Q3ʼ23 Shareholder Letter November 6, 2023
Dear Shareholders, As I approach my first full quarter as interim CEO, I want to share my observations on Vimeo, and thoughts about what's ahead for the company. First, I want to thank the Vimeo community – our employees, our customers and our millions of enthusiastic video creators – for the warm and supportive welcome I’ve received. I recently visited some customers in the media and entertainment industry, and it's exhilarating to see the innovation and success they are having using our products. And a few weeks ago I joined hundreds of filmmakers in New York for a screening to celebrate the 15th anniversary of Vimeo’s vaunted Staff Picks program (you can see these for yourself here). The passion and creativity on display was a reminder of how much possibility and power remains for Internet video, especially when control is put in the hands of more people. As Vimeo approaches its third decade, our brand remains in an impressive tier of Internet companies. I don’t think I’ve encountered a single person who hasn’t at least heard of us, and more often than not I’m met with wide-eyed excitement as someone shares their experience with our products and community, an incredibly powerful testament to a software product. That strength is reflected in our Internet presence, where tens of millions of people are interacting with our products each month - and over one million becoming registered users - largely through highly efficient organic discovery. And the strength of our cash position continues to grow, keeping us on solid footing with a wide array of investment opportunities moving forward. For all we’ve accomplished, I believe we are still spread too thin and going forward, less will yield more. A healthy dose of simplification, alignment and focus can be a powerful accelerant for the company. We are well underway with the process of unifying our products to create consistent experiences across Vimeo. In the last few weeks we’ve launched updates to our customer acquisition and conversion surface area, and released a newly unified suite of marketing solutions. Combined with our existing community and traffic, these innovations offer the potential to unlocking organic product led growth and efficient customer acquisition. This simplification and unification needs to extend to the portion of our business served by our sales team as well. Historically we’ve made investments in sales as we’ve grown our Vimeo Enterprise product line, but, as we look to scale from here, we see real opportunities for efficiency. From how we generate pipeline to our growth and renewal motions, I believe tighter processes can lead to better results with less wasted effort. All these efforts to grow sustainably by simplifying our go to market and streamlining our approach will require investment of time and resources. Fortunately, we have returned Vimeo to profitability, generating meaningful free cash flow. With our healthy gross margins, and our focus on cost control, I am confident we can create the additional investment dollars that may be needed to achieve predictable and sustained revenue growth in the years to come, even if that may impact margin in 2024. Finally, as video has become increasingly important to businesses and the Internet, Vimeo’s brand has unique relevance and trust. As we simplify and focus our business and strategy, I am focused on bringing new clarity to our brand, and ultimately to our ability to become a strategic partner for our customers. I want to reiterate my gratitude to our extended community, and look forward to keeping you updated on our progress. Thx, Adam 2 Adam Gross, Interim CEO
3 Vimeo has made good progress in 2023, and we have plenty more to do to achieve our goal of delivering sustained profitable growth to our shareholders. In Q3, we moved topline growth in a positive direction. Bookings grew for the first time in 2023, and our revenue growth improved from down 8% in Q2 to down 2%. Importantly, we improved our year-over-year bookings and revenue trajectory in our biggest product area, Self-Serve & Add-Ons, something we know we must do at a sustained level to regain total bookings and revenue growth over time. In Q3, we continued to progress on our bottom line profitability as well, delivering net income of $8 million, or 8% of revenue, and Adjusted EBITDA* of $13 million, or 12% of revenue. This may be a somewhat higher level of margin than we deliver in coming quarters as we balance investment and growth, but we are pleased it shows some of the profit capacity of the Vimeo model. $100M $106M 79% $8M $13M $291M Total Bookings Total Revenue Gross Margin Net Income Adj. EBITDA* Ending Cash *Adjusted EBITDA is a non-GAAP measure. For a reconciliation see page 16. For the fourth quarter of 2023, we expect revenue to be above $100 million, and Adjusted EBITDA to be in the high-single digit millions of dollars. Our Q4 guidance implies that we continue to expect revenue to be down mid-single digit percentage points for the full year compared to the prior year, and now expect Adjusted EBITDA to be between $27 million and $30 million. We were encouraged to deliver Q3 bookings growth, but our return to sustained growth is likely to be non-linear. In Q4, we expect bookings to decline in the mid single digits year-over-year. While we still believe we are on a path to turn Vimeo back to growth (bookings growth typically precedes revenue growth by a couple quarters), we are working on our 2024 budget and our revised outlook for when we expect to see a sustained turn in bookings and revenue. Looking Forward Q3 Financial Overview
4 Total bookings grew 4% in Q3 and total revenue was $106 million, down 2% year-over-year, both enjoying improved rates of growth as compared to Q2. 99.996.299.3 106.3108.1 100.1 Bookings & Revenue
Q3 Vimeo Enterprise bookings growth was 55% and revenue growth was 53% year-over-year. Looking at the dynamics that fuel this product’s trajectory, Q3 Net Revenue Retention was over 100%. Subscribers grew 46% year-over-year to 3,000 and ARPU was up 5% year-over-year. We had some impressive customer wins in Q3. Boston Consulting Group EMEA signed for e-learning, Forrester Research for marketing on web and social, Tory Burch for live performances, Shutterstock for executive communications, and Justworks, Omni Hotels & Resorts, Alarm.com, SHEIN, and Oxford University all signed to use Vimeo to organize and manage their videos. At the same time, we continued to advance our enterprise offering, particularly for our largest customers with features like HIPAA provider compliance, international access, and user controls. While we expect Vimeo Enterprise to continue to grow at a healthy clip, we did see some new headwinds on the pipeline side in Q3 and into early Q4. Specifically, we saw pipeline decrease throughout the quarter with a larger impact in SMB than for large customers. We believe this is largely due to execution issues that are being addressed, and that the macro environment may also have had some impact. Near term execution headwinds aside, our enthusiasm for the opportunity in Vimeo Enterprise remains strong, as does the outlook to deliver healthy double digit growth in this product. We believe we have a compelling offering at an attractive price point in the video market. Our confidence here also comes from user statistics such as seats filled and monthly active team users, which were up more than 100% and 98% year-over-year, respectively. Vimeo Enterprise 5 17,937 19,847 20,848
6 We continue to believe we can put ourselves in a position to grow bookings and revenue in our Self-Serve & Add-Ons offering but progress has been slower than we had hoped entering 2023. While still declining, Self-Serve & Add-Ons saw improvement in the rate of decline of top line performance in Q3. Bookings was down 4% and revenue was down 6% year-over-year, 4 and 3 percentage point improvements compared to Q2, respectively. In Q3, subscribers were down 9% year-over-year, a rate similar to Q2, offset by an ARPU that was up 3% year-over-year and 3% sequentially. The improvement in the Q3 year-over-year rate of bookings decline compared to Q2 was driven by an improvement in the trajectory of new bookings due to better traffic trends and a slight increase in conversion in Self-Serve. Bandwidth Add-Ons renewal bookings also improved. While retention rates remained relatively stable for Self-Serve, the dollar amount of renewal bookings was down year-over-year due to a lower base of bookings up for renewal. After a year of product simplification work, we believe we are at a place where our product can and should be able to speak for itself, so we are looking at shifting customer acquisition to be more product rather than marketing led. We are opening up our product to more free users as we believe that they are more likely to buy after trying. We are fortunate to have a funnel of millions of free users to source from - it is among the many assets we have built over the last decade. Additionally, we believe a stronger product focus should benefit retention over time. Shifting in this direction could cause some headwinds on new bookings in 2024, but we believe we will generate more, and higher margin, long term revenues. We continue to believe that Self-Serve & Add-Ons can and will return to being a growth driver for Vimeo, but that it may take more time to achieve growth as compared to our previous expectations. Self-Serve & Add-Ons $190 $196 $202
7 Our strategy with Other is to continue operating OTT efficiently, providing a high-value service for our customers while scaling back on growth investments, and deprecating certain products other than OTT in this area. Other bookings were $14 million in the quarter, down 1% year-over-year. In Q3, Other was positively impacted by a large OTT renewal closing that had previously been expected to close in Q4, which in turn will negatively impact Q4. Given our limited investment in this category, we expect continued year-over-year declines in Other. Other
8 We continue to manage our expenses carefully in this environment. On the cost of revenue front, we optimized our hosting and customer care costs further in Q3, which drove GAAP gross profit of $84 million and non-GAAP gross profit* of $85 million yielding GAAP gross profit margin of 79% and non-GAAP gross margin* of 80%. Total GAAP operating expenses were down 25% year-over-year and non-GAAP operating expenses* were down 11% year-over-year. We reduced both compensation and non-compensation expenses, and Q3 headcount was down 12% year-over-year. *See reconciliation of GAAP to non-GAAP measures starting on page 15. Expenses & Profitability 75% 77% 79% 75% 77% 80%
9 In sales and marketing, our focus is on efficiently building and expanding relationships with users. In Q3, we reduced less efficient paid marketing spend. GAAP sales and marketing expense was down 16% year-over-year and non-GAAP sales and marketing expense* was down 11% year-over-year to 33% of revenue, down 3 percentage-points compared to last year. In research and development, our focus is on investing in a growth-driving product experience in the most efficient manner possible. Q3 investments included an enhanced video editor with custom branded and viewing experiences and improved marketing integrations. In Q3, GAAP research and development was down 33% year-over-year to 22% of revenue, and non-GAAP R&D* was down 13% year-over-year to 20% of revenue*, improvements of 10 and 2 percentage-points compared to Q3 of last year, respectively. In general and administrative, our focus is on driving efficiency and scaling operations over time. In Q3, GAAP G&A was down 30% year-over-year to 17% of revenue. Non-GAAP G&A* was down 9% year-over-year in Q3, or 15% of revenue, down one percentage point versus Q3 of last year. Our stock-based compensation strategy includes a commitment to manage burn and dilution. Stock-based compensation expense was $7 million in the quarter, down $12 million or 63% year-over-year. Other income was $4 million in the quarter, as our cash balances are yielding strong returns in this higher rate environment. Amortization of intangibles decreased by $1 million year-over-year due to certain assets related to the Magisto acquisition reaching the end of their useful life. Net Income was $8 million in the quarter. Both Basic and Diluted EPS were $0.05. Adjusted EBITDA* was $13 million in the quarter, an $11 million improvement compared to the prior year period. *See reconciliation of GAAP to non-GAAP measures starting on page 15. Expenses & Profitability 8% (20)% (12)% 2% 12% 1%
10 We ended Q3 with $291 million in cash and cash equivalents, up $18 million compared to the prior year period. Accounts receivable, net was $25 million in Q3, down $6 million compared to the prior year quarter due to our improved collections processes. Accrued expenses and other current liabilities was down $13 million year-over-year primarily due to the resolution of earn-outs related to prior acquisitions. Net cash from operating activities was $17 million in the quarter, up $7 million from the year-ago quarter, with the improvement driven by improved operating income, interest income from our significant cash balance, and the cash impact from a restructuring in Q2 of last year. Free Cash Flow* was $17 million in the quarter, up $3 million from the prior year period. Vimeo will live stream a video conference to answer questions regarding its second quarter results on Monday, November 6, 2023, at 5:00 p.m. Eastern Time. This live stream will include disclosure of certain information, including forward-looking information, which may be material to an investor’s understanding of Vimeo’s business. The live stream will be open to the public at https://vimeo.com/investors. Balance Sheet & Cash Flow Highlights Video Conference Call *See reconciliation of GAAP to non-GAAP measures starting on page 15.
($$ -$- $ $ - B 2 :0' 0 : 1. 21 . 2 2: 3 2 . : MR LSYWERHW I GIT TIV WLEVI HE E$ LVII SR LW 2RHIH IT IQFIV ,) :MRI SR LW 2RHIH IT IQFIV ,) ) , ) ) , ) GRcR bR 0&,/- 2& -- - &01 -,1&.0. 9 a S RcR bR $ReP b VcR S QR RPVNaV U d R N NaR f OR d% , &2 , ,/&,.1 02&- 3 12&22 SVa 2.&./ 2,&220 ,.-&-/ ,.2&/2- D R NaV T Re R R 4 GR RN PU N Q QRcR R a Re R R ,-& /- -.&-12 2 & 23 .&/,. HN R N Q N XRaV T Re R R -0&1 . .-&//. 0&.// ,3&13 R R N N Q NQ V V a NaVcR Re R R 2&-30 ,0&.0 -.&0./ 2.&12- :R RPVNaV 02 . & 32 ,& /. 7 aVgNaV S V aN TVO R -.1 &,-. ,&.3 -&200 I aN R NaV T Re R R 12&102 /&102 ,-/&212 -,/& 1 D R NaV T V P R $ % /&02- $,,&22,% 1&.1- $10&.-.% aR R a Re R R h $ ,.% $332% $-01% DaUR V P R& Ra -&0/1 ,& 33 3&,-/ -&1 , ;N V T $ % ORS R V P R aNeR 3&-. $, &2 1% /&1 $1-& 23% P R aNe cV V $210% $0 3% $,& 1-% $ &-21% :I IEVRMRKW PSWW$ 2&.0. $, &. 0% -&0-1 $1.&.10% IV WLEVI MR SVQE MSR- 8N VP RN V T $ % R UN R ( / $ ( -% ( 2 $ (.0% :V baRQ RN V T $ % R UN R ( / $ ( -% ( 2 $ (.0% LRVTUaRQ NcR NTR UN R ba aN QV T b RQ V aUR P baNaV S Ra RN V T $ % R UN R4 8N VP 0-&211 0 &/,3 0,&2,, 0 &.-- :V baRQ 0/&3 0 0 &/,3 0.&3, 0 &.-- SGO&FEWIH GSQTIRWE MSR I TIRWI F YRG MSR- 9 a S RcR bR ,1 ,31 1. 032 GR RN PU N Q QRcR R a Re R R ,& .3 1&3 2 &0/ 3&-,3 HN R N Q N XRaV T Re R R &1,- ,&311 1&-10 0&-/, R R N N Q NQ V V a NaVcR Re R R ,&313 2&, , $ .&--1% ,/&22 I aN a PX'ON RQ P R NaV Re R R 1& ,, 3&-3. /&.,3 /,&,/3
B 2 :0' 0 : 1. 21 /. .:02 22 MR LSYWERHW$ IT IQFIV ,) ) , 1IGIQFIV , ) . 2 9N U N Q PN U R bVcN R a ,3 &/0. ,1.&.31 7PP b a RPRVcNO R& Ra ,/& 2, - &.-. E R NVQ Re R R N Q aUR Pb R a N Ra , &0 - 2&-3/ I aN Pb R a N Ra --0&-/3 -,.&-,0 ARN RU Q V cR R a N Q R bV R a& Ra 2/. &-// QdV ,./&. 0 ,./&. 0 aN TVO R N Ra dVaU QRSV VaR VcR & Ra ,&311 /&.02 DaUR 'Pb R a N Ra ,.& 2, ,2&210 . . 2 0 3&012 0 /&.- ./ 2 .:1 . 2 12 " 2 A D ./ 2 - 7PP b a NfNO R& a NQR 1&-,3 2&. / :RSR RQ RcR bR 03&2/1 01&-22 7PP bRQ Re R R N Q aUR Pb R a VNOV VaVR / &2 , /1& / I aN Pb R a VNOV VaVR ,,1&332 ,-,&3/. DaUR T'aR VNOV VaVR .&30 2&0 3 9 Va R a N Q P aV TR PVR . 2 12 " 2 A D- 9 a PX &/13 &/1, 9 N 8 P a PX 3. 3. E RSR RQ a PX h h 7QQVaV N NVQ'V PN VaN 102& -- 102&-3 7PPb b NaRQ QRSVPVa $. &1- % $. /&-01% 7PPb b NaRQ aUR P RUR VcR $ &,/0% $2- % I aN UN RU QR R bVaf -00&1, -/-&2/2 . ./ 2 .:1 . 2 12 " 2 A D 0 3&012 0 /&.- ,
B 2 :0' 0 : 1. 21 . 2 2: 3 0. 3 C MR LSYWERHW$ LVII SR LW 2RHIH IT IQFIV ,) :MRI SR LW 2RHIH IT IQFIV ,) ) , ) ) , ) 0EWL PS W VSQ STIVE MRK EG M M MIW- :I IEVRMRKW PSWW$ 2&.0. $, &. 0% -&0-1 $1.&.10% 7QWb a R a a RP PV R Ra RN V T $ % a Ra PN U cVQRQ Of $b RQ V % R NaV T NPaVcVaVR 4 Ha PX'ON RQ P R NaV Re R R 1& ,, 3&-3. /&.,3 /,&,/3 7 aVgNaV S V aN TVO R -.1 &,-. ,&.3 -&200 :R RPVNaV 02 . & 32 ,& /. E cV V S P RQVa R - 3 1-/ -,0 1&1/ A aUR N R S N N Ra h h -1 h C 'PN U RN R Re R R & .- & ,/ -&. .&0.0 DaUR NQWb a R a & Ra $-/2% h & /- $1 3% 9UN TR V N Ra N Q VNOV VaVR 4 7PP b a RPRVcNO R $. 1% 0&- 3 -&./- $ &3 0% E R NVQ Re R R N Q aUR N Ra $ &3- % &- . $ &321% $ &//0% 7PP b a NfNO R N Q aUR VNOV VaVR /&, 1 1& .2 $0&, % $ 3& 13% :RSR RQ RcR bR $-&..2% $/&3- % .&300 $ &.2/% :I GEWL TVS MHIH F YWIH MR$ STIVE MRK EG M M MIW 0&0 1 3&3/. ,1&2 - $-2&1/0% 0EWL PS W VSQ MR IW MRK EG M M MIW- 7P bV VaV & Ra S PN U NP bV RQ h h h , 9N VaN Re R QVab R $ % $. % $ 2% $01 % E PRRQ S aUR N R S N N Ra h h 0-3 &0 :I GEWL YWIH MR$ TVS MHIH F MR IW MRK EG M M MIW $ % $. % /- 30, 0EWL PS W VSQ MRERGMRK EG M M MIW- LVaUU QV T aNeR NVQ R NaRQ a R bVaf NdN Q $ &/ 1% $-.% $/&031% $/& 0 % E PRRQ S ReR PV R S a PX aV 0 h -. 2 9 aV TR a P VQR NaV Nf R a $,&.11% $.&2 0% $/&11.% $.&2 0% DaUR h h $,00% $0, % :I GEWL YWIH MR MRERGMRK EG M M MIW $-&322% $.&2/ % $ &0 -% $ &/13% S EP GEWL TVS MHIH YWIH$ ,&0 2 /& 0. 0&1- $.2&-1-% ;SSRPa S RePUN TR NaR PUN TR PN U N Q PN U R bVcN R a N Q R a VPaRQ PN U $/, % $,11% $01.% $10/% :I MRGVIEWI HIGVIEWI$ MR GEWL ERH GEWL IUYM EPIR W ERH VIW VMG IH GEWL ,& 32 .&121 0& /1 $.3& -2% 9N U N Q PN U R bVcN R a N Q R a VPaRQ PN U Na ORTV V T S R V Q ,12&13- ,02&., ,1.&2-. -,,&-./ 0EWL ERH GEWL IUYM EPIR W ERH VIW VMG IH GEWL E IRH S TIVMSH ,3 &23 ,1-&, 1 ,3 &23 ,1-&, 1 -
B 2 :0' 1 . 2 . 21 2B2:A2 .:1 2 . : 2 0 R LSYWERHW I GIT TIV . A$ LVII SR LW 2RHIH IT IQFIV ,) :MRI SR LW 2RHIH IT IQFIV ,) ) , ) ) , ) 1MWEKKVIKE IH I IRYI HR S'HR cR " 7QQ'D 1 &3-/ 10&1-1 , .&-/2 ,- & 1. KV R ; aR V R /&,, 3&30 -3&03 ,2&2/0 DaUR 3& 32 , &.-0 /1&0, 01&/-. I aN GRcR bR 0&,/- 2& -- - &01 -,1&.0. TIVE MRK I VMGW HR S'HR cR " 7QQ'D 4 HbO P VOR &-31(- &/-3( &-31(- &/-3( 7cR NTR HbO P VOR &. .(1 &//,(/ &./ (, &/.0(3 7GE , , 30 31 , 8 XV T 01&. 3 1 & .. , -&/1, ,,1&, KV R ; aR V R4 HbO P VOR -( ,( -( ,( 7cR NTR HbO P VOR ,(3 ,( ,(0 (2 7GE , &2.2 3&2.1 , & /. , &22- 8 XV T 2& / &0-3 .3&120 - &/1. DaUR 4 HbO P VOR 1 ( ,( 1 ( ,( 7cR NTR HbO P VOR 1.(- 2(. 2,(, , (. 7GE & 3 12. 3-1 1/ 8 XV T .&. - .&/,1 -2&//. .3& .. .
- $ - ($$ - - ($$ $ ; ; ; A ; ; A F A LVII SR LW 2RHIH IT IQFIV ,) ) , ) ) IGSRGMPME MSR S RSR& .. KVSWW TVS M - 77E SVa 2.(/ 2,(3 1.(3 BN TV 13 11 1/ 7QQ ONPX4 Ha PX'ON RQ P R NaV Re R R (- (- (, C ' 77E E SVa 2.(1 2-(, 1/( C ' 77E BN TV 2 11 1/ IGSRGMPME MSR S RSR& .. STIVE MRK I TIRWIW- 77E GR RN PU N Q QRcR R a Re R R ,-(, -.(. ,0(1 S GRcR bR ,, -, ,1 AR 4 Ha PX'ON RQ P R NaV Re R R ,( 1(3 -(3 AR 4 GR a bPab V T P a h ,(- h C ' 77E GR RN PU N Q QRcR R a Re R R , ( ,.(, ,,(2 S GRcR bR , ,, ,- 77E HN R N Q N XRaV T Re R R -0(1 .-(0 -1(2 S GRcR bR -/ . -2 AR 4 Ha PX'ON RQ P R NaV Re R R (1 -( (, AR 4 GR a bPab V T P a h ( h C ' 77E HN R N Q N XRaV T Re R R -/( -3(. -0(0 S GRcR bR -- -0 -1 77E R R N N Q NQ V V a NaVcR Re R R 2(. ,0(/ , (0 S GRcR bR 1 ,. , AR 4 Ha PX'ON RQ P R NaV Re R R -( 2(, /(1 AR 4 9 aV TR a P VQR NaV SNV cN bR NQWb a R a $ (/% h h AR 4 GR a bPab V T P a h (2 h C ' 77E R R N N Q NQ V V a NaVcR Re R R /(3 1(/ .(3 S GRcR bR / 0 / /
- $ - ($$ - - ($$ $ ; ; ; E C A A C A ; C A ; ; A F A LVII SR LW 2RHIH IT IQFIV ,) ) , ) ) IGSRGMPME MSR S RI IEVRMRKW PSWW$ S .HNYW IH 2/ 1.- CRa RN V T $ % 2(/ $, (.% $ (1% 7QQ ONPX4 P R aNe cV V (3 (0 h DaUR $V P R% Re R R& Ra $-(1% $,(,% ( aR R a Re R R h ( ( D R NaV T V P R $ % /(1 $,,(3% $ (/% D R NaV T P R $A % BN TV / $, % $ ,% 7QQ ONPX4 Ha PX'ON RQ P R NaV Re R R 1( 3(. (3 :R RPVNaV (, ( (- 7 aVgNaV S V aN TVO R (- (, ( 9 aV TR a P VQR NaV SNV cN bR NQWb a R a $ (/% h h GR a bPab V T P a h .(, h 7QWb aRQ ;8 I:7 ,(2 ,( (2 7QWb aRQ ;8 I:7BN TV , , 0SQTY E MSR S 3VII 0EWL 3PS - CRa PN U cVQRQ Of R NaV T NPaVcVaVR 0(0 ( 3(. 7QQ4 GR a bPab V T P a h -(/ h AR 4 9N VaN Re R QVab R h h $ ( % RR 9N U d 0(0 -(. 3(. 0
20 :0 . : 3 .. : :& .. 3 :.:0 . A ; ; ; A ; ; A F A LVII SR LW 2RHIH 1IGIQFIV , ) , IP I SR LW 2RHIH 1IGIQFIV , ) , TIVE MRK PSWW$ MRGSQI S .HNYW IH 2/ 1. VERKI- D R NaV T $ % V P R $ (1% h ,(- 0(1 h 3(1 7QQ ONPX4 Ha PX'ON RQ P R NaV Re R R 0(, 0(, (0 (0 :R RPVNaV (, (, (. (. 7 aVgNaV S V aN TVO R (- (- ,(2 ,(2 9 aV TR a P VQR NaV SNV cN bR NQWb a R a h h $ (.% $ (.% GR a bPab V T P a h h .(3 .(3 7QWb aRQ ;8 I:7 0( h 3( ,1( h - ( 1
- -$- $ -( LR UNcR cVQRQ V aUV R R RN R PR aNV ' 77E SV N PVN RN b R & V P bQV T 7QWb aRQ ;8 I:7& ' 77E T SVa& ' 77E R NaV T Re R R & N Q S RR PN U S d& a b R R a b SV N PVN V S NaV R R aRQ V NPP QN PR dVaU 77E( LR b R aUR R ' 77E SV N PVN RN b R V aR N f V N N fgV T b SV N PVN R b a N Q OR VRcR aUNa aUR R ' 77E SV N PVN RN b R N R b RSb a V cR a N N NQQVaV N a a RcN bNaR T V T R NaV T R b a N Q a R Q N Q V P N V T b SV N PVN R b a dVaU aUR P N VR V b V Qb a f& N f S dUVPU R R a V V N ' 77E SV N PVN RN b R ( dRcR & b R R aNaV S aUR R ' 77E SV N PVN RN b R Nf QVSSR S aUR R R aNaV S V V N f aVa RQ RN b R Of aUR P N VR ( 7QWb aRQ ;8 I:7 V R S aUR Ra VP dUVPU b V aR N ObQTRa N R ON RQ N Q N R S aUR Ra VP Of dUVPU N NTR R a V P R NaRQ( LR OR VRcR aUNa V cR a U b Q UNcR NPPR a & N Q dR N R O VTNaRQ a cVQR& aUR N R Ra S a aUNa dR b R V N N fgV T b R b a ( IUR R ' 77E SV N PVN RN b R U b Q OR P VQR RQ V NQQVaV a R b a R N RQ V NPP QN PR dVaU 77E& Oba U b Q a OR P VQR RQ N bO aVabaR S b R V a 77E R b a ( LR R QRNc a P R NaR S aUR V VaNaV S aUR ' 77E RN b R R R aRQ Of cVQV T aUR P N NO R 77E RN b R dVaU R bN T RNaR V R PR N Q QR P V aV S aUR RP PV V T VaR & V P bQV T bN aVSfV T bPU VaR & a QR VcR aUR ' 77E RN b R( LR R P b NTR V cR a a ReN V R aUR RP PV V T NQWb a R a ORadRR aUR 77E N Q P R QV T ' 77E RN b R( aV R a aV R& dR cVQR S dN Q' XV T ba X V S NaV & V P bQV T S 7QWb aRQ ;8 I:7( 7QWb aRQ ;8 I:7 b RQ V b ba X dV QVSSR S Ra RN V T $ % N Q R NaV T V P R $ % V dNf V V N a aUR RP PV VNaV cVQRQ NO cR N Q aUR QRSV VaV S 7QWb aRQ ;8 I:7 cVQRQ OR d( 1I MRM MSRW S :SR& .. IEWYVIW .HNYW IH 2EVRMRKW /I SVI R IVIW E IW 1ITVIGME MSR ERH .QSV M E MSR .HNYW IH 2/ 1. $ V QRSV RQ N R NaV T V P R $ % ReP bQV T4 $ % a PX'ON RQ P R NaV Re R R5 $,% QR RPVNaV 5 $-% NP bV VaV ' R NaRQ VaR P V aV T S $V% N aVgNaV S V aN TVO R N Ra & $VV% V NV R a S T QdV N Q V aN TVO R N Ra & VS N VPNO R& N Q $VVV% TNV N Q R RP T VgRQ PUN TR V aUR SNV cN bR S P aV TR a P VQR NaV N N TR R a 5 N Q $.% R a bPab V T P a N PVNaRQ dVaU ReVa QV N NPaVcVaVR bPU N N RQbPaV V S PR( LR OR VRcR aUV RN b R V b RSb S N N f a N Q V cR a N aUV RN b R N d N R RN V TSb P N V ORadRR b R S N PR N Q aUNa S b P RaVa ( IUR NO cR VaR N R ReP bQRQ S b 7QWb aRQ ;8 I:7 RN b R ORPNb R aUR R VaR N R RVaUR 'PN U ' RPb V T V Nab R N Q N R P RPaVcR f RSR RQ a N 7QWb aRQ ;8 I:7 C ' 77E 7QWb a R a ( 7QWb aRQ ;8 I:7 UN PR aNV V VaNaV ORPNb R Va ReP bQR aUR V NPa S aUR R Re R R ( .HNYW IH 2/ 1. EVKMR V 7QWb aRQ ;8 I:7& QVcVQRQ Of RcR bR( :SR& .. VSWW VS M ReP bQR a PX'ON RQ P R NaV Re R R N Q R a bPab V T P a V P bQRQ V 9 a S RcR bR( :SR& .. VSWW EVKMR V C ' 77E E SVa& QVcVQRQ Of RcR bR( :SR& .. TIVE MRK 2 TIRWIW V P bQR C ' 77E GR RN PU N Q QRcR R a Re R R& C ' 77E HN R N Q N XRaV T Re R R& N Q C ' 77E R R N N Q NQ V V a NaVcR Re R R( IUR R C ' 77E R NaV T Re R R ReP bQR 7QWb aRQ ;8 I:7 C ' 77E 7QWb a R a V aURV R RPaVcR Re R R VaR ( 3VII 0EWL 3PS V QRSV RQ N Ra PN U b RQ V & cVQRQ Of& R NaV T NPaVcVaVR R PN U b RQ S PN VaN Re R QVab R & P aV TR a P VQR NaV N N TR R a V P bQRQ V R NaV T NPaVcVaVR N Q R a bPab V T P a ( LR OR VRcR RR 9N U d V b RSb a V cR a N N V bVQVaf RN b R ORPNb R Va RN b R b NOV Vaf a TR R NaR b R PN U( IQW LE .VI 2 GPYHIH 3VSQ :SR& .. IEWYVIW SGO&FEWIH GSQTIRWE MSR I TIRWI P V a S Re R R N PVNaRQ dVaU aUR T N a S KV R a PX'ON RQ NdN Q ( IUR R Re R R N R a NVQ V PN U N Q dR cVRd aUR RP VP P a S a PX'ON RQ NdN Q a OR aUR QV baV a b UN R ON R( LR N P VQR aUR QV baVcR V NPa S a PX'ON RQ NdN Q V 77E QV baRQ RN V T R UN R& a aUR ReaR a bPU V NPa V QV baVcR( 1ITVIGME MSR V N 'PN U Re R R R NaV T a b RN RU Q V cR R a N Q R bV R a N Q V P baRQ b V T aUR a NVTUa' V R RaU Q a N PNaR aUR P a S QR RPVNO R N Ra a R NaV cR aURV R aV NaRQ b RSb VcR & & V aUR PN R S RN RU Q V cR R a & aUR RN R aR & VS U aR ( 2
.QSV M E MSR S MR ERKMFPI EWWI W ERH MQTEMVQIR W S KSSH MPP ERH MR ERKMFPI EWWI W N R 'PN U Re R R R NaRQ a NP bV VaV ( 7a aUR aV R S N NP bV VaV & aUR VQR aVSVNO R QRSV VaR' VcRQ V aN TVO R N Ra S aUR NP bV RQ P N f& bPU N Pb a R R NaV UV & aRPU Tf N Q a NQR N R & N R cN bRQ N Q N aVgRQ cR aURV R aV NaRQ VcR ( 7 V NV R a V RP QRQ dUR aUR PN fV T cN bR S N V aN TVO R N Ra T QdV RePRRQ Va SNV cN bR( LR OR VRcR aUNa V aN TVO R N Ra R R R a P a V Pb RQ Of aUR NP bV RQ P N f a ObV Q cN bR V a NP bV VaV N Q aUR R NaRQ N aVgNaV N Q V NV R a S V aN TVO R N Ra T QdV & VS N VPNO R& N R a T V T P a S Q V T Ob V R ( EMRW ERH PSWWIW VIGSKRM IH SR GLERKIW MR LI EMV EPYI S GSR MRKIR GSRWMHIVE MSR EVVERKIQIR W N R NPP b aV T NQWb a R a a R a P aV TR a P VQR NaV VNOV VaVR Na SNV cN bR( IUR R NQWb a R a PN OR UVTU f cN VNO R N Q N R ReP bQRQ S b N R R a S R S N PR ORPNb R aURf N R P VQR RQ ' R NaV N V Nab R N Q& aUR RS R& N R a V QVPNaVcR S Pb R a Sbab R R S N PR aUR T V T P a S Q V T Ob V R ( IW VYG YVMRK GSW W P V a S P a N PVNaRQ dVaU ReVa QV N NPaVcVaVR bPU N RcR N PR N Q aUR a'R f R a OR RSVa NVQ V P RPaV dVaU N RQbPaV 'V 'S PR( LR P VQR aUR R P a a OR ' RPb V T V Nab R N Q aUR RS R& N R a V QVPNaVcR S Pb R a Sbab R R S N PR aUR T V T P a S Q V T Ob V R ( TIVE MRK I VMGW ERH I IVQW IP & IV I .HH& RW R NaR a b bO P V aV N Q QV RPa f V R& N Q N f NQQ' R cVPR aVRQ a aU R V R bO P V aV ( IUV V P bQR b HaN aR & HaN QN Q& N Q 7QcN PRQ bO P V aV N & N Q NQQ' R cVPR bPU N ON QdVQaU PUN TR & dUVPU N R Q aU bTU b N R S PR a bO P VOR S R S b N VS aURf RePRRQ N PR aNV aU R U Q S ON QdVQaU( BMQIS 2R IVTVMWI R NaR a b cVQR SSR V T QR VT RQ S aRN N Q TN VgNaV & dUVPU V P bQR aUR N R PN NOV VaVR S HR S'HR cR " 7QQ'D b R aR V R'T NQR SRNab R bPU N NQcN PRQ RPb Vaf& Pb a b R R V V & V T R' VT S R fRR & V aR NPaVcR cVQR a & N Q N XRaV T SadN R V aRT NaV ( KV R ; aR V R V Q aU bTU b N R S PR N Q V SaR N b T NQR S KV R HR S'HR cR " 7QQ'D N aUR b OR S b R b R PN R V N TN VgNaV T d ( LIV R NaR a QbPa N Q R cVPR dR SSR ba VQR S HR S'HR cR " 7QQ'D N Q KV R ; aR V R& V N V f b cR 'aUR' a $ DII % cVQR RaVgNaV baV aUNa N d Pb a R a Nb PU N Q b aURV d cVQR a RN V T PUN R QV RPa f a aURV NbQVR PR aU bTU N O N QRQ dRO aN & OV R N N Q aR Ra'R NO RQ IK N ( DaUR N V P bQR BNTV a & AVcR a RN & L G;L7M& N Q LVOOVag( YFWGVMFIVW V aUR b OR S b R dU UNcR N NPaVcR bO P V aV a R S KV R NVQ N RN b RQ Na aUR R Q S aUR R RcN a R V Q( KV R P b a RNPU NPP b a dVaU N bO P V aV N N N bO P VOR ( aUR PN R S Pb a R dU NV aNV NPP b a NP HR S'HR cR " 7QQ'D & KV R ; aR V R& N Q DaUR & KV R P b a aUR N R bO P VOR S RNPU S aUR P R a V dUVPU aURf NV aNV N bO P V aV ( KV R Q R a P b a aRN R OR dU UNcR NPPR a N bO P VOR NPP b a N NQQVaV N bO P VOR ( . IVEKI YFWGVMFIVW V aUR b S aUR b OR S HbO P VOR Na aUR ORTV V T N Q Na aUR R Q S aUR R RcN a RN b R R a R V Q QVcVQRQ Of ad ( . IVEKI I IRYI TIV AWIV . A $ V aUR N bN VgRQ RcR bR S aUR R RcN a R V Q QVcVQRQ Of 7cR NTR HbO P VOR ( R V Q aUNa N R R aUN N Sb fRN & N bN VgRQ RcR bR V PN Pb NaRQ Of QVcVQV T aUR RcR bR S aUNa N aVPb N R V Q Of aUR b OR S PN R QN QNf V aUR R V Q N Q b aV fV T aUV cN bR Of aUR b OR S QNf V aUNa fRN ( /SSOMRKW P V a S SVeRQ SRR S HNNH R cVPR & RN b RQ Na aUR R Q S aUR R RcN a R V Q& aUNa bO P VOR UNcR NVQ P VaaRQ a Nf Qb V T aURV bO P V aV R V Q , aU & dUVPURcR V U aR & R RSb Q N Q PUN TRONPX Qb V T aUR N R R V Q( VSWW EVKMR V RcR bR R P a S RcR bR& QVcVQRQ Of RcR bR( TIVE MRK RGSQI SWW$ EVKMR V D R NaV T V P R $ %& QVcVQRQ Of RcR bR( :I I IRYI I IR MSR : $ V N Ra VP dR a NPX S b KV R ; aR V R 9b a R aUNa V PN Pb NaRQ Na aUR R Q S aUR R RcN a R V Q& Of aNXV T aUR b S $N% N bN VgRQ bO P V aV RcR bR S KV R ; aR V R 9b a R Na aUR R Q S aUR R V Q aUNa N ReV aRQ adR cR aU V N Q $O% aUR cN VNO R RcR bR Naa VObaRQ a aUR R N R Pb a R cR aUR RPRQV T adR cR aU N Q QVcVQV T aUNa Of aUR N bN VgRQ bO P V aV RcR bR S N Pb a R aUNa ReV aRQ adR cR aU V b aUR cN VNO R RcR bR Naa VObaRQ a aUV N R Ra S Pb a R cR aUR adR cR aU V a aUNa QNaR( 3
1 A B2 20A 2 KV R UN cN V b QV baVcR RPb VaVR ( IUR aNO R OR d QRaNV aUR R RPb VaVR N dR N R aV NaRQ QV baV Na cN V b a PX VPR $ UN R V V V 5 b QV T QVSSR R PR Nf PPb %( LEVIW . K' 2 IVGMWI VMGI .W S ( ( ) , 1MPY MSR E - HUN R E VPR -( , .( 0( 2( ( 9 Ha PX Dba aN QV T N S ),), ,- 01(0 01(0 01(0 01(0 01(0 01(0 H7G N Q Ha PX D aV -(. /(/. h h h (. ,(0 GH .( 1(, 1(, 1(, 1(, 1(, I aN ; aV NaRQ :V baV 1(, 1(, 1(, 2(0 3(2 :V baV .(- .(- .(- /(, /(3 I aN ; aV NaRQ :V baRQ HUN R Dba aN QV T 1.(3 1.(3 1.(3 10(- 11(/ IUR QV baVcR RPb VaVR R R aNaV V PN Pb NaRQ b V T aUR RaU Q N Q N b aV QR P VORQ OR d& dUVPU N R QVSSR R a aUN aU R R P VORQ Of 77E( IUR R aV NaRQ QV baVcR RSSRPa dN PN Pb NaRQ N b V T aUR 9 N f Raa R R bVaf NdN Q N Ra ON V 5 aUR RS R& aUR QV baVcR RSSRPa V R R aRQ N aUR Ra b OR S UN R Re RPaRQ a OR V bRQ b cR aV T ReR PV R& NQWb aRQ S $V% aUR R aV NaRQ V P R aNe OR RSVa S aUR aNe QRQbPaV RPRVcRQ b aUR cR aV T ReR PV R S NdN Q UR Q V aUR (H(& N bPU aNe OR RSVa V N b RQ a OR b RQ a R b PUN R UN R S KV R P a PX N Q $VV% V aUR PN R S a PX aV & aUR a VXR VPR PRRQ aUNa N R RPRVcRQ Of aUR 9 N f N Q N b RQ a OR b RQ a R b PUN R UN R S KV R P a PX( IUR b OR S UN R R bV RQ a Raa R a PX N RPVNaV VTUa dV OR V NPaRQ Of cR R a V aUR a PX VPR S KV R ( ,
) - $ - 0EY MSREV E IQIR IKEVHMRK 3SV EVH& SSOMRK R SVQE MSR IUV R R RN R N Q aUR KV R VcR a RN dUVPU dV OR UR Q Na 24- N( ( ;N aR IV R C cR OR 1& , ,-& P aNV S dN Q' XV T aNaR R a dVaUV aUR RN V T S aUR E VcNaR HRPb VaVR AVaVTNaV GRS 7Pa S 33/( L Q bPU N dV & Nf& P b Q& U b Q& d b Q& N aVPV NaR & R aV NaR & Re RPa & N & WRPa & S RPN a & V aR Q & aN TRa & RRX N Q OR VRcR & N dR N cN VNaV S aUR R d Q P N NO R d Q & N T aUR & TR R N f VQR aVSf S dN Q' XV T aNaR R a ( IUR R S dN Q' XV T aNaR R a V P bQR& N T aUR & aNaR R a R NaV T a KV R Re RPaNaV RTN QV T Sbab R R b a S R NaV N Q SV N PVN P QVaV & Ob V R a NaRTf& N Q N N Q OWRPaVcR S N NTR R a S Sbab R R NaV ( dN Q' XV T aNaR R a N R ON RQ b N NTR R ai OR VRS N Q N b aV N Q V S NaV Pb R a f NcNV NO R( IUR R S dN Q' XV T aNaR R a N R bOWRPa a N b OR S X d N Q b X d V X & b PR aNV aVR N Q N b aV ( 7PabN R b a P b Q QVSSR NaR VN f S aU R P aNV RQ V V VRQ Of aUR R S dN Q' XV T aNaR R a ( NPa aUNa P b Q PNb R P a VObaR a bPU QVSSR R PR V P bQR& Oba N R a V VaRQ a 4 NQcR R PUN TR V RP VP P QVaV & PUN TR V aUR RTb Na f N Q PN R& V P bQV T& V N aVPb N & PUN TR V Nd aUNa VTUa V P RN R aUR VNOV Vaf S V R V aR RQVN VR S b R 'TR R NaRQ P aR a& R baNaV N QN NTR PNb RQ Of O R NaVP b R P aR a b QRPV V a R cR $ a R cR% Va5 PUN TR V VPVR V R R aRQ Of aUV Q N af NaS b dUVPU dR R f S a NSSVP N Q QV a VObaV S OV R N & V P RN RQ P RaVaV V aUR V R cVQR PNaRT f& b NOV Vaf a P cR a cV Va V a b NQR N Q b NQR V a NfV T bO P VOR & b NOV Vaf a RaNV NfV T bO P VOR Of NV aNV V T N Q V cV T b cN bR VaV & b NOV Vaf a cVQR cVQR a NTR N Q a RN V T V N P a'RSSRPaVcR N R & b NOV Vaf a bPPR Sb f Naa NPa N R 'N V aRQ Pb a R & b NOV Vaf a aRPa R VaVcR QNaN S b NbaU VgRQ NPPR & aUR V aRT Vaf& bN Vaf& PN NOV Vaf N Q RQb QN Pf S b f aR & aRPU Tf N Q V S N a bPab R $N Q aU R S aUV Q N aVR dVaU dUVPU dR Q Ob V R %& b NOV Vaf a bPPR Sb f R NaR V N Q Re N Q V a NQQVaV N V aR NaV N N XRa & b NOV Vaf a NQR bNaR f aRPa b V aR RPabN R af VTUa N Q a V S V TR aUR V aR RPabN R af VTUa S aUV Q N aVR & S RVT RePUN TR Pb R Pf NaR S bPabNaV & aUR V NPa S aUR 9DK :' 3 N QR VP N Q TR VaVPN RcR a b Ob V R & aUR VOV Vaf aUNa b UV a VPN P VQNaRQ N Q P OV RQ R b a Nf a OR V QVPNaVcR S b Sbab R R b a N Q aUR aUR SNPa Ra S aU V aUR RPaV aVa RQ GV X NPa V b 7 bN GR a ' @ S aUR SV PN fRN R QRQ :RPR OR - & , ,, SV RQ dVaU aUR HRPb VaVR N Q ;ePUN TR 9 V V $ H;9 % RO bN f ,1& , ,- N aURf Nf OR b QNaRQ Of b R V QVP R a bO R bR a f SV RQ dVaU aUR H;9& V P bQV T b FbN aR f GR a 'F a OR SV RQ dVaU aUR H;9 C cR OR 1& , ,-( DaUR b X d b RQVPaNO R SNPa aUNa P b Q N NQcR R f NSSRPa KV R i Ob V R & SV N PVN P QVaV N Q R b a S R NaV Nf N V R S aV R a aV R( VTUa S aUR R V X N Q b PR aNV aVR & aUR R S dN Q' XV T aNaR R a Nf a cR a OR NPPb NaR( 7PP QV T f& f b U b Q a NPR b QbR R VN PR aUR R S dN Q' XV T aNaR R a & dUVPU f RS RPa aUR cVRd S KV R i N NTR R a N S aUR QNaR S aUV P b VPNaV ( KV R Q R a b QR aNXR a b QNaR aUR R S dN Q' XV T aNaR R a ( .FSY BMQIS KV R $C7H:7F4KB;D% V aUR d Q a V cNaVcR cVQR Re R VR PR NaS ( LR R NO R N f R a P RNaR UVTU' bN Vaf cVQR Re R VR PR a P RPa ORaaR N Q O V T VQRN a VSR( LR bQ f R cR b T dV T P b Vaf S R aUN - V V b R h S P RNaVcR a faR R a T ON f QV a VObaRQ aRN Na aUR d Q N TR a P N VR ( ARN R Na ddd(cV R (P ( 0SR EG AW BMQIS R IW SV IPE MSRW @R SS V 6cV R (P BMQIS 0SQQYRMGE MSRW AV N 9UN R 6cV R (P ,
