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22 May 2015 US Equity Insights It's time to buy the Big & Low 25 stock basket again as Energy names tall out The 25 stocks that most lower the S&P PE are attractive again. These stocks have big market cap and earnings weights and trade at low PEs vs. the S&P. These 25 stocks are: 9 Financials (JPM, C, WFC, BAC, GS, MET, PRU, AIG, COF), 8 Tech (AAPL, IBM, HPO, CSCO, MU, QCOM, INTC, ORCL), 2 Airlines (AAL, DAL), 2 Telecom (VZ, T), 2 Autos (GM, F), 1 Health Care (GILD), and 1 Energy (VLO). The aggregate PE on 2015 EPS of these 25 stocks is 12 vs. 20x for the S&P excluding them. We see value at Telecom, but return it to EW from the OW set Jan end and put Media/Cable back to EW rom UW. We OW Heath Care, Tech, Financials and Utilities. We UW Energy, Industrials and Materials. Figure 10125 stocks that lower the S&P 500 PE the most, i.e. stocks with big market cap and earnings weights and trade at low PEs vs. the S&P no- NAT* Sector Industry Market Pt on Earnings Cap ($bn) 201SEPS Weight Earnings Weight • (Stock 2015 PE - S&P 500 2015 PEI AAPL-US Apple Inc Information Technology Technology Hardware, Storage & Pell 757.6 14.1 5.04% -0.184 JPM-US JPMorgan Chase & Co Financials Banks 247.9 11.3 2.06% -0.132 C-US Citigroup Inc Financials Banks 166.5 10.0 1.57% -0.122 GILD-U5 Gilead Sciences inc Health Care Biotechnology 164.1 10.0 1.53% -0.119 IBM-US International Business I Information Technology IT Services 159.7 11.0 1.38% -0.093 AAL-US American Airlines Grew Industrials Airlines 30.9 5.0 0.67% -0.085 WFC-US Wells Fargo & Co Financials Banks 262.9 13.5 1.84% -0.078 BAC-US Bank of America Corp Financials Banks 176.1 12.3 1.33% -0.072 V2-US Verizon Communicatioi Telecommunication Services Diversified Telecommunication Servic 206.5 13.0 1.51% -0.071 GM-US General Motors Co Consumer Discretionary Automotoles 47.4 7.7 0.57% -0.058 GS-US Goldman Sachs Group I Financials Capital Markets 83.1 10.4 0.75% -0.055 MET-US Mod& Inc Financials insurance 59.5 9.0 0.63% -0.055 HPQ-US Hewlett-Packard Co Information Technology Technology Hardware, Storage & Peri 60.1 9.2 0.63% -0.054 T-US AT&T Inc Telecommunication Services Diversified Telecommunication Servic 179.7 13.6 1.23% -0.051 CSCO-Us Cisco Systems Inc Information Technology Communications Equipment 151.2 13.1 1.07% -0.050 F-US Ford Motor Co Consumer Discretionary Automobiles 60.5 9.6 0.60% -0.049 PRU-US Prudential Financial Inc Financials insurance 38.9 8.5 0.44% -0.040 AIG-US American International Financials insurance 82.3 12.0 0.64% -0.037 MU-US Micron Technology Inc Information Technology Semiconductors & Semiconductor Eq. 28.6 8.0 0.34% -0.033 VLO-US Valens Energy Corp Energy Oil, Gas & Consumable Fuels 31.0 8.6 0.34% -0.031 COF-US Capital One Financial C Financials Consumer Finance 47.1 11.0 0.40% -0.027 DAL-US Delta Aar Lines inc Industrials Airlines 36.0 10.3 0.36% -0.027 QCOM-US Quakomm Inc Information Technology Communications Equipment 114.3 14.4 0.76% -0.025 INTC-US Intel Corp Information Technology Semiconductors & Semiconductor fry 158.0 15.2 0.97% -0.025 ORCL-US Oracle Corp Information Technology Software 142.0 15.0 0.90% -0.024 S&P 500 18,816 17.7 The 25 Big & tow stocks 3,492 12.0 S&P ex. the 25 Big & Low stocks 15,324 20.0 Sane DIES. Dana* OVA Iiigrjre 11: Summary statistics on the 25 Big and Low S&P 500 stocks The 25 Big & Low Stocks Mkt Cap PE on Count Weight 2015 EPS Companies Financials 9 33% 11.4 J PM, C. WFC. BAC GS, MET, PRU, AIG, COP Information Technology 8 45% 13.4 AAPL, IBM, IIPQ, CSCO. MU, QCOM, INTC. ORCL Industrials 2 2% 6.2 AAL, DAL Telecommuriration Services 2 11% 13.3 V2. T Consumer Discretionary 2 3% 8.7 GM, F Energy 1 1% 8.7 VLO Health Care 1 5% 10.1 GILD All 25 100% 12.0 Sara ?6(S Gs.rscme Deutsche Bank Securities Inc. Payo 5 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL SDNY_GM_00205592 DB-SDNY-0059408 EFTA01367795