The Quantitative Side of Sustainable Investing Dow Jones Sustainability Indexes John A. Prestbo Editor & Executive Director, Dow Jones Indexes August 23, 2011 © CME Group Index Services LLC 2010. All rights reserved. Sustainability – Our Definition • A company’s capacity to prosper in a competitive and changing global business environment anticipating and managing current and future economic, environmental and social opportunities and risks. • Our approach focuses on companies who create longterm shareholder value. • From our perspective, sustainability investments are distinct from ethical investments by using a best-inclass approach and integrating economic, environmental, and social criteria. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 2 Sustainability Investing – Market Developments Sustainability Investing Market Growth Expectations Responsible Investing Market Growth AUM as % of total AUM Source: Robeco/Booz: Responsible Investing: A Paradigm Shift. From Niche to Mainstream. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 3 Dow Jones Sustainability Indexes (DJSI) • Cooperation between Dow Jones and SAM for the publication and licensing of the Dow Jones Sustainability Indexes (DJSI). Launched in 1999. • The indexes are maintained based on a consistent rules-based methodology. • A yearly review process and continuous monitoring of companies ensures that the focus remains on best-in-class companies. • By design, the indexes include high scoring companies in each sector. Benchmark indexes are market-cap weighted, while blue-chip indexes are weighted by sustainability score. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 4 DJSI – Index Range The DJSI family is currently comprised of Global, European, Eurozone, North American, US, Asia Pacific and Korean benchmarks. DJSI Europ e DJSI World •DJSI World 80 •DJSI World Alcohol •DJSI World Ex Tobacco •DJSI World Ex Gambling •DJSI World Ex Armaments & Firearms •DJSI World Ex Alcohol, Tobacco, Gambling, Armaments & Firearms •DJSI World Ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment •DJSI World Ex US •DJSI World Ex US 80 •DJSI World Ex US Ex Alcohol •DJSI World Ex US Ex Tobacco •DJSI World Ex US Ex Gambling •DJSI World Ex US Ex Armaments & Firearms •DJSI World Ex US Ex Alcohol, Tobacco, Gambling, Armaments & Firearms •DJSI World Ex US Ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment DJSI Asia Pacifi c •DJSI Asia Pacific 40 •DJSI Japan 40 •DJSI Asia Pacific Ex Alcohol, Tobacco, Gambling, Armaments & Firearms © CME Group Index Services LLC 2010. All rights reserved. •DJSI Europe 40 •DJSI Europe Ex Alcohol, Tobacco, Gambling, Armaments & Firearms •DJSI Europe Ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment DJSI North Americ a DJSI Korea •DJSI Korea 20 •DJSI Eurozone •DJSI Eurozone 40 •DJSI Eurozone Ex Alcohol, Tobacco, Gambling, Armaments & Firearms •DJSI Eurozone Ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment •DJSI North America 40 •DJSI North America Ex Alcohol, Tobacco, Gambling, Armaments & Firearms •DJSI United States •DJSI United States 40 •DJSI United States Ex Alcohol, Tobacco, Gambling, Armaments & Firearms Proprietary and Confidential | 5 Sustainability Assessment Features • Corporate sustainability assessment is designed to identify companies who actively embrace opportunities and manage risks deriving from economic, environmental, and social developments. • SAM has over 10 years of in-house experience in assessing companies through qualitative and quantitative measures. • Comprehensive research on sustainability practices involves detailed industry-specific questionnaires, direct company contact, and publically disclosed company documents. • Companies are monitored daily for newly arising critical issues, but are formally assessed annually. Annual updates to the questionnaires are made to reflect the shifting priorities of the global business environment. • Company scores are generated based on a defined set of criteria, and quality assurance measures exist internally and externally (Deloitte) to ensure integrity of the assessment. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 6 SAM Research Assessment Criteria % 100% 33% 57% 33% 43% 33% 20% Economic Dimension Environmental Dimension Social Dimension Total Industry Criteria General Criteria Actual weightings for the economic, environmental and social dimension may differ between industry groups to reflect the sector’s specific exposure to certain sustainability trends. The graph above is illustrative of the approximate weightings. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 7 SAM Research Criteria & Weightings Economic Corporate Governance Risk & Crisis Management Codes of Conduct/Compliance/Anti-Corruption & Bribery Industry Specific Criteria Environmental Environmental Reporting* Industry Specific Criteria Social Human Capital Development Talent Attraction & Retention Labor Practice Indicators Corporate Citizenship / Philanthropy Social Reporting* Industry Specific Criteria Weighting (in%) 6.0 6.0 6.0 Depends on Industry 3.0 Depends on Industry 5.5 5.5 5.0 3.0 3.0 Depends on Industry *Criteria assessed based on publicly available information only © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 8 DJSI World – Total Return Performance Comparison Period: August 1999 to June 2011 DJSI World vs. Global Indexes DJSI World [133.70] DJ Global LRG [152.04] MSCI ACWI LRG [137.47] 200 180 160 140 120 100 80 60 40 20 0 8/99 8/00 8/01 8/02 8/03 8/04 8/05 8/06 8/07 8/08 8/09 8/10 The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 9 DJSI World – Total Return Performance Comparison Period: August 1999 to June 2011 DJSI World vs. Global ex-U.S. Indexes DJSI World [133.70] DJSI World exUS [168.25] DJ Global xUS LRG [177.47] 250 200 150 100 50 0 8/99 8/00 8/01 8/02 8/03 8/04 8/05 8/06 8/07 8/08 8/09 8/10 The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 10 DJSI World – Total Return Performance Comparison Period: August 1999 to June 2011 DJSI World vs. North America and U.S. Indexes DJSI World [133.70] DJSI US [113.90] DJSI North America [124.27] DJ US LRG [130.27] 200 180 160 140 120 100 80 60 40 20 0 8/99 8/00 8/01 8/02 8/03 8/04 8/05 8/06 8/07 8/08 8/09 8/10 The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 11 DJSI World – Total Return Performance Total Return Performance Comparison Period: August 1999 to June 2011 Annualized Total Return 1-Year 3-Year 5-Year 10-Year Avail. Hist. (08/31/99) 30.27% -0.17% 2.46% 4.49% 2.48% Dow Jones Global Large-Cap Total Stock Market Index 30.55% 1.58% 3.75% 5.36% 3.60% MSCI All Country World Index Large Cap- Gross Dividends 29.84% 0.98% 3.52% 4.61% 2.73% 32.14% -1.08% 2.86% 6.07% 4.50% 29.84% 0.27% 4.06% 7.59% 4.97% Dow Jones Sustainability North America Index 28.25% 3.10% 3.09% 2.62% 1.85% Dow Jones Sustainability United States Index 27.77% 3.10% 2.55% 1.84% 1.11% Dow Jones U.S. Large-Cap Total Stock Market Index 31.52% 3.46% 3.37% 3.25% 2.26% Composite Dow Jones Sustainability World Index Global Indexes Global ex-U.S. Indexes Dow Jones Sustainability World ex US Index Dow Jones Global ex-U.S. Large-Cap Total Stock Market Index North America and U.S. Indexes The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 12 Performance Takeaway Annualized Percentage Total Return Underperformance improves over time *8/31/1999 © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 13 DJSI World – Risk Risk Comparison Period: August 1999 to June 2011 Annualized Standard Deviation 1-Year 3-Year 5-Year 10-Year Avail. Hist. (08/31/99) 17.22% 25.18% 20.90% 17.94% 18.14% Dow Jones Global Large-Cap Total Stock Market Index 14.97% 23.75% 19.90% 16.96% 17.10% MSCI All Country World Index Large Cap- Gross Dividends 15.17% 23.46% 19.66% 16.81% 17.01% Dow Jones Sustainability World ex US Index 19.00% 26.70% 22.19% 19.06% 19.16% Dow Jones Global ex-U.S. Large-Cap Total Stock Market Index 16.31% 26.41% 22.18% 18.76% 18.67% Dow Jones Sustainability North America Index 13.38% 21.70% 18.15% 16.17% 17.07% Dow Jones Sustainability United States Index 13.52% 20.85% 17.54% 15.90% 16.73% Dow Jones U.S. Large-Cap Total Stock Market Index 13.68% 21.16% 17.82% 15.70% 16.24% Composite Dow Jones Sustainability World Index Global Indexes Global ex-U.S. Indexes North America and U.S. Indexes The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 14 Volatility Takeaway Annualized Standard Deviation, in % Standard deviation differential improves over time, but will never catch up *8/31/1999 © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 15 DJSI World – Sharpe Ratio Sharpe Ratio Comparison Period: August 1999 to June 2011 Annualized Sharpe Ratio 1-Year 3-Year 5-Year 10-Year Avail. Hist. (08/31/99) 1.62 0.10 0.13 0.22 0.08 Dow Jones Global Large-Cap Total Stock Market Index 1.86 0.17 0.19 0.27 0.14 MSCI All Country World Index Large Cap- Gross Dividends 1.80 0.14 0.17 0.23 0.09 Dow Jones Sustainability World ex US Index 1.56 0.08 0.15 0.30 0.19 Dow Jones Global ex-U.S. Large-Cap Total Stock Market Index 1.68 0.13 0.20 0.37 0.21 Dow Jones Sustainability North America Index 1.93 0.23 0.15 0.11 0.04 Dow Jones Sustainability United States Index 1.88 0.23 0.12 0.06 -0.01 Dow Jones U.S. Large-Cap Total Stock Market Index 2.08 0.25 0.16 0.15 0.06 Composite Dow Jones Sustainability World Index Global Indexes Global ex-U.S. Indexes North America and U.S. Indexes The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 16 Sharpe Ratio Takeaway Annualized Sharpe Ratio Lower returns and higher volatility take their toll *8/31/1999 © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | DJSI World 80 & DJSI World ex US 80 Total Return Performance Annualized Total Return Comparison Period: September 2002 to June 2011 1-Year 3-Year 5-Year Avail. Hist. (09/30/02) Dow Jones Sustainability World Index 30.27% -0.17% 2.46% 9.59% Dow Jones Sustainability World 80 Index 31.67% -0.83% 3.19% 10.78% Dow Jones Sustainability World ex US Index 32.14% -1.08% 2.86% 11.55% Dow Jones Sustainability World ex US 80 Index 32.86% -2.37% 3.74% 12.25% Risk Annualized Standard Deviation Comparison Period: September 2002 to June 2011 1-Year 3-Year 5-Year Avail. Hist. (09/30/02) Dow Jones Sustainability World Index 17.22% 25.18% 20.90% 17.60% Dow Jones Sustainability World 80 Index 17.91% 25.52% 21.05% 18.48% Dow Jones Sustainability World ex US Index 19.00% 26.70% 22.19% 18.82% Dow Jones Sustainability World ex US 80 Index 18.80% 27.24% 22.54% 19.57% Sharpe Ratio Comparison Period: September 2002 to June 2011 Annualized Sharpe Ratio 1-Year 3-Year 5-Year Avail. Hist. (09/30/02) Dow Jones Sustainability World Index 1.62 0.10 0.13 0.49 Dow Jones Sustainability World 80 Index 1.63 0.08 0.16 0.54 Dow Jones Sustainability World ex US Index 1.56 0.08 0.15 0.57 Dow Jones Sustainability World ex US 80 Index 1.61 0.03 0.19 0.59 The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 18 Blue Chip Performance Takeaway Annualized Total Return, in % Better than their benchmarks *9/30/2002 © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 19 DJSI World – Maximum Drawdown Maximum Drawdown Comparison Period: September 2002 to June 2011 Cumulative Total Return Peak Date Trough Date Drawdown Duration (months) 1 Year After Peak Since Peak 1 Year After Trough Since Trough Required Back to Peak -56.18% Oct 2007 Feb 2009 16 -43.43% -16.57% 59.27% 90.40% 19.86% Dow Jones Sustainability World 80 Index -54.54% Oct 2007 Feb 2009 16 -39.62% -15.15% 55.71% 86.63% 17.85% Dow Jones Global Large-Cap Total Stock Market Index -54.55% Oct 2007 Feb 2009 16 -43.33% -11.26% 58.90% 95.24% 12.69% MSCI All Country World Index Large Cap- Gross Dividends -53.96% Oct 2007 Feb 2009 16 -42.13% -12.38% 57.14% 90.29% 14.13% Dow Jones Sustainability World ex US Index -57.04% Oct 2007 Feb 2009 16 -45.64% -17.58% 59.59% 91.84% 21.34% Dow Jones Sustainability World ex US 80 Index -56.99% Oct 2007 Feb 2009 16 -45.14% -18.44% 56.65% 89.61% 22.61% Dow Jones Global ex-U.S. Large-Cap Total Stock Market Index -57.34% Oct 2007 Feb 2009 16 -48.34% -14.79% 63.32% 99.75% 17.36% Dow Jones Sustainability North America Index -51.78% Oct 2007 Feb 2009 16 -36.44% -8.83% 56.78% 89.08% 9.69% Dow Jones Sustainability United States Index -50.88% Oct 2007 Feb 2009 16 -35.21% -9.70% 54.03% 83.84% 10.74% Oct 2007 Feb 2009 16 Maximum Drawdown Composite Dow Jones Sustainability World Index Global Indexes Global ex-U.S. Indexes North America and U.S. Indexes Dow Jones U.S. Large-Cap Total Stock Market Index -50.47% -36.00% -6.07% 53.36% 89.63% 6.46% The Dow Jones Sustainability World Index was first published in August 1999. To the extent this document includes information for the index for the period prior to its initial publication date, such information is back-tested (i.e., calculations of how the index might have performed during that time period if the index had existed). And the comparisons, assertions and conclusions regarding the performance of the index during such time period are based on back-testing. Back-tested information is purely hypothetical and is provided in this document solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 20 Drawdown Takeaway Cumulative Total Returns, in % Initial bear market recovery is in line, then starts to lag © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 21 DJSI World – Sector Allocation Weight by Industry (as of June 30, 2011) Dow Jones Global Total Stock Market Index Dow Jones Sustainability World Index 20.77% 20.13% Financials Consumer Goods 11.71% 13.43% Industrials 13.56% 12.24% 7.91% Health Care 8.94% Basic Materials Oil & Gas Telecommunications Utilities 0.00% © CME Group Index Services LLC 2010. All rights reserved. 11.22% 9.29% 9.82% Technology Consumer Services 11.62% 7.81% 5.43% 10.75% 9.22% 4.01% 4.68% 3.82% 3.63% 5.00% 10.00% 15.00% 20.00% 25.00% Proprietary and Confidential | 22 DJSI World – Regional Allocation Weight by Region (as of June 30, 2011) Dow Jones Global Total Stock Market Index Dow Jones Sustainability World Index 26.19% Europe 52.30% 49.67% Americas 33.29% 22.59% Asia-Pacific Africa Middle East 14.07% 0.94% 0.35% 0.61% 0.00% 0.00% 10.00% © CME Group Index Services LLC 2010. All rights reserved. 20.00% 30.00% 40.00% 50.00% 60.00% Proprietary and Confidential | 23 DJSI World – Size Allocation Weight by Size Segment (as of June 30, 2011) Dow Jones Global Total Stock Market Index Dow Jones Sustainability World Index 80.96% LRG 98.02% 11.21% MID 1.83% 7.49% SML 0.15% 0.33% MCR 0.00% 0.00% 10.00% 20.00% © CME Group Index Services LLC 2010. All rights reserved. 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Proprietary and Confidential | 24 DJSI World – Component Level Statistics Dow Jones Global Total Stock Market Index Index Composition Number of Holdings Total Float Market Cap Weighted Average Market Cap Coverage within TSM (%) Size of Companies [Count / % Float > $10B Market Cap] $5B - $10B $1B - $5B $200M - $1B < $200M Stock Concentration [Count / Weight] % Weight in Top 10 Holdings % Weight in Top 25 Holdings % Weight in Top 50 Holdings 1st Quintile 2nd Quintile 3rd Quintile 4th Quintile 5th Quintile Industry Concentration [Count / Weight] Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities 12,192 $35.60 Trillion $48.93 Billion 100.0% Dow Jones Sustainability World Index 324 $9.02 Trillion $77.14 Billion 25.3% 700 592 2,670 4,334 3,896 64.1% 11.8% 17.2% 5.9% 1.0% 182 92.1% 64 5.0% 78 2.8% 0 0.0% 0 0.0% 10 25 50 6.4% 12.5% 19.7% 10 19.1% 25 36.3% 50 55.2% 2,439 2,439 2,438 2,438 2,438 86.7% 8.6% 3.1% 1.3% 0.4% 65 63.5% 65 20.7% 65 9.3% 65 4.4% 64 2.1% 1,154 1,454 1,381 2,528 868 2,500 632 1,114 186 375 8.9% 11.7% 9.2% 20.8% 7.9% 13.6% 10.8% 9.3% 4.0% 3.8% 31 35 37 69 18 56 20 26 11 21 11.2% 13.4% 5.4% 20.1% 11.6% 12.2% 7.8% 9.8% 4.7% 3.6% Dow Jones Global Total Stock Market Index Market Concentration [Count / Weight] Developed Markets Emerging Markets Frontier Markets Regional Concentration [Count / Weight] Americas Asia-Pacific Europe Middle East Africa Country Concentration [Count / Weight] U.S. Japan U.K. Canada Australia Germany Brazil China India South Korea Other Liquidity Characteristics [Count / Percent] Avg Daily Traded Volume ($M) < $2.5M $2.5M - $5M $5M - $10M $10M+ N/A Ann Volume (% Shares Out) < 25% 25% - 50% 50% - 100% 100%+ N/A Dow Jones Sustainability World Index 8,526 3,126 540 85.7% 13.7% 0.6% 290 34 0 93.8% 6.2% 0.0% 4,538 5,077 1,997 387 193 49.7% 22.6% 26.2% 0.6% 0.9% 73 73 175 0 3 33.3% 14.1% 52.3% 0.0% 0.3% 3,819 1,394 356 457 332 154 109 185 481 717 4,188 41.9% 8.5% 7.8% 4.6% 3.3% 3.2% 2.0% 1.9% 1.6% 1.9% 23.3% 57 30 51 8 19 21 8 1 3 14 112 28.4% 4.6% 16.9% 2.8% 5.8% 8.2% 2.1% 0.5% 0.3% 2.0% 28.5% 6,735 1,350 1,148 2,959 0 55.2% 11.1% 9.4% 24.3% 0.0% 2 3 12 307 0 0.6% 0.9% 3.7% 94.8% 0.0% 3,170 2,002 2,346 4,561 113 26.0% 16.4% 19.2% 37.4% 0.9% 9 44 109 162 0 2.8% 13.6% 33.6% 50.0% 0.0% Source: Dow Jones Indexes, data as of 6/30/11 © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential | 25 Thank you for your attention. Questions? © CME Group Index Services LLC 2010. All rights reserved. Proprietary and Confidential |