%XLOGLQJD5HTXLUHPHQWV(QJLQHHULQJ0HWKRGRORJ\IRU 6RIWZDUH3URGXFW/LQHV
7RP+X\VHJRPV0RQLTXH6QRHFN*XLGR'HGHQH
)DFXOW\RI%XVLQHVVDQG(FRQRPLFV0DQDJHPHQW,QIRUPDWLRQ6\VWHPV*URXS.8/HXYHQ 1DDPVHVWUDDW/HXYHQ%HOJLXP
^7RP+X\VHJRPV0RQLTXH6QRHFN*XLGR'HGHQH`#HFRQNXOHXYHQEH
$EVWUDFW6RIWZDUHSURGXFW OLQHVDUHD JUHDWZD\WR DFKLHYHUHXVDELOLW\ ZKHQ WKH\ DUH FRUUHFWO\ LPSOHPHQWHG 7KHRULHVDERXW WKHSURGXFW OLQH SDUDGLJP DO UHDG\H[LVWIRUPXOWLSOHGHFDGHVEXWHPSLULFDOUHVHDUFKDQGUHSRUWVRIUHDOOLIH VXFFHVVVWRULHV DUH VWLOOVFDUFH &RPSDQLHV RIWHQ VWLOO VWUXJJOH WR LPSOHPHQW D VRIWZDUHSURGXFWOLQHEHFDXVHWKH\GRQ¶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
.H\ZRUGV9DULDELOLW\UHTXLUHPHQWVHQJLQHHULQJFDVHVWXG\UHVHDUFKKDUPR QL]DWLRQ
,QWURGXFWLRQ
7KHILQDQFLDOFULVLVKDVLQWHQVLILHGWKHVWULYHIRUFRVWUHGXFWLRQ7KHVRIWZDUHSURGXFW OLQHHQJLQHHULQJ63/(SDUDGLJPRIIHUVDPHDQVWRDFKLHYHWKLVFRVWUHGXFWLRQLQVLGH WKHGRPDLQRIVRIWZDUHHQJLQHHULQJWKURXJKWKHV\VWHPDWLFUHXVHRISURGXFWOLQHFRP SRQHQWV63/(KDVDOUHDG\EHHQVWXGLHGIRURYHUWZRGHFDGHVVRIWZDUHSURGXFWOLQHV DUHILUVWPHQWLRQHGLQE\.DQJHWDODVDSDUWRIWKHLU)2'$VSHFLILFDWLRQ>@$
JRRG GHILQLWLRQ RI WKLV VRIWZDUH SURGXFW OLQH FRQFHSW FDQ EH IRXQG LQ WKH ZRUN RI
&OHPHQWVHWDO>@³$VRIWZDUHSURGXFW OLQH LVDVHW RI VRIWZDUHLQWHQVLYH V\VWHPV VKDULQJDFRPPRQPDQDJHGVHWRIIHDWXUHVWKDWVDWLVI\WKHVSHFLILFQHHGVRIDSDUWLFX ODU PDUNHW VHJPHQW RU PLVVLRQ DQG WKDW DUH GHYHORSHG IURP D FRPPRQ VHW RI FRUH DVVHWVLQDSUHVFULEHGZD\´7KH63/(SDUDGLJPUHTXLUHVDVKLIWDZD\IURPWKLQNLQJ DERXW V\VWHP GHYHORSPHQW RQ D V\VWHP E\ V\VWHP EDVLV DV LQ WUDGLWLRQDO VRIWZDUH HQJLQHHULQJWRZDUGVWKLQNLQJLQWHUPVRIGHYHORSPHQWRISURGXFWIDPLOLHV$SURGXFW IDPLO\ LV D VRPHKRZ UHODWHG JURXS RI VRIWZDUH V\VWHPV 63/( IRFXVHV RQ WKHVH
JURXSVRIUHODWHGKLJKO\DOLNHVRIWZDUHDSSOLFDWLRQVDQGWKHFRQFHSWRIYDULDELOLW\LV XVHGWRVLWXDWHWKHGLIIHUHQFHVEHWZHHQWKHVHVRIWZDUHDSSOLFDWLRQV
9DULDELOLW\LVRQHRIWKHNH\FRQFHSWVLQ63/(:LWKRXWYDULDELOLW\WKH63/(SD UDGLJPZRXOGQRWEHFDSDEOHWRDFKLHYHDKLJKOHYHORIFRVWUHGXFWLRQ7KHYDULDELOLW\
LQWKHVRIWZDUHSURGXFWOLQHDOORZVWKHSURGXFWOLQHWREHUHXVHGLQVLPLODU\HWVOLJKWO\
GLIIHUHQWFRQWH[WV$OWKRXJKWKHH[DFWVDPHVRIWZDUHV\VWHPFRXOGEHXVHGLQPDQ\
GLIIHUHQWFRQWH[WVWKLVZRXOG\LHOGDVXERSWLPDOVROXWLRQ0RVWRIWKHWLPHWKHVRIW ZDUHV\VWHPZRXOG QRW ILWLWVFRQWH[W SHUIHFWO\DQGDGGLWLRQDOHIIRUWVZRXOG EHUH TXLUHGWRXVHLW,QWKLVZD\WKHFRVWEHQHILWVDFKLHYHGE\WKHUHXVHRIDVLQJOHDSSOLFD WLRQZLOOEHSDUWO\DQQLKLODWHGE\WKHVXERSWLPDOUHVXOWVRIWKHGLIIHUHQWLPSOHPHQWD WLRQVRIWKHVLQJOHV\VWHP
'HVSLWHWKHIDFWWKDWYDULDELOLW\LVRIXWPRVWLPSRUWDQFHWRWKHVXFFHVVIXOXVHRIWKH 63/(SDUDGLJPWKHDEVHQFHRIH[SOLFLWUHDVRQLQJDERXWYDULDELOLW\VHHPVWREHRQHRI WKHUHDVRQVZK\DVRIWZDUHSURGXFWOLQHSURMHFWIDLOVLQSUDFWLFH7KLVREVHUYDWLRQZDV PDGHLQWKHH[SORUDWRU\VWXG\RIVRPHSURMHFWVDWDQLQWHUQDWLRQDOEDQNDQGLQVXUDQFH FRPSDQ\ 7KH ODFN RIDFOHDU IRFXV RQ YDULDELOLW\ GXULQJ WKHHDUO\ SKDVHV RI63/(
GRRPHGWKHSURMHFWVHYHQEHIRUHWKH\ZHUHIXOO\LPSOHPHQWHG7KHUHDVRQEHKLQGWKH IDFWWKDWYDULDELOLW\LVRYHUORRNHGLQSUDFWLFHLVQRWFOHDUEXWDZDUHQHVVDERXWYDULD ELOLW\ PXVW EH FUHDWHG LQ RUGHU WR LPSURYH WKH UHVXOWV RI DQ\ IXWXUH 63/( SURMHFWV 7KLVLVZK\ZHZDQWWRGHYHORSDPHWKRGRORJ\DERXWWKHYDULDELOLW\FRQFHSWLQ63/(
VRWKDWZKHQDVRIWZDUHSURGXFWOLQHLVFUHDWHGLWZLOOKDYHDFKDQFHWRVXFFHHG 7KHSDSHUFRQVLVWVRIGLIIHUHQWSDUWV6HFWLRQGHILQHVWKHSUREOHPZHZLVKWRDG GUHVVDQGLQYHVWLJDWHVUHODWHGZRUN,QVHFWLRQZHGHILQHWKHUHVHDUFKSODQDQGWKH W\SH RI UHVHDUFK ,Q WKH VHFWLRQV WR ZH WKHQ VXEVHTXHQWO\ SUHVHQW WKH GLIIHUHQW DVSHFWVRIWKHIUDPHZRUNZHZLVKWRGHYHORSRXUPHWKRGRORJ\XSRQ6HFWLRQJLYHV DVXPPDU\DQGDFRQFOXVLRQDORQJZLWKWKHGLUHFWLRQRIWKHIXWXUHUHVHDUFK
3UREOHPVWDWHPHQWDQGUHODWHGZRUN
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
2QFHWKHLQLWLDOLQYHVWPHQWGHFLVLRQLVWDNHQDQGWKHFRPSDQ\FRPPLWVLWVHOIWRWKH 63/( SDUDGLJP WKH SURGXFW OLQH LWVHOI LV FUHDWHG DQG LPSOHPHQWHG $OVR WKHQ LW LV OLNHO\WKDWSUREOHPVZLOODULVH'XHWRWKHODFNRIVXIILFLHQWHPSLULFDOJXLGHOLQHVOLNH
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
DQ\RQHOHVVWKDQDQH[SHUW
7KHJRDORIRXUUHVHDUFKLVWRSURYLGHWKHPXFKQHHGHGEULGJHEHWZHHQWKHWKHRU\
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
5HVHDUFKPHWKRGDQGSODQ
,QRUGHUWRHQVXUHWKHSUDFWLFDOLW\RIRXU9DULDELOLW\ HQDEOLQJ6RIWZDUH3URGXFWOLQH DQG 5HTXLUHPHQWV (QJLQHHULQJ 0HWKRGRORJ\ 9H635(0 ZH FUHDWH 9H635(0 EDVHGRQHPSLULFDOUHVHDUFKLQWKHIRUPRIFDVHVWXGLHV6WDUWLQJIURPDWKHRUHWLFDOO\
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
LQWRDIXOOIOHGJHGPHWKRGRORJ\$IHHGEDFNORRSZLOOWKHQWULJJHUDUHYLVLRQRIDQ\
SUHYLRXVFDVHVDJDLQVWWKHDOWHUHGH[WHQGHGIUDPHZRUN%\IRUPLQJDIHHGEDFNORRS WKHFRQVWUXFWYDOLGLW\RIWKHUHVHDUFKZLOOEHJXDUGHG7KHQH[WIRXUVHFWLRQVUHSUHVHQW WKHSLOODUVRIWKHIUDPHZRUNWKHVWUXFWXUHRIWKH,7GHSDUWPHQWSURYLGLQJWKHSURGXFW OLQHWKHGHFLVLRQSURFHVVFRQFHUQLQJYDULDELOLW\LQUHTXLUHPHQWVWKHUHSUHVHQWDWLRQRI YDULDELOLW\ LQ JRDOV IHDWXUHV DQG DUFKLWHFWXUDO VSHFLILFDWLRQV DQG WKH HQJLQHHULQJ SURFHVVLQ63/(DVDZKROH
$QPXOWLRUJDQL]DWLRQDOFRQWH[WIRU,7
63/( FDQ EH DSSOLHG LQ PDQ\ FRQWH[WV 7KH PHWKRGRORJ\ ZH ZLOO GHYHORS DLPV DW GHYHORSLQJ PDQDJHPHQW LQIRUPDWLRQ V\VWHPV IRU VRIWZDUH LQWHQVLYH RUJDQL]DWLRQV 7KLVVHWWLQJLVYHU\GLIIHUHQWIURPDVHWWLQJRIHJGHYHORSLQJDSURGXFWOLQHIRUHP EHGGHGVRIWZDUHIRUFDUVRUFHOOSKRQHV7KHQHHGIRUYDULDELOLW\DULVHVIURPWKHPXO
WLQDWLRQDOPXOWLGLYLVLRQDORUPXOWLLQVWLWXWLRQDOSURSHUW\RIWKHRUJDQL]DWLRQDµPXO WLµRUJDQL]DWLRQRUµPXOWLµFRPSDQ\(DFKEXVLQHVVXQLWKDVYHU\VLPLODUEXWQHYHU WKHOHVVDOVRYHU\SDUWLFXODUQHHGV$VDUHVXOWRIWKLVWKH,7GHSDUWPHQWQHHGVERWK FHQWUDOL]DWLRQDQGGHFHQWUDOL]DWLRQ
&HQWUDOJXLGDQFHLVQHHGHGLQRUGHUWRREWDLQDQRYHUYLHZRIWKHWRWDO,7SRUWIROLR 7KLVRYHUYLHZLVQHHGHGLIRSSRUWXQLWLHVIRUUHXVHDUHWREHVSRWWHG7KHVHRSSRUWXQL WLHV DUH PDUNHG E\ D VLJQLILFDQW RYHUODS RI IXQFWLRQDOLW\ EHWZHHQ GLIIHUHQW DSSOLFD WLRQV7KLVRYHUODSLVZKDWLVFDOOHGWKHFRPPRQDOLW\RIDSURGXFWIDPLO\
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µPXOWLµFRPSDQ\
)LJ7KHµPXOWLµFRPSDQ\,7GHSDUWPHQW
2QWKHOHIWVLGHRIWKHILJXUHZHVHHWKHVKDUHGVHUYLFHGHSDUWPHQWRUFHQWUDO,7GH SDUWPHQWZKLFKFRRUGLQDWHVWKHZKROH,7VWUXFWXUHDQGKDVDQRYHUYLHZRYHUDOOWKH ,7SURMHFWVLQWKHGLIIHUHQWORFDOVHUYLFHGHSDUWPHQWVRUORFDO,7GHSDUWPHQWV7KHVH ORFDOGHSDUWPHQWVHDFKSURYLGHVRIWZDUHIRUWKHLUVSHFLILFFXVWRPHURUJURXSRIFXV WRPHUV'HSHQGLQJRQWKHW\SHRIµPXOWLµFRPSDQ\WKHFXVWRPHUFDQEHDEXVLQHVV OLQHDEXVLQHVVXQLWDPDUNHWVHJPHQW«(DFKORFDOGHSDUWPHQWLVWKXVFRXSOHGZLWK DFXVWRPHUJURXS7KHWDVNRIWKHORFDOGHSDUWPHQWVLVWRSURYLGHFXVWRPL]HGVRIW ZDUHV\VWHPVWRWKHFXVWRPHUWKH\KDYHEHHQDVVLJQHGWR7KHGLYLVLRQEHWZHHQWKH FHQWUDODQGWKHORFDOGHSDUWPHQWVRQWKHRQHVLGHDQGWKHGLYLVLRQEHWZHHQWKHORFDO GHSDUWPHQWVRQWKHRWKHUVLGHDUHERWKQHFHVVDU\LQRUGHUWRHQVXUHWKHVFDODELOLW\RI WKHGHSDUWPHQW,IWKHGLIIHUHQWWDVNVIRUWKHGLIIHUHQWSDUWVRIWKH,7GHSDUWPHQWDUH QRWFOHDUO\GHILQHGLWZLOOEHFRPHGLIILFXOWWRLQFUHDVHWKHVL]HRIWKH,7GHSDUWPHQW
$OWKRXJK RWKHU RUJDQL]DWLRQDO EOXHSULQWV DUH GHILQLWHO\ SRVVLEOH ZH RSW IRU WKLV FRQVWUXFWEHFDXVHLWLVXVHGE\ERWKH[LVWLQJFRPSDQLHVDQGVXJJHVWHGE\FRQVXOWLQJ ILUPV7KHPRVWLPSRUWDQWDVSHFWVRIWKHEOXHSULQWDUHWKHDFWRUVDQGWKHLUUHVSRQVLELO LW\,QWKHQH[WVHFWLRQZHZLOOHODERUDWHRXUIUDPHZRUNEDVHGRQWKHRUJDQL]DWLRQDO DFWRUVSUHVHQWHGKHUH
9DULDELOLW\LQVRIWZDUHSURGXFWOLQHUHTXLUHPHQWV
7KHVHFRQGSDUW RI RXUIUDPHZRUNFRQFHUQVWKH YDULDELOLW\RIVRIWZDUHSURGXFWOLQH UHTXLUHPHQWV$VPHQWLRQHGEHIRUHYDULDELOLW\LVDFHQWUDOFRQFHSWLQ63/(DQGWKHUH IRUHFHQWUDOWRRXUVWDUWLQJIUDPHZRUN5HDVRQLQJH[SOLFLWO\DERXWYDULDELOLW\LVVRPH WKLQJWKDWUHDOO\QHHGVWREHGRQHLI\RXZDQWD63/(SURMHFWWRKDYHDQ\FKDQFHRQ VXFFHVV7KHHDUOLHULQWKHVRIWZDUHHQJLQHHULQJOLIHF\FOH GHFLVLRQVDERXWYDULDELOLW\
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
GRPDLQDVVHWVHSDUDWHO\
2XUPHWKRGRORJ\ZLOOVXSSRUWPDNLQJGHFLVLRQVDERXWYDULDELOLW\H[SOLFLWO\DQGDV HDUO\DVSRVVLEOH'XULQJWKHUHTXLUHPHQWVQHJRWLDWLRQZLWKWKHGLIIHUHQWVWDNHKROGHUV RI D SURGXFW OLQH LW LV HDV\ WR H[SOLFLWO\ LQWHUDFW DERXW YDULDELOLW\ :KHQ PXOWLSOH VWDNHKROGHUVKDYHGLIIHUHQWGHPDQGVDQGUHTXLUHPHQWVIRUWKHLQIRUPDWLRQV\VWHPVWR EHGHYHORSHGWKHVHGLIIHUHQFHVFDQEHLGHQWLILHGDQGUHDVRQHGXSRQ5HDVRQLQJDERXW YDULDELOLW\GXULQJUHTXLUHPHQWVHQJLQHHULQJLVVSOLWXSLQWRWZRSKDVHV
7KHILUVWSKDVHLVWKHSKDVHGXULQJZKLFKDOOVWDNHKROGHUVGHILQHWKHLUUHTXLUHPHQWV DQGEDVHGRQWKHVHUHTXLUHPHQWVLWLVGHFLGHGZKLFKUHTXLUHPHQWVDUHFRPPRQIRUDOO VWDNHKROGHUVWKHFRPPRQDOLW\RIWKHUHTXLUHPHQWVDQGZKLFKRQHVDUHGLIIHUHQWWKH YDULDELOLW\ RI WKH UHTXLUHPHQWV 'XULQJ WKLV GHFLVLRQ SURFHVV GLIIHUHQFHV EHWZHHQ UHTXLUHPHQWVFDQEHGLVFXVVHGLQDQDWWHPSWWRVOLJKWO\DOWHUWKHUHTXLUHPHQWVVRWKH\
ZLOOSRVVHVVPRUHFRPPRQDOLW\DQGOHVVYDULDELOLW\7KHGULYHIRUWKLVKDUPRQL]DWLRQ VWHSLVWKHIDFWWKDWWKHFRPPRQDOLW\SDUWFDQEHUHXVHGZLWKRXWPDNLQJH[WUDFRVWV
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
)LJ5HTXLUHPHQWVKDUPRQL]DWLRQDQGYDULDELOL]DWLRQ
9DULDELOLW\LQPRGHOVSHFLILFDWLRQV
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
3UREDEO\ WKH EHVW NQRZQ SURGXFW OLQH PRGHOOLQJ WHFKQLTXH LV WKH IHDWXUH PRGHO
>@ $ IHDWXUH PRGHO YLVXDOL]HV DOO SRVVLEOH IHDWXUH FRPELQDWLRQV IRU RQH SURGXFW OLQH$IHDWXUHLVDORJLFDOJURXSLQJRIUHTXLUHPHQWVZKLFKUHSUHVHQWDFHUWDLQDVSHFW RIDVRIWZDUHV\VWHP7KHYLVXDOL]DWLRQRIWKHIHDWXUHVLVGRQHE\DIHDWXUHGLDJUDP
>@7KLVLVDQDF\FOLFJUDSKDQGPRVWRIWKHWLPHVHYHQDKLHUDUFKLFDOWUHH)HDWXUHV FDQEHFODVVLILHGLQWRJURXSVLQGLIIHUHQWZD\V$ILUVWFODVVLILFDWLRQFDQEHGRQHEDVHG RQWKHIXQFWLRQDOLW\ZKLFKLVUHSUHVHQWHG$IHDWXUHFDQUHSUHVHQWDJURXSRIUHTXLUH PHQWVZKLFKDUHHLWKHUIXQFWLRQDORUQRQIXQFWLRQDO>@)XQFWLRQDOUHTXLUHPHQWVDQG IHDWXUHV GHPDQG WKH GHYHORSPHQW RI VRPH IXQFWLRQDOLW\ RI WKH LQIRUPDWLRQ V\VWHP 1RQIXQFWLRQDOUHTXLUHPHQWVDQGIHDWXUHVUHSUHVHQWGHPDQGVWKDWOLQNWRFHUWDLQSHU IRUPDQFHRUVHUYLFHOHYHOVEXWGRQRWGHPDQGDQ\IXQFWLRQDOLW\
7KHVHFRQG PDQQHU RI IHDWXUHFODVVLILFDWLRQ LV PRUHLQWHUHVWLQJ LQWKHFRQWH[W RI
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
7KHVHFRQGWHFKQLTXHZKLFKLVJDLQLQJPRUHDQGPRUHLQWHUHVWLQFXUUHQWUHVHDUFK RQUHTXLUHPHQWVHQJLQHHULQJLVJRDOPRGHOOLQJ$FFRUGLQJWRYDQ/DPVZHHUGH>@D JRDO LV D SUHVFULSWLYH VWDWHPHQW RI LQWHQW WKDW WKH V\VWHP VKRXOG VDWLVI\ WKURXJK WKH FRRSHUDWLRQRILWVDJHQWV$JRDOLVWKXVVRPHWKLQJWKDWQHHGVWREHDWWDLQHGE\FHUWDLQ V\VWHP FRPSRQHQWV LQ RUGHU WR EH IXOILOOHG $ V\VWHP FRPSRQHQW FDQ EH D KXPDQ DFWRUZLWKDVSHFLILFUROHDVRIWZDUHFRPSRQHQWDPHDVXULQJGHYLFHHJDVHQVRU«
9DULDELOLW\LQJRDOPRGHOVLVUHSUHVHQWHGE\DOWHUQDWLYHUHILQHPHQWV
7KHGLIIHUHQFHEHWZHHQDUHTXLUHPHQWDQGDJRDOLVWKHIROORZLQJDUHTXLUHPHQWLV DSUHVFULSWLYHVWDWHPHQWWKDWQHHGVWREHHQIRUFHGE\WKHVRIWZDUHV\VWHPEHLQJGHYHO RSHGDJRDOLVDSUHVFULSWLYHVWDWHPHQWWKDWFDQEHHQIRUFHGE\DQ\V\VWHPFRPSR QHQW*RDOVDUHWKHUHIRUHXVHIXOLQDFRQWH[WZKHUHWKHUHDUHEXVLQHVVVWDNHKROGHUVRU RWKHUQRQ,7VWDNHKROGHUVSUHVHQWZKLOHUHTXLUHPHQWVSUHVHQWWKHSRVVLELOLW\IRU,7 VWDNHKROGHUVWRIRFXVRQWKHVRIWZDUHV\VWHPZKLFKQHHGVWREHGHYHORSHG,QD63/(
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
6RIWZDUHSURGXFWOLQHHQJLQHHULQJZLWKH[SOLFLWYDULDELOLW\
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
WHQGLQJLWZLWKRQHH[WUDF\FOH7KHILUVWF\FOHLVWKHVDPHDVWKHGRPDLQHQJLQHHULQJ F\FOHGXULQJZKLFKWKHDVVHWVDUHGHYHORSHGZLWKVSHFLDODWWHQWLRQGHYRWHGWRYDULD ELOLW\ 7KH VHFRQG F\FOH LV WKH DSSOLFDWLRQ LQVWDQWLDWLRQ F\FOH 7KLV F\FOH URXJKO\
PDWFKHV WKH WUDGLWLRQDO DSSOLFDWLRQ HQJLQHHULQJ F\FOH 7KH YDULDELOLW\ SRLQWV LQ WKH GRPDLQDVVHWDUHERXQGZLWKVSHFLILFYDULDQWVDQGWKHDVVHWLVWKHQORFDOL]HGRULP SOHPHQWHGVSHFLILFDOO\IRUWKHFXVWRPHULQTXHVWLRQ7KHWKLUGDQGODVWF\FOHLVDQ
)LJ3URGXFWOLQHHQJLQHHULQJF\FOHV
DGGLWLRQDOF\FOHQRWLQFOXGHGLQWKHWUDGLWLRQDOELF\FOHSURFHVVZKLFKGHDOVZLWKWKH FXVWRPHUVSHFLILFH[WHQVLRQ RIWKH QRZORFDOL]HG DVVHW E\ WKHORFDO GHSDUWPHQWV ,Q WUDGLWLRQDO 63/( WKLV ODVW F\FOH LV LPSOLFLWO\ SDUW RI WKH DSSOLFDWLRQ HQJLQHHULQJ F\FOHEXWZHVXJJHVWPDNLQJWKLV GLVWLQFWLRQEHFDXVHWKH H[WHQGLQJDFWLYLW\FOHDUO\
GLIIHUVIURPWKHORFDOL]LQJDFWLYLW\/RFDOL]LQJLVGRQHLQWKHVDPHZD\ZLWKWKHVDPH VHW RI S RVVLEOH YDULDQWV IRU DOO SURGXFW OLQH PHPEHUV ZKLOH H[WHQVLRQV DUH GH IDFWR PHPEHU VSHFLILF %HFDXVH GLIIHUHQW UXOHV DQG IRUFHV FDQ DSSO\ LQ ERWK SKDVHV WKH\
VKRXOGEHVSOLWXSLQVWHDGRIEHLQJFRQVLGHUHGDVRQHDSSOLFDWLRQHQJLQHHULQJVWHS ,Q)LJWKHWKUHHF\FOHVDUHUHSUHVHQWHGE\QXPEHUHGDUURZV1XPEHULVWKHGR PDLQ DVVHW F\FOH ZKHUH WKH FRPPRQ SDUW DQG WKH VXSSRUWHG YDULDELOLW\ SDUW DUH FUHDWHGQXPEHULVWKHORFDOL]LQJF\FOHZKHUHWKHVXSSRUWHGYDULDELOLW\LVILOOHGLQ GHSHQGLQJ RI WKH FRQWH[W DQG QXPEHU UHSUHVHQWV WKH H[WHQVLRQ F\FOH ZKHUH ORFDO DGGLWLRQV DUH PDGH 7KH F\FOHV DUH PDSSHG DJDLQVW WKH ,7 GHSDUWPHQW VWUXFWXUH RI VHFWLRQLQRUGHUWRVKRZWKHQDWXUDOPDSSLQJRILWRQWKHF\FOHV
9H635(0DFRQFOXVLRQDQGORRNDWWKHIXWXUH
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
$V PDGHFOHDUE\ WKH H[SODQDWLRQ RIWKH SLOODUV RIWKHIUDPHZRUNWKHWKHRU\ IRU VXFFHVVIXO 63/( LV DYDLODEOH LQ UHVHDUFK EXW WKH OLQN WRZDUGV SUDFWLFH VWLOO ODFNV
VWUHQJWKDQGWKLVLVZKHUH9H635(0ZLOOXOWLPDWHO\SURYHXVHIXO2QFHWKHPHWKR GRORJ\LVFRPSOHWHGWKHIROORZLQJVWHSZLOOEHWRLQWURGXFH9H635(0LQWRFRPSD QLHV DQG LQ WKDW ZD\ FUHDWH QHZ RSSRUWXQLWLHV IRU IXUWKHU H[SORUDWLRQV LQ HPSLULFDO UHVHDUFK
$FNQRZOHGJHPHQWV
:HJUDWHIXOO\DFNQRZOHGJH.%&*OREDO6HUYLFHV19PHPEHURIWKH.%&*URXS IRUIXQGLQJWKLVUHVHDUFKWKURXJKWKH.%&UHVHDUFKFKDLU'HYHORSLQJDQG0DQDJLQJ
%XVLQHVV6HUYLFHVDV6KDUHG$VVHWV
5HIHUHQFHV
.DQJ .& &RKHQ 6* +HVV -$ 1RYDN :( 3HWHUVRQ $6 )HDWXUH2ULHQWHG 'R PDLQ$QDO\VLV)2'$IHDVLELOLW\VWXG\6RIWZDUH(QJLQHHULQJ,QVWLWXWH&DUQHJLH0HOORQ 8QLYHUVLW\
&OHPHQWV31RUWKURS/6RIWZDUHSURGXFWOLQHVSUDFWLFHVDQGSDWWHUQV$GGLVRQ:HVOH\
/RQJPDQ3XEOLVKLQJ%RVWRQ
$OYHV91LX1$OYHV&9DOHQoD*5HTXLUHPHQWVHQJLQHHULQJIRUVRIWZDUHSURGXFW OLQHV$V\VWHPDWLFOLWHUDWXUHUHYLHZ,QIRUPDWLRQDQG6RIWZDUH7HFKQRORJ\SS
+XEDX[ $ +H\PDQV 3 %HQDYLGHV ' 9DULDELOLW\ 0RGHOOLQJ &KDOOHQJHV IURP WKH 7UHQFKHVRIDQ2SHQ6RXUFH3URGXFW/LQH5H(QJLQHHULQJ3URMHFW,Q,QWHUQDWLRQDO&RQIH UHQFHRQ6RIWZDUH3URGXFW/LQHVSS,(((&RPSXWHU6RFLHW\/LPHULFN /LQGHQ)-6FKPLG.5RPPHV(6RIWZDUH3URGXFW/LQHVLQ$FWLRQ7KH%HVW,QGXVWUL
DO3UDFWLFHLQ3URGXFW/LQH(QJLQHHULQJ6SULQJHU9HUODJ%HUOLQ
/HH..DQJ.&/HH-&RQFHSWVDQG*XLGHOLQHVRI)HDWXUH0RGHOLQJIRU3URGXFW/LQH 6RIWZDUH(QJLQHHULQJ,Q,QWHUQDWLRQDO&RQIHUHQFHRQ6RIWZDUH5HXVHSS±6SULQ JHU9HUODJ$XVWLQ
&KHQ/$OL%DEDU0$OL19DULDELOLW\PDQDJHPHQWLQVRIWZDUHSURGXFWOLQHVDV\VWH PDWLFUHYLHZ,Q3URFHHGLQJVRIWKHWKLQWHUQDWLRQDO6RIWZDUH3URGXFW/LQH&RQIHUHQFH SS&DUQHJLH0HOORQ8QLYHUVLW\6DQ)UDQFLVFR
.LP6'+HU-6&KDQJ6+$7KHRUHWLFDO)RXQGDWLRQRI9DULDELOLW\LQ&RPSRQHQW
%DVHG'HYHORSPHQW,QIRUPDWLRQDQG6RIWZDUH7HFKQRORJ\SS 6YDKQEHUJ0YDQ*XUS-%RVFK-$7D[RQRP\RI9DULDELOLW\5HDOL]DWLRQ7HFKQLTXHV
6RIWZDUH3UDFWLFH ([SHULHQFHSS±
7UDYHUV04XDOLWDWLYHUHVHDUFKWKURXJKFDVHVWXGLHV6DJH3XEOLFDWLRQV,QF/RV$QJHOHV
<LQ5.&DVH6WXG\5HVHDUFK'HVLJQDQG0HWKRGV6DJH3XEOLFDWLRQV,QF/RV$QJHOHV
&]DUQHFNL.(LVHQHFNHU8:*HQHUDWLYH3URJUDPPLQJ0HWKRGV7RROVDQG$SSOLFD WLRQV$&03UHVV$GGLVRQ:HVOH\3XEOLVKLQJ&R1HZ<RUN
5REHUWVRQ 65REHUWVRQ - 0DVWHULQJ WKH 5HTXLUHPHQWV 3URFHVV $&0 3UHVV$GGLVRQ :HVOH\3XEOLVKLQJ&R1HZ<RUN
YDQ /DPVZHHUGH $ 5HTXLUHPHQWV (QJLQHHULQJ )URP 6\VWHP *RDOV WR 80/ 0RGHOV WR 6RIWZDUH6SHFLILFDWLRQV:LOH\&KLFKHVWHU
3RKO.%|FNOH*/LQGHQ)-6RIWZDUH3URGXFW/LQH(QJLQHHULQJ)RXQGDWLRQV3ULQ FLSOHVDQG7HFKQLTXHV6SULQJHU9HUODJ1HZ<RUN