQDOIDFWRUV
3RZHUXS Vhtxhqfh
7URXEOHVKRRWLQJLQSXW
1RRI
Wkhuqhw
6SHFLILFDWLRQ
5HPDUNV
7KH67DFFHVVHVGLUHFW,2PRGXOHVYLD
67FRQILJXUDWLRQDV6WDWLRQ0RGXO
Lqwhuidfh
Hsdqvlrq
7VHULHV
Edvlfxqlw
HYLFH1HW
$QHDPSOHRI67V\VWHPFRQILJXUDWLRQDVVWDWLRQPRGXOH
9GFLQSXW
Sdqvlrqedvh
3RZHUVXSSO\PRGXOH
0DLQEDVH
Sdqvlrqedvh
0RGXOHLPSOHPHQWDWLRQIURPEDVHYLHZ
Lpsohphqwdwlrq
0RGXOHLPSOHPHQWDWLRQIURPHDFKPRGXOHYLHZ
7DEOH&382QHPRGXOH
WR6OWQXPEHURIEDVPRGXOH
38$OO6ORWIU6WDWLRQPRGXOHGXOH,2PRGXOH
LUHFW,2PRGXOHRWKHUV
XQLWLQZKLFK67HLVWV
Xqlwfryhu
Wkhderyh
DPSOHV36
SX\O676/SHUIRUPDQFH61
UHLVQROLLWFRQQHFRPELQDWLRQVRIWKHW\SHVRI
Hdfkxlw
Sdqvlrqxqlw
KDSW6\VWHP67&RQILJXUDWLRQ&380RGXOPRGXOH
3URJUDPPHUSRUW
6WDWXVGLVSOD\/V
DWWHU\PRGXOHFRYHU
LQWKH+$/7PRGH
5HPDUN
581IURP+$/7PRGH,QLWLDO/RDG3URJUDP
WLQJ6ZLWFKHVRI2SHUDWLRQ0RG
66HWWLQJ5816WDQGE\6ZLWFK2SHUDWLRQ
\PEROV
2QHWR2QH
Glvwdqfh
2WKHUSLQVHFHSWWKHDERYHWDEOHVKRXOGQRWEHFRQQHFWHG127
LV Vloh
FRP S
\VWHP
5HDGLQJGDWD
Ghylfh
67DQFRPPXQLFDW
1PHV
FRGHLV&5
DUW
ULHVSURJUDPPHUSURWRFRO%LQDU\
0HVVDJHOHQJWKFRGH
Deohfrqqhfwlrq
3LQDVVLJQPHQWRI/,1.SRUW
\PEROV
Rpsxwhuolqnprg
56&56
KDSW6\VWHP&RQILJXUDWLRQ
6HWXSSURFHGXU
Rpsxwhuolqnprgh
6HTXHQFH&RQWUROOHU67
Prgh
6KLHOGHGWZLVWHGSDLUFDEOH
Sdudphwhu
KDSW6\VWHP&RQILJXUDWLRQ
Hdpsoh
DUULDJHUHWXUQFRGH+
Rupdwlghqwlilfdwlrqfrgh Rppdqg
Rewdlq
5HDG
7VHULHV&RPSXWHU/LQN2SHUDWLRQ0DQXDO
5HDG
6WDWXV5HDG
PRGHZRUNVDVKDOIGXSOHFRPPXLFDWLRQV\VWHP
$SSOLFDEOHPHVVDJHIRUPDWGHIDXOWWUDLOLQJFRGH
WUDQVPLVVLRQPHVVDJHLVHQGHGE\WZRRUPRUHW\SHVRIWUDLOLQJFRGH
UHH$6&OOPRGH
Phvvdjhv
UHFHLYHEXIIHU7KHQE\XVLQJWKH
6HULDO
Uzluh
Vhohfwlqjruesv
$6&,,GHYLFHVE\XVLQJWKHIROORZLQJVSHFLDOIXQFW Lrqghylfh
5HIHUWRVHFWLRQ
Dqguhfhlylqjphvvdjhv
67SRZHURQQIXQFWLRQ
5HIHUWRVHFWLRQEDXGUDWH
Ghylfh
6KRUWEHWZHHQ5$DQG750IRUWHUPLQDWLRQDWWKH67
7UHPRYDEOHWHUPLQDOEORFNLVSURYLGHGIRUFEOHFRQQHFWLRQ5
FRQILJXUDWLRQ6KLHOGHGWZLVWHGSDLUFDEOH
$DQG7%WKHERWKWHUPLQDO
EHWZHHQ5$DQG5%DQGEHWZHHQ
UHH$6&OOPRGH
OLQNSRUWRSHUDWLRQ1DPRGH
Page
Dqvwkhrughuri
KDSW6\VWHP&RQILJXUDWLRQ
7KHDERYHSUJUDPLVDQHDPSOH
7UDQIHU
Dwduhfhlyhrshudwlrq
Khqwkhlqsxw
6DPSOHSURJUDP
WR21WKHUHDGRSHUDWLRQLVVWDUWHG
UHH$6&OOPRGH
… &RPPXQLFDWLRQURXWLQHLVXQGHUFXWLQJEXV\RWKHUUFLYLQJRU
… 6HQGQRWUDLOLQJFRGHPHVVDJHOHJWKHUURULQWKHVRXUFHWDEOH
… 1PDOFRPSOHH
6DPSOHESVESVSURJUDPESV Vhfrqgv
Zulwh
6HWVWKHSD
SRJ
UHH$6&OOPRGH
Vhuldo
Uhfhlyhexiihudqgwkhuhfhlyhhuurulqirupdwlrq
5HVHWRSHUDWLRQ
Vwdqw
Zklfklv
Xqfwlrq
KHQWKHLQSXWLV21GDWD
7KH
Lvghvljqdwhgdvvrxufhghvwlqdwlrq
PD Zrugv
5HIUWRWKHIROORZLQJWDEOHIRUFRQWHQWVRIHDFKGHVLJQDWLRQ
VFDQPHPRU\
Uhjlvwhu
Wkhvfdqkdowkpdslvfuhdwhgpdzrugv
Rivwdwxviodlvdgghg
0VVD
Ryhuiorz
1UPO
Dpsoh
Wdeoh
Frgh
IUHH$6&,,PRGH
Vxufhwdeohiurpvwduwfkdudfhuwrwkh
Suhvvlrq
KHQ5LV21ZRUGVGDWDRI5
UDQJHRI3LVWR
Hylfh
LV21WKH$6&,,FKDUDFWHUV
Rqyhuwhg
7KHUHIRUHVHWHYHQYDOXHWRWKHZRUGQXPEHURIFRQYHUVLRQ
Lwlv
Wkhfdvhri
Lvdvvxphgdv
Fuhdwh
Xvhg
Yuvh
6WRS
5675
8QLWV
KDSW6\VWHP&RQILJXUDWLRQá%8
Lviru LGHWRWKHQHW$5 Lvirulqsxwiurpsuhylrxvxqlwdqgwkorzhuvlgh
7KHPDLPXP%WRWDOFDEHOHQJWKEHZHHQXQLWVLVFDEOHOHQJWKLVP P
6HTXHQFH&RQWUROOHU67
Vxsso
3ZHU
7KLV
8VHUF
Hwwkh
5HPDUNV
Ydolg
Edvlfxqlw
3RZHU6XSSO\0RGXOH
Ruhsdqvlrqxqlw
Wkhuqhw
Vshhg
KDQJHGHWHFW&LQSXW
+LJK
Hylfhqhwvfdqqhu
Page
$&LQSXW
5HOD\RXWSXW
7ULDFRXWSXW
$QDORJLQSXW
$6HULDO,QWHUIDFHQDORJRXWSXWELW
Hvfulswlrq
$QDORJRXWSXW
56&RPPRQPHPRU\FKDQQHO99&9PQRWLVRODWHGEHWZHHQSRUW
WKH
8SWRPR726/,1GXOHVPRGHO6
1XPEHURIVWDWLRQVWRWDO
Fdqdfklhyhklkvshhggwdolqndd 1HWZRUN
PV\VWHP
Pnesv
FDSDFLW\
Prgho
0RGXOH
Vshhg
0HGLDDFF $8,FDEOHP
Fdeoh
Lvfkdujh
5DGLDWHG,QWHUIHFH
DVW7 Qvlhqw Urxqglqjuhvlvwdqfh Ω Ruohvv
3RZHUVXSSO\FLUFXLW
9ROWDJH
Vfuhzv
UHTXHQF\
IRU
RFDO,,,DQG2,2LQWHUUSW7LPHULQWH
HFXWLRQVSHHG6
6FDQV\VW
£%8
KDSW6SHFLILFDWLRQV
Lulqjhwhuqdofdeohv
KHQSRLQW,2PRGXOHLQVWDOOHG
9DFPLQXWH9GF
SHU
Lufxlw
Frpprqv
7HUPLQDO&RQQHFWLRQ&20
1RILQSXWSRLQWV
QSXWYROWDJH9GF@
Srlqwwuplqdoeorfn
QWHUQDO&LUFXLW
UFXLW&L
HUDWLQJ&RQGLWLRQ
8PGHE\XMLWVX
3RZHU6XSSO\
RQQHFWRUVWKH0RGXOH
Rpprq
9DFPLQXWH
Wlph
Lkvwqgyrowdjh
HDNDJHFXUUHQWZKHQ2
Frpprqv SRODULW\
LIHFXUYHVRIWKHRXWSXWUHOD\52526
7KHGDWD127 Edvhgrq WLPHVKRRUPRUHIUHJXHQWO\RSHUDWLRQWKHOLIHRI
9DF
Hljkwixvhyrowdjh
7UDQVLVWRU9DFPLQXWJDUUD\
LUFXLW&RQILJXUDWLRQ
HOD\
1RQH
FRQILJXUDWLRQ%XLOWLIXVH
KDSW6SHFLILFDWLRQV
RQQHFWRUVWKH0RGXOH& 13 $8PGH E\ Xmlwvx
RDG3RZHU6XSSO\
Frqiljxudwlrq
7HUPLQDO&RQQHFWLRQV %
Uuhfrqvxpswlrq
Hdndjhfxuuhqwzkhq
HOD\
UUH
9DFPLQXWH
KDSW6SHFLILFDWLRQV
Eorfnuhprydeoh
$RUVV
Qwhuuxsw
Dwdhvfuls
IERWK8DQG/DUH
WR21DQGIURP21WR2
KDQJHGHWHFWLRQHQDEOHUHJLVWHUELWDVVLJQPHQW@
Lqwkhxvhusurjudp
Qrughu
Ghwhfwlrqlvhqdeohg
Zkhq
9GF
Vrodwhhwhuqdosrzhu
Qdorjydoxh
WZH
Vrodwhhwhuqdosrzhu VXSSO\OLQH9GF
Dqgjurxqgwkhvklhogv
Dydlodeoh
Iurprwkhuvljqdoolqhv
Qkhyodjh
QRW
DP$UDQJHK
$QDORJYDOXH
UV H
Hljkw
Lufxlw
PV&RUOHVVFKDQQHO$SSURPVFKDQQHOV
Page
6KLHOGV
ORJLF2XWSXW
0RUH
Iruddor
$QDORJLQSXW
Xoovfdoh
+HDGHFLPDOLJLWDOYDOXH
YDOXH+
HU3
Srzhu
Xuuhqw
7HPSUDWXUHGULIW
Page
20RGXOH6SHFLILFDWLRQ
93&RSWRFRXSOHU
2YHUDOODFFXUDF\
7HPSHURWXUH
Hiihfwlyhudqjh
5HVLVWDQFH‘’ DWDIRUPDW,QSXWZRUGV
Ihfwlgwduxqjh
2YHUDOODFFXUDF\
FRQQHFWLRQZHUVXSSO\,QWHUQDOFLUFXLW
WHUQDO&XUUHQWFRQVXPSWL6SHFLDOIXQFWLRQVLWKVWDQGYROWDJH
Page
Sdlufdeohvirudqdorj
Vljqdov
Qvwdqw
Iurprwkhwhuqdovljqdoolqhv
QDORJ9DOXH9
$QDORJ
$UDQJH$
$&RQYHUVLRQ$QDORJ9DOXHP$
FKDQQHOV9 91$VLGHFRPPRQ
RUPRUHPV9FKDQQHO
LJLWDO9DOXH
3RVLWLYH
Vfrpsohphqwliqhjdwlyh
ELW
KHQ
T3,3
GHE\
Rpsdulvrq
Pvhf Ohvv
Sxov
2SHQ
Vlgh
6HUYRLQWHUIDFHRXWSXW
3XOVHRXWSXW/LQHGULYHU
QSXWFLUFXWV3XOVHLQSXW
KDSW6SHFLILFDWLRQV
20RGXOHV
$QHDPSOHRIVHOHFWLQJDEOHHGHUUHVLVWRU5
FRQWDFWFXUUHQWDWWKHVZLWFK21VWDWHVKRXOGEHFKHFNHG
PD\FXVHD
$OVRZKHQWKHEOHHGHUUHVLVWRULVVHOHFWHGLQWKHDERYHPDQQHUWKH
Idvzlwfkzlwkq
Kljkvshhgvsrqvh
$OV
GURSDW21UHJDUGOHVVRIZKHWKUWKHVZLWFKLV21WKHSXW
\WKH67VFDQ0UHRYHUGLRGHV
Iorz
FXUUHQWDWWKHVHQVRU21UHVLVWRUWHVKRXOGEHFKHFNHG
IHWHUQDOOLQ6HQVRUIRH$&LQSXWEHFRPHORQJHUZLWKXVLQJPXOW
QSXW2 ≥ 21GHOD\WLPH2→21,QSXWUHDGLZKHQDGLQJF\FOH
Frxqwuphdvxuhvdviroorzv
KDQJHWKHLQVWDOODWLRQURXWHRI$&LQSXW
Uhvlvwruwrorzhuwkhlqsxw
3UHFDXWLRQVIRU&2XWSXW0RGXOHV
Khqwkhsrzhufdeoh
Dglrgh
Qwkhderyhfvhlqvhuw
UXK
Wzlfhwkhpdlpxpshdn
ULV
7KLVVXUJH
Lqgxfwlyhordg
EEU
6XUJH
Lvfkdqjhg
5263UHFDXWLRQVIRU5HOD\2XWSXW0RGXOHV
Qsxw
SRZHUVXSSO\IRU
6RPHWLPHV?
Wkhfrqyhuvlrqydox
HGSRZHUVXSSO\IRU
Qdorj 2XWSXW
Hshqlqjrqwkhyrowdjh
3UHFDXWLRQVIRU$QDORJ2XWSXW0RGXOHV
KDSW3UHFDXWLRQVIRU,20RGXOHV
3URYLGH
Rurwkhusduwlfohv
SDQHOV7LVGLVWDQFHPXVWEHDWOHDVWPP,1
Ehvxuhwr
Zlwk
VLGHYHUWLFDOO\RQWKHPRXQWLQJIUDPH
7KHLQVWDOODWLRQGLPHQVLRQVLVDVIROORZV
$SVVLEOIURPKLKOORZ Gxulqjyrowdjhrusrzhutxlspwkh
Edvh
Khfn Srzhu
Dvlfsurf Gxuhi Uprxqwlqjuhprylqjwk Prgxohv
2PRGXOHV
Ludqgfrqqfwfdeohvzlwk Eorfnvrufrqqhfwruv
LULQJRIWKH3XWEDVHWRSWKHPRGXOHERWWRPDORQJOHDGV
2PRGXOHVSRZHU
Rrvhqwkhvfuhzdwwkh
Uhprydowhuplqdoeorfnv
3XVKWKHXSSHUORFNOHYHU
Rqzluhvfrqq
Khfnirusurshu
WRWKH67DQGODWHGHTXLSPHQW
TSDQVLRQRI3XVKPRGXOHWKHPDUNFRYHULQWHUIDFHRQWKHWRS
T33XVKWKHPDUNRQWKHERWWRPRIPRGXOHFRYHUZHUVXSSO\PRGXOH
Qvwdoolqjuhprylqj IWK Prgxohfryhu
Qvwdoowkhfryhulvirurxwsxwwkhqhwxqlw
0RXQWWKHHSQVLRQFDEOHVVHVLQWHUIDFHPRGXOHVRQWKHEDVHV
Irupprupuhyhqwlodwlrq
Urxqglqj
Xdjurxqgwkdwv Xqvwdeohlpshgdqfhvxfkdvsdlqwhgvfuhzvru
67PRXQWLQJSDQHO
Fkdqjhsrzhusdqho
VRO
Dqgfrqqfwwrwkhjurxqgsrlqw
Urxqglqjehwzhhqxqlwv
HGLFDWHG*URXQGJURXQGEDULQWKHSDQHO
SRZUVXSSO\FDEOH.HHS
Iwkh 6HWKHILJXUHDWWKH
3RZHU
RU836VXSSOLHVSRZHUWRWKH6DQG 7REVHUYHZDYHIRUPVRIWKH
9DF
BUDPH&RQQFWHG*URXWRQGWKH7HUXQWPQDOLEDVH*IUDPH
LQH&RQQHFLOWHUWHG*WRURXQGWKHS7RZHUPLQDOHUVXSSO/*\
LULQJRIWKHSRZHUVXSSO\
Whuplqdov
7KHVLHRIWKHWHUPLQDOVFUHZLV08VHDQ
RRWFRQQHFWDQ\
RUOHVIRUWKH0
VXSSO\
Srzhu
+LJKSRZHU
Rihdfk
23UHFDXWLRQVIRU,2PRGXOHV
Vljqovdqgjuxqgkhvklhogdwwkhohdglqjlqsrlqwriwkhfrqwurosdqho
W6HFLRQ R W
Frqqhfwlrq
6KRUWEHWZHQ5$DQG750IRU
7RWDO
FD EOH Ohqjwk Pdnp
SRZHUWREHVXSOLHGVLPXOWDQHRXVO\WRWKHEDVLFXQLWDQGWKH
7XUQRQSRZUI,2PRGXOHVDQGORDGVPXOWDQHRXVO\HSDQVLRQ
2UWXUQRIISRZURIWKHHSDQVLRQXQLWVDIWHUWXUQLQJRIISRZHURIH
3RZHUXSGRZQVHTXHQFH
Vwduwhu
5OLV21GXULQJ581
2ZKHQHPHUJHQF\
Krrwlqj
2XWSXW/V
38PREXOH
Khvshflilhgudjh
3URJUDP
Pruh
Frqglwlrq
Udqjh 2PRGXOHV
Ruohvvsodfhdvvhoighvfkdujhlvjuhdwhudwkljkwhpshudwxuhv
DWWHU\PRGXOHV
0DLQWHQDQFH
Xvhg
7KHUHIUHU H
Srzhu
8QGHU
Khfnwkhgdwhlqvwdoodlrqdguhsdfhxvlqjwkhri
Wkhjxlgh
EDWWHU\EDWWHU\SRFNHWPRGXOH
Rupdnhlwvkw
DF Wlrqvfdqfdxvhiluh RU
Hsorvlrq
Rqrwxvh
XVH5HSODFHPHQW
KDSW0DLQWHQDQFHDQG&KHFNLQJ
PRGXOHLVOLW/LW
7KHLQSXWPRGXOHVDUH
\VWHPHTXLSPHQWWKHHWHUQDOHQ Ylurqphqw
KDYHFDXVHGLWRUGHWDLOVIROORZ6HFWLRQ
KDSW7URXEOHVKRRWLQJ
Ixvhlv
38DQG,2FRPWKH
Wkhfdxvhriwkh
2XW
KDSW7URXEOHVKRRWLQJ
Prgh
VWKH&38PRGXOH
HOHDVH+2/GHYLFH
Khfnlqjxvhusurjudp
OHV
Vshflilflqsxwprgxohlv
7KH,2DOORFDLRQRQWKH
7KH
Eorzq
Hhfxwlqjwklv
PD\EHDEQRUPDO
6DYHWKHSURJUDPRQD+EHIRUH
Rshudwlqri
Lqdf
7KHVXUJH
JURXQGLQJ\VWHP
LUHFW,20RGXOH‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡
6HTXHQFH&RQWUROOHU67