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SAP SE

Annual Report Feb 7, 2011

365_rns_2011-02-07_9afcc982-4ba5-4254-92d5-3ed69605c6d5.pdf

Annual Report

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FINANCIAL INFORMATION FOR THE FOURTH QUARTER AND FULL YEAR 2010

  • Condensed, Preliminary and Unaudited -
Page
Financial Statements (IFRS)
Income Statements - Quarter F 1
Statements of Comprehensive Income - Quarter F 2
Income Statements - Full Year F 3
Statements of Comprehensive Income - Full Year F4
Statements of Financial Position F5
Statements of Changes in Equity F 6
Statements of Cash Flows F7
Supplementary Financial Information
Reconciliations from Non-IFRS Numbers to IFRS Numbers F 8 to F 9
Revenue by Region F 10 to F 11
Share-Based Compensation F 12
Free Cash Flow F12
Days Sales Outstanding(DSO) F 12
Number of Employees F 12
Multi-Quarter Summary F 13
Explanations of Non-IFRS Measures F14 to F16

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP

as at December 31, 2010 and 2009

$\epsilon$ millions 2010 2009 Change in %
Assets
Cash and cash equivalents 3,518 1,884 87
Other financial assets 158 486 $-67$
Trade and other receivables 3,101 2,546 22
Other non-financial assets 180 147 22
Tax assets 186 192 $-3$
Total current assets 7,143 5,255 36
Goodwill 8,378 4,994 68
Intangible assets 2,376 894 >100
Property, plant, and equipment 1,450 1,371 6
Other financial assets 404 284 42
Trade and other receivables 78 52 50
Other non-financial assets 31 35 $-11$
Tax assets 123 91 35
Deferred tax assets 735 398 85
Total non-current assets 13,575 8,119 67
Total assets 20,718 13,374 55
$\epsilon$ millions 2010 2009 Change in %
Equity and liabilities
Trade and other payables 908 638 42
Tax liabilities 160 125 28
Financial liabilities 142 146 $-3$
Other non-financial liabilities 1,727 1,577 10
Provision TomorrowNow litigation 998 93 >100
Other provisions 287 239 20
Provisions 1,285 332 >100
Deferred income 911 598 52
Total current liabilities 5,133 3,416 50
Trade and other payables 50 35 43
Tax liabilities 371 239 55
Financial liabilities 4,449 729 >100
Other non-financial liabilities 11 12 -8
Provisions 291 198 47
Deferred tax liabilities 576 190 >100
Deferred income 63 64 $-2$
Total non-current liabilities 5,811 1,467 >100
Total liabilities 10,944 4,883 >100
Issued capital 1,227 1,226 0
Treasury shares $-1,382$ $-1,320$ $\overline{5}$
Share premium 337 317 $6\overline{6}$
Retained earnings 9,769 8,571 14
Other components of equity $-194$ $-317$ $-39$
Equity attributable to owners of parent 9,757 8,477 15
Non-controlling interests 17 14 $\overline{21}$
Total equity 9,774 8,491 15
Equity and liabilities 20,718 13,374 55

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€ millions, unless otherwise stated Twelve months ended December 31
2010 2009 Change in %
IFRS Adj. Non-IFRS Currency
impact**
Non-IFRS
constant
currency**
IFRS Adj. Non-IFRS IFRS Non-IFRS* Non-IFRS
constant
currency**
Non-IFRS Revenue Numbers
Software revenue 3.265 $\Omega$ 3.265 $-244$ 3.021 2.607 $\Omega$ 2,607 25 25 16
Support revenue 6.135 $\overline{72}$ 6,207 $-313$ 5,894 5,285 11 5.296 16 17 11
Subscription and other software-related service
revenue
394 $\Omega$ 394 $-13$ 381 306 $\mathbf 0$ 306 29 29 $\overline{25}$
Software and software-related service revenue 9.794 72 9.866 $-570$ 9.296 8.198 11 8.209 19 20 13
- thereof SAP excluding Sybase 9.537 $\mathbf 0$ 9,537 $-545$ 8,992 8,198 11 8,209 16 16 10
Consulting revenue 2,197 $\overline{0}$ 2.197 $-118$ 2,079 2,074 $\overline{0}$ 2,074 $\overline{6}$ $\overline{6}$ $\overline{\mathfrak{o}}$
Other service revenue 473 $\Omega$ 473 $-22$ 451 400 $\Omega$ 400 18 18 $\overline{13}$
Professional services and other service revenue 2.670 $\mathbf 0$ 2.670 $-140$ 2.530 2.474 $\mathbf 0$ 2.474 $\overline{\mathbf{8}}$ $\overline{\mathbf{8}}$ $\overline{2}$
Total revenue 12,464 72 12,536 $-709$ 11,827 10,672 11 10,683 17 17 11
Non-IFRS Operating Expense Numbers
Cost of software and software-related services $-1.830$ 199 $-1.631$ $-1.658$ 184 $-1,474$ 10 11
Cost of professional services and other services $-2,070$ $\overline{9}$ $-2.061$ $-1,851$ $\overline{4}$ $-1.847$ 12 $\overline{12}$
Research and development $-1,724$ 5 $-1.719$ $-1,591$ $\overline{4}$ $-1.587$ $\overline{8}$ $\overline{8}$
Sales and marketing $-2,645$ 80 $-2,565$ $-2.199$ 73 $-2,126$ 20 $\overline{21}$
General and administration $-638$ 16 $-622$ $-564$ 3 $-561$ $\overline{13}$ 11
Restructuring $\overline{3}$ $-5$ $-2$ $-198$ $\overline{4}$ $-194$ $< -100$ $-99$
TomorrowNow litigation $-980$ 980 $\mathbf{0}$ $-56$ 56 $\Omega$ >100 $\overline{0}$
Other operating income/expense, net 9 $\mathbf{O}$ 9 33 $\Omega$ 33 $-73$ $-73$
Total operating expenses $-9,875$ 1,283 $-8.592$ 369 $-8.223$ $-8.084$ 327 $-7.756$ 22 11 6
Non-IFRS Profit Numbers
Operating profit 2.589 1.355 3.944 $-340$ 3.604 2.588 339 2.927 $\overline{0}$ 35 23
Other non-operating income/expense, net $-185$ -5 $-190$ $-73$ $-2$ $-75$ >100 >100
Finance income 56 $\mathbf{0}$ 56 32 $\circ$ 32 75 75
Finance costs TomorrowNow litigation $-12$ 12 $\overline{0}$ $\overline{0}$ $\overline{0}$ $\overline{0}$ N/A $\overline{0}$
Other finance costs $-108$ $\overline{0}$ $-108$ $-101$ $\overline{0}$ $-101$ $\overline{7}$ $\overline{7}$
Finance costs $-120$ 12 $-108$ $-101$ $\overline{0}$ $-101$ 19 $\overline{7}$
Other financial gains/losses, net $-3$ $\overline{0}$ $-3$ $-11$ $\overline{0}$ $-11$ $-73$ $-73$
Financial income, net $-67$ 12 $-55$ -80 $\mathbf 0$ $-80$ $-16$ $-31$
Profit before tax 2.337 1.362 3.699 2.435 337 2.772 $-4$ 33
Income tax TomorrowNow litigation 377 $-377$ $\mathbf{0}$ 20 $-20$ $\circ$ >100 $\mathbf 0$
Other income tax expense $-898$ $-107$ $-1,005$ $-705$ $-66$ $-771$ 27 30
Income tax expense $-521$ $-484$ $-1.005$ $-685$ $-86$ $-771$ $-24$ $\overline{30}$
Profit after tax 1.816 878 2.694 1.750 251 2.001 $\overline{\mathbf{4}}$ 35
Profit attributable to non-controlling interests $\overline{2}$ $\mathbf{O}$ $\overline{2}$ $\overline{c}$ $\mathbf 0$ $\overline{c}$ $\mathbf 0$ $\mathbf 0$
Profit attributable to owners of parent 1.814 878 2.692 1.748 251 1.999 $\overline{4}$ 35
Non-IFRS Key Ratios
Operating margin in % 20.8 31.5 30.5 24.3 27.4 $-3.5pp$ 4.1pp 3.1 pp
Effective tax rate in % 22.3 27.2 28.1 27.8 $-5.8pp$ $-0.6pp$
Basic earnings per share, in € 1.53 2.27 1.47 1.68 $\overline{\mathbf{4}}$ 35

* Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.

Starting in 2011, our non-IFRS operating margin will additionally exclude share-based compensation expenses as well as restructuring expenses. Our sharebased compensation expense amounted to € 58 million for 2010 and restructuring expenses were € 2 million. Excluding these two items from the Non-IFRS operating profit in the table above results in the operating profit number under our new Non-IFRS definition and is the basis for the Non-IFRS margin of 31.9% that we have provided as the 2010 comparable number for our profit margin outlook for 2011. The same reconciling items (net of tax of € 44 million) were used in determining the non-IFRS tax rate for 2010 of 27.2% that we have provided as the 2010 comparable number for our Non-IFRS tax rate outlook for 2011.

Differences may exist due to rounding.

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2010 2009 Change in %
IFRS Adj. Non-IFRS Currency
impact**
Non-IFRS
constant
currency**
IFRS Adj. Non-IFRS IFRS Non-IFRS* Non-IFRS
constant
currency**
Software revenue by region
EMEA 1,471 0 1.471 -49 1.422 1.304 0 1,304 13 13 9
Americas 1,247 0 1 2 4 7 $-118$ 1.129 855 $\mathbf 0$ 855 46 46 32
Asia Pacific Japan 548 $\mathbf{o}$ 548 $-78$ 470 449 0 449 22 22 5
Software revenue 3,265 $\mathbf{0}$ 3.265 $-244$ 3.021 2.607 $\mathbf 0$ 2,607 25 25 16
Software and software-related service
revenue by region
Germany 1,564 $\mathbf{0}$ 1,564 $\mathbf{O}$ 1,564 1,439 $\circ$ 1,439 9 9 9
Rest of EMEA 3,319 21 3,339 $-125$ 3,214 2,897 $\overline{4}$ 2,901 15 15 11
Total EMEA 4,883 21 4.903 $-125$ 4,778 4.336 4 4,340 13 13 10
United States 2,497 40 2,537 $-151$ 2.386 2,018 6 2,024 24 25 18
Rest of Americas 930 5 935 $-98$ 837 700 $\mathbf 0$ 700 33 34 20
Total Americas 3,427 45 3,472 $-250$ 3.222 2,718 6 2,724 26 27 18
Japan 448 3 451 $-54$ 397 404 $\mathbf 0$ 404 11 12 $-2$
Rest of Asia Pacific Japan 1.037 3 1.040 $-141$ 899 740 $\mathbf{1}$ 741 40 40 21
Total Asia Pacific Japan 1,485 6 1.491 $-195$ 1,296 1.144 $\mathbf{1}$ 1,145 30 30 13
Software and software-related service
revenue
9,794 72 9.866 -570 9.296 8,198 11 8,209 19 20 $\overline{13}$
Total revenue by region
Germany 2,195 $\mathbf{0}$ 2,195 $-1$ 2.194 2,029 $\mathbf 0$ 2.029 8 8 8
Rest of EMEA 4,068 21 4.089 $-154$ 3.935 3,614 $\overline{4}$ 3.618 13 13 9
Total EMEA 6.263 21 6.283 $-154$ 6.129 5.643 4 5.647 11 11 9
United States 3,243 40 3,284 $-192$ 3,092 2,695 6 2,701 20 22 14
Rest of Americas 1,192 5 1,197 $-130$ 1.067 925 $\mathbf 0$ 925 29 29 15
Total Americas 4,435 45 4.480 $-322$ 4.158 3.620 6 3,626 23 24 15
Japan 513 3 516 $-61$ 455 476 $\circ$ 476 8 8 $-4$
Rest of Asia Pacific Japan 1,253 3 1,256 $-171$ 1,085 933 $\mathbf{1}$ 934 34 34 16
Total Asia Pacific Japan 1,766 6 1,772 $-233$ 1,539 1,409 $\mathbf{1}$ 1,410 25 26 9
Total revenue 12,464 72 12,536 $-709$ 11,827 10,672 11 10,683 17 17 11

* Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.

Differences may exist due to rounding.

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MULTI-QUARTER SUMMARY (IFRS and non-IFRS; preliminary und unaudited)

€ millions, unless otherwise stated O4/2010 Q3/2010 O2/2010 O1/2010 Q4/2009 Q3/2009 O2/2009 O1/2009
Software revenue (IFRS) 1.507 656 637 464 1.120 525 543 418
Revenue adjustment* $\mathbf{O}$ $\mathbf 0$ $\circ$ $\circ$ $\Omega$ $\mathbf 0$ 0 $\mathbf{0}$
Software revenue (non-IFRS) 1.507 656 637 464 1,120 525 543 418
Support revenue (IFRS) 1.656 1,559 1,526 1.394 1.364 1.333 1,337 1,252
Revenue adjustment* 36 36 $\Omega$ 0 $\Omega$ $\Omega$ 0 11
Support revenue (non-IFRS) 1.692 1,595 1,526 1,394 1.364 1.333 1,337 1.263
Subscription and other software-related
service revenue (IFRS)
110 101 95 89 82 79 73 71
Revenue adjustment* $\mathbf{O}$ $\mathbf 0$ $\mathbf 0$ $\mathbf 0$ $\mathbf 0$ $\mathbf 0$ $\mathsf O$ $\mathsf{O}$
Subscription and other software-related
service revenue (non-IFRS)
110 101 95 89 82 79 $\overline{73}$ 71
Software and software-related service revenue
(IFRS)
3.273 2,316 2,258 1,947 2.566 1.937 1,953 1,741
Revenue adjustment* 36 36 $\mathbf 0$ $\circ$ $\mathbf 0$ $\circ$ $\mathbf 0$ 11
Software and software-related service revenue
(non-IFRS)
3.309 2,352 2,258 1.947 2.566 1.937 1,953 1,752
Total revenue (IFRS) 4.058 3.003 2.894 2.509 3,190 2.508 2,576 2,397
Revenue adjustment* 36 36 $\mathbf 0$ $\Omega$ $\Omega$ $\mathbf 0$ 0 11
Total revenue (non-IFRS) 4.094 3,039 2,894 2.509 3.190 2,508 2,576 2,408
Operating profit (IFRS) 543 716 774 557 1,022 619 641 307
Revenue adjustment* 36 36 $\Omega$ $\Omega$ $\mathbf 0$ $\mathbf 0$ $\Omega$ 11
Expense adjustment* 1,031 131 66 54 113 68 69 78
Operating profit (non-IFRS) 1,610 883 840 612 1.134 687 710 396
Operating margin (IFRS) 13.4 23.8 26.7 22.2 32.0 24.7 24.9 12.8
Operating margin (non-IFRS) 39.3 29.1 29.0 24.4 35.5 27.4 27.6 16.4
Effective tax rate (IFRS) 3.1 27.3 27.4 25.7 31.1 20.5 28.5 31.7
Effective tax rate (non-IFRS) 27.2 28.7 26.8 25.3 30.5 21.0 28.1 30.1
Basic earnings per share, in € (IFRS) 0.37 0.42 0.41 0.33 0.57 0.38 0.36 0.17
Basic earnings per share, in € (non-IFRS) 0.93 0.51 0.46 0.37 0.64 0.42 0.40 0.22
Headcount** 53.513 52,921 48,021 47.598 47.584 47.810 48,567 49,922

* Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures for details.

** in full-time equivalents at quarter end

Differences may exist due to rounding.

/A95+7+=387< 80 787\$30;< 6/+<>;/<

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JP MPWTPaP _SL_ _SP ^'[[WPXPY_LW ST^_Z]TNLW LYO []Z^[PN_TaP YZY'?<FG QTYLYNTLW TYQZ]XL_TZY []P^PY_PO TY _ST^ OZN'XPY_ []ZaTOP^ '^PQ'W ^'[[WPXPY_LW TYQZ]XL_TZY _Z TYaP^_Z]^ MPNL'^P T_ T^ LW^Z '^PO Md Z'] XLYLRPXPY_ f TY LOOT_TZY _Z QTYLYNTLW OL_L []P[L]PO TY LNNZ]OLYNP bT_S ?<FG f _Z L__LTY L XZ]P _]LY^[L]PY_ 'YOP]^_LYOTYR ZQ Z'] [L^_ [P]QZ]XLYNP LYO Z'] Q'_']P ]P^'W_^( 7_ _SP MPRTYYTYR ZQ ,*+* _SP YZY'?<FG XPL^']P^ #L^ OPQTYPO MPWZb\$ ]P[WLNPO _SP YZY'=77D XPL^']P^ bP '^PO 'Y_TW _SP _P]XTYL_TZY ZQ Z'] I(G( =77D ]P[Z]_TYR( G[PNTQTNLWWd& bP '^P _SP^P YZY'?<FG XPL^']P^ NZY^T^_PY_Wd TY Z'] [WLYYTYR LYO QZ]PNL^_TYR& ]P[Z]_TYR& NZX[PY^L_TZY& LYO Pc_P]YLW NZXX'YTNL_TZY L^ QZWWZb^4

  • z C'] XLYLRPXPY_ []TXL]TWd '^P^ _SP^P YZY'?<FG XPL^']P^ ]L_SP] _SLY ?<FG XPL^']P^ L^ _SP ML^T^ QZ] XLVTYR QTYLYNTLW& ^_]L_PRTN LYO Z[P]L_TYR OPNT^TZY^(
  • z HSP aL]TLMWP ]PX'YP]L_TZY NZX[ZYPY_^ ZQ Z'] ;cPN'_TaP 8ZL]O XPXMP]^ LYO PX[WZdPP^ L]P ML^PO ZY YZY'?<FG ]PaPY'P LYO YZY'?<FG Z[P]L_TYR []ZQT_ ]L_SP] _SLY _SP ]P^[PN_TaP ?<FG XPL^']P^(
  • z HSP LYY'LW M'ORP_TYR []ZNP^^ QZ] LWW XLYLRPXPY_ 'YT_^ T^ ML^PO ZY YZY'?<FG ]PaPY'P^ LYO YZY'?<FG Z[P]L_TYR []ZQT_ Y'XMP]^ ]L_SP] _SLY _SP ]P^[PN_TaP ?<FG Y'XMP]^ bT_S NZ^_^ ^'NS L^ ^SL]P'ML^PO NZX[PY^L_TZY LYO ]P^_]'N_']TYR ZYWd MPTYR NZY^TOP]PO ZY L 9ZX[LYd WPaPW(
  • z 7WW QZ]PNL^_ LYO [P]QZ]XLYNP ]PaTPb^ bT_S LWW ^PYTZ] XLYLRP]^ RWZMLWWd L]P ML^PO ZY _SP^P YZY'?<FG XPL^']P^& ]L_SP] _SLY _SP ]P^[PN_TaP ?<FG Y'XMP]^(
  • z 9ZX[LYd'TY_P]YLW _L]RP_ ^P__TYR LYO R'TOLYNP []ZaTOPO _Z _SP NL[T_LW XL]VP_^ L]P MZ_S ML^PO ZY YZY'?<FG ]PaPY'P^ LYO YZY'?<FG []ZQT_ XPL^']P^ ]L_SP] _SLY _SP ]P^[PN_TaP ?<FG Y'XMP]^(

JP MPWTPaP _SL_ Z'] YZY'?<FG XPL^']P^ L]P '^PQ'W _Z TYaP^_Z]^ QZ] _SP QZWWZbTYR ]PL^ZY^4

  • z HSP YZY'?<FG XPL^']P^ []ZaTOP TYaP^_Z]^ bT_S TY^TRS_ TY_Z XLYLRPXPY_g^ OPNT^TZY'XLVTYR ^TYNP XLYLRPXPY_ '^P^ _SP^P YZY'?<FG XPL^']P^ _Z ]'Y Z'] M'^TYP^^ LYO XLVP QTYLYNTLW& ^_]L_PRTN LYO Z[P]L_TYR OPNT^TZY^(
  • z HSP YZY'?<FG XPL^']P^ []ZaTOP TYaP^_Z]^ bT_S LOOT_TZYLW TYQZ]XL_TZY _SL_ PYLMWP^ L NZX[L]T^ZY ZQ dPL]'ZaP]'dPL] Z[P]L_TYR [P]QZ]XLYNP Md PWTXTYL_TYR NP]_LTY OT]PN_ PQQPN_^ ZQ LN\'T^T_TZY^(

C'] YZY'?<FG QTYLYNTLW XPL^']P^ ]PQWPN_ LOU'^_XPY_^ ML^PO ZY _SP T_PX^ MPWZb& L^ bPWW L^ LOU'^_XPY_^ QZ] _SP ]PWL_PO TYNZXP _Lc PQQPN_^4

7ON\$30;< ;GVGNUG

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IYOP] ?<FG& bP ]PNZ]O L_ QLT] aLW'P _SP ^'[[Z]_ NZY_]LN_^ TY PQQPN_ L_ _SP _TXP PY_T_TP^ bP]P LN\'T]PO( 9ZY^P\'PY_Wd& Z'] ?<FG ^'[[Z]_ ]PaPY'P& Z'] ?<FG ^ZQ_bL]P LYO ^ZQ_bL]P']PWL_PO ^P]aTNP ]PaPY'P LYO Z'] ?<FG _Z_LW ]PaPY'P QZ] [P]TZO^ ^'M^P\'PY_ _Z LN\'T^T_TZY^ OZ YZ_ ]PQWPN_ _SP Q'WW LXZ'Y_ ZQ ^'[[Z]_ ]PaPY'P _SL_ bZ'WO SLaP MPPY ]PNZ]OPO QZ] _SP^P ^'[[Z]_ NZY_]LN_^ LM^PY_ _SP^P LN\'T^T_TZY^ Md G7D( 7OU'^_TYR ]PaPY'P Y'XMP]^ QZ] _ST^ ]PaPY'P TX[LN_ []ZaTOP^ LOOT_TZYLW TY^TRS_ TY_Z _SP NZX[L]LMTWT_d LN]Z^^ [P]TZO^ ZQ Z'] ZYRZTYR [P]QZ]XLYNP(

7ON\$30;< 8PGRCTKNI /XPGNSG

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  • z 7N\'T^T_TZY']PWL_PO NSL]RP^
  • o 7XZ]_TeL_TZY Pc[PY^P)TX[LT]XPY_ NSL]RP^ ZQ TY_LYRTMWP^ LN\'T]PO TY M'^TYP^^ NZXMTYL_TZY^ LYO NP]_LTY ^_LYOLWZYP LN\'T^T_TZY^ ZQ TY_PWWPN_'LW []Z[P]_d #TYNW'OTYR [']NSL^PO TY'[]ZNP^^ ]P^PL]NS LYO OPaPWZ[XPY_\$
  • o FP^_]'N_']TYR Pc[PY^P^ LYO ^P__WPXPY_^ ZQ []P'PcT^_TYR ]PWL_TZY^ST[^ TYN']]PO TY NZYYPN_TZY bT_S L M'^TYP^^ NZXMTYL_TZY
  • o 7N\'T^T_TZY']PWL_PO _ST]O'[L]_d Pc[PY^P^
  • z :T^NZY_TY'PO LN_TaT_TP^4 FP^'W_^ ZQ _SP OT^NZY_TY'PO Z[P]L_TZY^ _SL_ \'LWTQd L^ ^'NS 'YOP] ?<FG TY LWW ]P^[PN_^ PcNP[_ _SL_ _SPd OZ YZ_ ]P[]P^PY_ L XLUZ] WTYP ZQ M'^TYP^^

HSP Z[P]L_TYR []ZQT_ LYO Z[P]L_TYR XL]RTY Z'_WZZV []ZaTOPO QZ] ,*++ LYO _SP NZX[L]LMWP ,*+* Z[P]L_TYR []ZQT_ LYO Z[P]L_TYR XL]RTY Y'XMP]^ L]P ML^PO ZY LY '[OL_PO YZY'?<FG OPQTYT_TZY bSTNS LOOT_TZYLWWd PcNW'OP^ _SP QZWWZbTYR4

  • z ;c[PY^P^ ]PWL_TYR _Z ^SL]P'ML^PO NZX[PY^L_TZY
  • z FP^_]'N_']TYR Pc[PY^P^

7ON\$30;< 8PGRCTKNI 9ROHKT# NON\$30;< 8PGRCTKNI 6CRIKN# NON\$30;< 9ROHKT +HTGR =CX CNF NON\$30;< /CRNKNIS 9GR <JCRG

C[P]L_TYR []ZQT_& Z[P]L_TYR XL]RTY& []ZQT_ LQ_P] _Lc LYO PL]YTYR^ [P] ^SL]P TY _ST^ OZN'XPY_ TOPY_TQTPO L^ YZY'?<FG Z[P]L_TYR []ZQT_& YZY'?<FG Z[P]L_TYR XL]RTY& YZY'?<FG []ZQT_ LQ_P] _Lc LYO YZY'?<FG PL]YTYR^ [P] ^SL]P SLaP MPPY LOU'^_PO Q]ZX _SP ]P^[PN_TaP ?<FG XPL^']P^ Md LOU'^_TYR QZ] _SP LMZaP XPY_TZYPO YZY'?<FG ]PaPY'P^ LYO YZY'?<FG Z[P]L_TYR Pc[PY^P^(

JP PcNW'OP NP]_LTY LN\'T^T_TZY']PWL_PO Pc[PY^P^ QZ] _SP ['][Z^P ZQ NLWN'WL_TYR YZY'?<FG Z[P]L_TYR []ZQT_& YZY'?<FG Z[P]L_TYR XL]RTY& YZY'?<FG []ZQT_ LQ_P] _Lc LYO YZY'?<FG PL]YTYR^ [P] ^SL]P bSPY PaLW'L_TYR _SP NZY_TY'TYR Z[P]L_TZYLW [P]QZ]XLYNP ZQ _SP 9ZX[LYd MPNL'^P _SP^P Pc[PY^P^ RPYP]LWWd NLYYZ_ MP NSLYRPO Z] TYQW'PYNPO Md XLYLRPXPY_ LQ_P] _SP ]PWPaLY_ LN\'T^T_TZY Z_SP] _SLY Md OT^[Z^TYR ZQ _SP LN\'T]PO L^^P_^( GTYNP XLYLRPXPY_ L_ WPaPW^ MPWZb _SP ;cPN'_TaP 8ZL]O SL^ YZ TYQW'PYNP ZY _SP^P Pc[PY^P^ bP RPYP]LWWd OZ YZ_ NZY^TOP] _SP^P Pc[PY^P^ QZ] _SP ['][Z^P ZQ PaLW'L_TYR _SP [P]QZ]XLYNP ZQ XLYLRPXPY_ 'YT_^(

7OOT_TZYLWWd& Z'] YZY'?<FG XPL^']P^ SLaP MPPY LOU'^_PO Q]ZX _SP ]P^[PN_TaP ?<FG XPL^']P^ QZ] _SP ]P^'W_^ ZQ _SP OT^NZY_TY'PO Z[P]L_TZY^ _SL_ \'LWTQd L^ ^'NS 'YOP] ?<FG TY LWW ]P^[PN_^ PcNP[_ _SL_ _SPd OZ YZ_ ]P[]P^PY_ L XLUZ] WTYP ZQ M'^TYP^^( JP ]PQP] _Z _SP^P LN_TaT_TP^ L^ hOT^NZY_TY'PO LN_TaT_TP^(i IYOP] I(G( =77D& bSTNS bP []ZaTOPO 'Y_TW ,**3& bP []P^PY_PO _SP ]P^'W_^ ZQ Z[P]L_TZY^ ZQ _SP HZXZ]]ZbBZb PY_T_TP^ L^ OT^NZY_TY'PO Z[P]L_TZY^( IYOP] ?<FG& ]P^'W_^ ZQ OT^NZY_TY'PO Z[P]L_TZY^ XLd ZYWd MP []P^PY_PO L^ OT^NZY_TY'PO Z[P]L_TZY^ TQ L ^P[L]L_P XLUZ] WTYP ZQ M'^TYP^^ Z] RPZR]L[STNLW L]PL ZQ Z[P]L_TZY^ T^ OT^NZY_TY'PO( C'] HZXZ]]ZbBZb Z[P]L_TZY^ bP]P YZ_ L ^P[L]L_P XLUZ] WTYP ZQ M'^TYP^^ LYO _S'^ OTO YZ_ \'LWTQd QZ] ^P[L]L_P []P^PY_L_TZY 'YOP] ?<FG( JP MPWTPaP _SL_ _ST^ LOOT_TZYLW YZY'?<FG LOU'^_XPY_ _Z Z'] ?<FG Y'XMP]^ QZ] _SP ]P^'W_^ ZQ Z'] OT^NZY_TY'PO HZXZ]]]ZbBZb LN_TaT_TP^ T^ '^PQ'W _Z TYaP^_Z]^ QZ] _SP QZWWZbTYR ]PL^ZY^4

  • z :P^[T_P _SP XTR]L_TZY Q]ZX I(G( =77D _Z ?<FG& bP bTWW NZY_TY'P _Z TY_P]YLWWd _]PL_ _SP NPL^PO HZXZ]]ZbBZb LN_TaT_TP^ L^ OT^NZY_TY'PO LN_TaT_TP^ LYO _S'^ bTWW NZY_TY'P _Z PcNW'OP [Z_PY_TLW Q'_']P HZXZ]]ZbBZb ]P^'W_^& bSTNS L]P Pc[PN_PO _Z XLTYWd NZX[]T^P ZQ Pc[PY^P^ TY NZYYPN_TZY bT_S _SP C]LNWP WLb^'T_& Q]ZX Z'] TY_P]YLW XLYLRPXPY_ ]P[Z]_TYR& [WLYYTYR& QZ]PNL^_TYR& LYO NZX[PY^L_TZY [WLY^( HSP]PQZ]P& LOU'^_TYR Z'] YZY'?<FG XPL^']P^ QZ] _SP ]P^'W_^ ZQ _SP OT^NZY_TY'PO HZXZ]]ZbBZb LN_TaT_TP^ []ZaTOP^ TY^TRS_ TY_Z _SP QTYLYNTLW XPL^']P^ _SL_ G7D '^P^ TY_P]YLWWd(
  • z 8d LOU'^_TYR _SP YZY'?<FG Y'XMP]^ QZ] _SP ]P^'W_^ Q]ZX Z'] OT^NZY_TY'PO HZXZ]]ZbBZb Z[P]L_TZY^& _SP YZY'?<FG Y'XMP]^ L]P XZ]P NZX[L]LMWP _Z _SP YZY'=77D XPL^']P^ _SL_ G7D '^PO _S]Z'RS _SP PYO ZQ ,**3& bSTNS XLVP G7Dg^ [P]QZ]XLYNP XPL^']P^ MPQZ]P LYO LQ_P] _SP Q'WW ?<FG XTR]L_TZY PL^TP] _Z NZX[L]P(

HSP Z[P]L_TYR []ZQT_ LYO Z[P]L_TYR XL]RTY Z'_WZZV []ZaTOPO QZ] ,*++ LYO _SP NZX[L]LMWP ,*+* Z[P]L_TYR []ZQT_ LYO Z[P]L_TYR XL]RTY Y'XMP]^ L]P ML^PO ZY LY '[OL_PO YZY'?<FG OPQTYT_TZY bSTNS LOOT_TZYLWWd PcNW'OP^ _SP Pc[PY^P^ ]PWL_TYR _Z ^SL]P'ML^PO NZX[PY^L_TZY LYO ]P^_]'N_']TYR Pc[PY^P^ Q]ZX Z'] YZY'?<FG Y'XMP]^( HSP^P Pc[PY^P^ L]P LWWZNL_PO LYO XLYLRPO ZY NZ][Z]L_P WPaPW ZYWd LYO L]P YZ_ QLN_Z]PO TY Z'] XLYLRPXPY_g^ aTPb bSPY XLYLRTYR _SP NZY_TY'TYR Z[P]L_TZYLW [P]QZ]XLYNP ZQ _SP 9ZX[LYd(

JP TYNW'OP _SP ]PaPY'P LOU'^_XPY_^ Z'_WTYPO LMZaP LYO PcNW'OP _SP Pc[PY^P LOU'^_XPY_^ bSPY XLVTYR OPNT^TZY^ _Z LWWZNL_P ]P^Z']NP^& MZ_S ZY L 9ZX[LYd WPaPW LYO L_ WZbP] WPaPW^ ZQ _SP Z]RLYTeL_TZY( ?Y LOOT_TZY& bP '^P _SP^P YZY'?<FG XPL^']P^ _Z RLTY L MP__P] 'YOP]^_LYOTYR ZQ _SP 9ZX[LYdg^ NZX[L]L_TaP Z[P]L_TYR [P]QZ]XLYNP Q]ZX [P]TZO _Z [P]TZO( JP MPWTPaP _SL_ Z'] YZY'?<FG QTYLYNTLW XPL^']P^ OP^N]TMPO LMZaP SLaP WTXT_L_TZY^& bSTNS TYNW'OP M'_ L]P YZ_ WTXT_PO _Z _SP QZWWZbTYR4

  • z HSP PWTXTYL_PO LXZ'Y_^ XLd MP XL_P]TLW _Z '^(
  • z JT_SZ'_ MPTYR LYLWdePO TY NZYU'YN_TZY bT_S _SP NZ]]P^[ZYOTYR ?<FG XPL^']P^ _SP YZY'?<FG XPL^']P^ L]P YZ_ TYOTNL_TaP ZQ Z'] []P^PY_ LYO Q'_']P [P]QZ]XLYNP& QZ]PXZ^_ QZ] _SP QZWWZbTYR ]PL^ZY^4
  • o JSTWP Z'] YZY'?<FG []ZQT_ Y'XMP]^ ]PQWPN_ _SP PWTXTYL_TZY ZQ NP]_LTY LN\'T^T_TZY']PWL_PO Pc[PY^P^& YZ PWTXTYL_TZY^ L]P XLOP QZ] _SP LOOT_TZYLW ]PaPY'P^ LYO Z_SP] ]PaPY'P^ _SL_ ]P^'W_ Q]ZX _SP LN\'T^T_TZY^(
  • o HSP LN\'T^T_TZY']PWL_PO NSL]RP^ _SL_ bP PWTXTYL_P TY OP]TaTYR Z'] YZY'?<FG []ZQT_ Y'XMP]^ L]P WTVPWd _Z ]PN'] ^SZ'WO G7D PY_P] TY_Z XL_P]TLW M'^TYP^^ NZXMTYL_TZY^ TY _SP Q'_']P(
  • o HSP LN\'T^T_TZY']PWL_PO LXZ]_TeL_TZY Pc[PY^P _SL_ bP PWTXTYL_P TY OP]TaTYR Z'] YZY'?<FG []ZQT_ Y'XMP]^ T^ L ]PN']]TYR Pc[PY^P _SL_ bTWW TX[LN_ Z'] QTYLYNTLW [P]QZ]XLYNP TY Q'_']P dPL]^(
  • o HSP ]PaPY'P LOU'^_XPY_ QZ] _SP QLT] aLW'P LNNZ'Y_TYR ZQ _SP LN\'T]PO PY_T_TP^g ^'[[Z]_ NZY_]LN_^ LYO _SP Pc[PY^P LOU'^_XPY_ QZ] LN\'T^T_TZY']PWL_PO NSL]RP^ OZ YZ_ L]T^P Q]ZX L NZXXZY NZYNP[_'LW ML^T^( HST^ T^ MPNL'^P _SP ]PaPY'P LOU'^_XPY_ LTX^ _Z TX[]ZaP _SP NZX[L]LMTWT_d ZQ _SP TYT_TLW [Z^_'LN\'T^T_TZY [P]TZO bT_S Q'_']P [Z^_'LN\'T^T_TZY [P]TZO^ bSTWP _SP Pc[PY^P LOU'^_XPY_ LTX^ _Z TX[]ZaP _SP NZX[L]LMTWT_d MP_bPPY [Z^_'LN\'T^T_TZY [P]TZO^ LYO []P'LN\'T^T_TZY [P]TZO^( HST^ ^SZ'WO [L]_TN'WL]Wd MP NZY^TOP]PO bSPY PaLW'L_TYR Z'] YZY'?<FG Z[P]L_TYR []ZQT_ LYO YZY'?<FG Z[P]L_TYR XL]RTY Y'XMP]^ L^ _SP^P NZXMTYP Z'] YZY'?<FG ]PaPY'P LYO YZY' ?<FG Pc[PY^P^ OP^[T_P _SP LM^PYNP ZQ L NZXXZY NZYNP[_'LW ML^T^(
  • o C'] OT^NZY_TY'PO LN_TaT_TP^ NZ'WO ]P^'W_ TY ^TRYTQTNLY_ NL^S Z'_QWZb^(
  • o HSP aLW'L_TZY ZQ Z'] NL^S'^P__WPO ^SL]PO ML^PO [LdXPY_ [WLY^ NZ'WO QW'N_'L_P ^TRYTQTNLY_Wd O'P _Z _SP OPaPWZ[XPY_ ZQ Z'] ^SL]P []TNP LYO Z_SP] [L]LXP_P]^ '^PO TY _SP aLW'L_TZY ZQ _SP^P [WLY^
  • o JP SLaP TY _SP [L^_ LYO TY_PYO _Z NZY_TY'P TY _SP Q'_']P _Z T^^'P ^SL]P ML^PO NZX[PY^L_TZY LbL]O^ _Z Z'] PX[WZdPP^ PaP]d dPL]( HS'^ Z'] ^SL]P'ML^PO NZX[PY^L_TZY Pc[PY^P L]P ]PN']]TYR LW_SZ'RS _SP LXZ'Y_^ '^'LWWd NSLYRP Q]ZX [P]TZO _Z [P]TZO(

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