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Eileen Conley
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1 Applied Portfolio Management Analysts: Elisa Gayle, Raul Guevara, Justin Pippitt and Jonathan Ramirez Bristol-Myers Squibb Company Sector: Healthcare HOLD Report Date: 3/27/212 Market Cap (mm) $55,1 Annual Dividend $1.33 Beta (S&P 5 Index).36 Return on Capital 6.5% Dividend Yield 4.1% Annualized Alpha 8.7% Compared With: EPS (ttm) $2.18 Price/Earnings (ttm) 15. Institutional Ownership 11.6% Pfizer Inc. Current Price $32.61 Economic Value-Added (ttm) $4,766 Short Interest (% of Shares) 1.6% Merck & Co. Inc. 12-mo. Target Price $34. Free Cash Flow Margin 22. Days to Cover Short 2.4 and the S&P 5 Index Business Description Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide. Its principal products include PLAVIX for protection against fatal or non-fatal heart attack or stroke; AVAPRO/AVALIDE for the treatment of hypertension and diabetic nephropathy; ELIQUIS to prevent and treat venous thromboembolic disorders and stroke prevention in atrial fibrillation; ABILIFY, an agent for adult patients with schizophrenia, bipolar mania disorder, and depressive PFE MRK Investment Thesis Total Revenue, EBIT, NOPAT, Dividends Per Share, Total Assets, EVA, and MVA all have acceptable positive 3-year CAGRs. The large decrease in FCF stems mainly from high investment in M&A, which is central to 's long-term strategy. The S&P 5 ttm return is almost 3 less than, which shows strong, consistent returns over the same period. Although DPS growth is low, has a long-term commitment to paying and growing dividends. s ROIC has increased 5 in the last 5 years, driven by strong NOPAT growth. has steadily increased its EVA, while maintaining positive MVA. This is in line with a high ROIC, low beta, and a low WACC. has been consistently undervalued since at least 26, by as much as 22 based on a DCF model. Even though the current price trend is correcting the undervaluation, as of yearend 211 remained significantly undervalued. ANNUALIZED 3-YEAR CAGR Total Revenue 6.2% Free Cash Flow % EBIT 7.5% Total Invested Capital -13.8% NOPAT 6.7% Total Assets 3.8% Earnings Per Share -25.9% Economic Value-Added 1.2% Dividends Per Share 2.1% Market Value-Added ^SPX ROA ROE ROIC Margins and Yields Operating Margin Free Cash Flow Margin Earnings Yield Dividend Yield Per Share Metrics Earnings Dividends NOPAT Free Cash Flow % 24.1% 29.9% 32.2% 32.9% 21.8% 21.8% 22.9% % 3.1% 7.3% 8.6% 6.7% 5.5% % 5.2% 4.1% (.39) $8, $7, $6, $5, $4, $3, $2, $1, EBIT Net Operating Profit After Tax $6, $5, $4, $3, $2, $1, Economic Value-Added Market Valued-Added $45, $4, $35, $3, $25, $2, $15, $1, $5, Price/Earnings Price/Free Cash Flow Datasource: Capital IQ

2 28 PRVit -- the Performance Risk Valuation investment technology from EVA Dimensions LLC PRVit is powered by EVA and EVA Momentum, registered marks of EVA Dimensions LLC BRISTOL-MYERS SQUIBB CO 96

2 2 28 PRVit -- the Performance Risk Valuation investment technology from EVA Dimensions LLC PRVit is powered by EVA and EVA Momentum, registered marks of EVA Dimensions LLC BRISTOL-MYERS SQUIBB CO Pharmaceuticals Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide. Its principal products include PLAVIX for protection against fatal or non-fatal heart attack or stroke; AVAPRO/AVALIDE for the treatment of hypertension and diabetic nephropathy; ELIQUIS to prevent and treat venous thromboembolic disorders and stroke prevention in atrial fibrillation; ABILIFY, an agent for adult patients with schizophrenia, bipolar mania disorder, and depressive disorder; and REYATAZ for the treatment of HIV. The company's principal products also comprise SUSTIVA for the treatment of HIV; BARACLUDE, an inhibitor of hepatitis B virus; ERBITUX to target and block the epidermal growth factor receptor; SPRYCEL for treatment of chronic myeloid leukemia in adults; YERVOY to treat metastatic melanoma; ORENCIA to treat moderate to severe rheumatoid arthritis in adults; NULOJIX to prevent solid organ transplant rejection; and ONGLYZA for the treatment of type 2 diabetes. Its products under Phase III clinical trials include Brivanib to block the VEGF and the FGF receptors; Dapagliflozin to treat diabetes; Necitumumab and Elotuzumab for anticancer treatment; and Daclatasvir for the treatment of hepatitis C virus. The company sells its products to wholesalers, as well as directly to distributors, retailers, hospitals, clinics, government agencies, and pharmacies. It has strategic alliances with Pfizer, Inc.; AstraZeneca PLC; Otsuka Pharmaceutical Co., Ltd.; Eli Lilly and Company; and Gilead Sciences, Inc. The company was formerly known as Bristol-Myers Company and changed its name to Bristol-Myers Squibb Company in Bristol-Myers Squibb Company was founded in 1887 and is headquartered in New York, New York. 29 Performance Score (P) Higher is better 95 P1 Profitability Financial strength in generating a return on capital over the full cost 25th 5th 75th % Russell EVA Margin (EVA/Sales) 12.4% -5.6%.6% 4.5% 93 EVA Spread (EVA/Capital) 19.4% -3.5%.7% 4.8% P2 Trend The growth rate in the firm's economic profit (its EVA) 25th 5th 75th % Russell EVA Momentum (vs Cap) 2.8% -1..7% 2.5% 77 3 Year Trend ( EVA/Cap) 3.2% -.5%.5% Last Quarter ( EVA/Cap) 4.3% -2.2%.5% 2.6% 83 Risk Score (R) Lower is better 17 R1 Volatility Variability in stock price and the EVA profit margin 25th 5th 75th % Russell Stock Price Volatility 19% 36% 45% 57% 2 EVA Margin Variability 2.1% 2.1% 4.5% R2 Vulnerability Leveraged, negative cash flow firms are suspect 25th 5th 75th % Russell Free Cash Flow Rate Op Cash Gen Return Total Debt/Total Capital Total Debt/EBITDAR 29% 6% % 52% 22% 11% 9 14% 8% 26% 45% Valuation Score (V) Lower is better 83 V1 Wealth Ratios Valuation multiples to book capital (as adjusted) 25th 5th 75th % Russell MVA Margin 17-3% 43% 139% 79 MVA Spread 286% -3% 35% 124% 88 4 V2 Wealth Multiples Valuation multiples to cash flow, earnings, EVA 25th 5th 75th % Russell EBITDAR Multiple NOPAT Multiple Future Growth Reliance % -7% 24% 64% 22 The PRVit Matrix: depicts a company s PRVit score by plotting its intrinsic value score what PRVit rates the firm is truly worth based on its risk-adjusted performance, i.e., its comparative P-R score against its actual valuation score which reflects the company s current trading multiples. Companies rated Hold plot along the diagonal, which is where the firms actual valuation multiples align with their intrinsic values. Buys plot in the upper right green zone, which is where PRVit rates the firms as worth more than their current share values, and Sells appear in the lower left red zone, where the firms P-R scores fall short of their V scores. The top grid rates the firms against the entire market, and the lower one ranks them against industry peers (which is the basis for the official PRVit score). Date Share Price PRVit Score (vs Market) Industry Median 4-Apr-12 $ PRVit Score (vs Industry) 93 's outstanding performance (96th percentile vs. Russell 3 companies), coupled with its low risk (31st percentile), indicates a very high intrinsic valuation is warranted (96th percentile), which compared to its actual market valuation (29th percentile at its $33.7 share price) makes for a PRVit score of 97th percentile vs. the market. 's PRVit score is at the 93rd percentile of all firms in its industry, which leads to a recommendation to Buy. is more attractively priced in relation to its true value than all but a few of the stocks in its industry. Intrinsic Value Vs. Russell 3 (P(96)-R(31)=96th Percentile) Intrinsic Value Vs. Industry (P(85)-R(29)=98th Percentile) Sell Underweight 2-39 Hold 4-59 PRVit Score Vs Market 97 8 PRVit Score Vs Industry Overweight 6-79 Buy Actual Valuation Vs. Russell 3 (V=29th Percentile) Actual Valuation Vs. Industry (V=34th Percentile) $25, $2, $15, $1, $5, Sales vs. Capital 12/6 12/7 12/8 12/9 12/1 12/ % 2 15% 1 5% ROC vs. COC 12/6 12/7 12/8 12/9 12/1 12/11 $45, $4, $35, $3, $25, $2, $15, $1, $5, Market Value Added (MVA) vs. EVA 12/6 12/7 12/8 12/9 12/1 12/11 $3, $2,5 $2, $1,5 $1, $ PRVit Scores 12/6 12/7 12/8 12/9 12/1 12/11 Sales Capital ROC COC MVA EVA Vs Market Vs Industry EVA Dimensions LLC l 15 Watersedge Court l Locust Valley, NY 1156 l Support Hot Line l support@evadimensions.com No part of this report may be reproduced or distributed in any form except to authorized licensees of EVA Dimensions LLC Copyright 21 All Rights Reserved

3 Bristol-Myers Squibb Company Sector Healthcare Stock Price $32.64 Report Date 3/27/212 Historical Income Statements Historical Balance Sheets ASSETS Total Revenue 16,28 15,617 17,715 18,88 19,484 21,244 Cash and Equivalents 2,18 1,81 7,976 7,683 5,33 5,776 Cost of Goods Sold 5,253 4,74 5,67 5,17 5,164 5,523 Short-Term Investments 1, ,268 2,957 Gross Profit 1,955 1,877 12,648 13,791 14,32 15,721 Total Cash & ST Invest. 4,13 2,225 8,265 8,514 7,31 8,733 SG&A Expense 5,769 5,25 5,212 4,872 4,628 5,131 Total Receivables 3,247 3,994 3,644 3,61 3,257 3,487 R&D Expense 2,936 2,998 3,164 3,3 3,424 3,64 Inventory 2,79 2,162 1,765 1,413 1,24 1,384 Dep. & Amort. Prepaid Expenses Other Oper. Exp. 13,958 12,763 13,443 13,189 13,216 14,258 Total Current Assets 1,32 1,12 14,697 13,958 13,273 15,318 Operating Income 2,25 2,854 4,272 5,619 6,268 6,986 Gross PPE 1,144 1,214 9,449 8,895 8,26 8,381 Interest Expense (498) (422) (31) (184) (145) (145) Accumulated Depr. (4,471) (4,564) (4,44) (3,84) (3,596) (3,86) Other Non-Oper. Exp Net PPE 5,673 5,65 5,45 5,55 4,664 4,521 EBT ex-unusuals 2,79 3,365 4,986 6,241 6,77 7,395 Long-Term Investments ,545 2,915 3,44 Total Unusual Exp. (624) (842) (21) (639) (636) (414) Goodwill 4,827 4,998 4,827 5,218 5,233 5,586 Earnings Before Tax 2,85 2,523 4,776 5,62 6,71 6,981 Total Assets 25,575 25,926 29,486 31,8 31,76 32,97 Income Tax Expense ,9 1,182 1,558 1,721 LIABILITIES AND EQUITY Net Income 1,585 2,165 5,247 1,612 3,12 3,79 Accounts Payable 1,239 1,442 1,535 1,711 1,983 2,63 Accrued Expenses 3,155 3,714 3,69 3,226 3,435 3,871 Diluted EPS Short-Term Debt 187 1, Total Diluted Shares 1,963 1,999 1,978 1,727 1,717 1,717 Total Current Liab. 6,496 8,398 6,71 6,313 6,739 7,78 Dividends Per Share Long-Term Debt 7,248 4,381 6,585 6,13 5,328 5,376 Pension Benefits ,285 1,658 1,297 2,17 Effective Tax Rate 2.7% 22.8% 22.8% 25.7% 24.7% 24.7% Total Liabilities 15,584 15,364 17,278 16,223 15,438 17,13 Earnings Per Share Preferred Equity Total Common Shares 1,96 1,977 1,974 1,713 1,7 1,7 Common Stock & APIC 2,846 2,942 2,977 3,988 3,92 3,334 EBITDA 3,16 5,26 6,266 6,94 7,75 7,75 Retained Earnings 19,845 19,762 22,549 3,76 31,636 33,69 EBIT 2,25 4,272 5,619 6,268 6,986 6,986 Treasury Stock (1,927) (1,584) (1,566) (17,364) (17,454) (17,42) EBITDAR 3,255 5,193 6,398 7,85 7,841 7,841 Total Common Equity 9,991 1,562 12,241 14,843 15,713 15,956 Free Cash Flow/Share Total Equity 9,991 1,562 12,28 14,785 15,638 15,867 Year-end Stock Price $26.42 $22.61 $17.74 $24.72 $25.39 $32.61 Total Liab. and Equity 25,575 25,926 29,486 31,8 31,76 32,97 $25, $2, $15, $1, $5, Total Revenue Net Income $6. $5. $4. $3. $2. $1.. Earnings Per Share Dividends Per Share $9, $8, $7, $6, $5, $4, $3, $2, $1, EBITDA EBIT Performance Analysis. Datasource: CapitalIQ Historical Performance, Page 1 of 4 Analysts: Elisa Gayle, Raul Guevara, Justin Pippitt and Jonathan Ramirez

4 Margins Relative Valuation Gross Profit Margin 67.6% 69.6% 71.4% 73.3% 73.5% 74. Price/Earnings Operating Profit Margin 13.9% 18.3% 24.1% 29.9% 32.2% 32.9% Price/Book Net Profit Margin 9.8% 13.9% 29.6% 56.4% 15.9% 17.5% Price/Free Cash Flow Free Cash Flow Margin 8.6% 21.8% 21.8% 22.9% Earnings Yield 3.1% 11.7% 3.1% 7.3% 8.6% 6.7% Dividend Yield 4.2% 5.5% % 5.2% 4.1% Gross Profit Margin Operating Profit Margin Price/Earnings Price/Free Cash Flow 35% 3 25% 2 15% 1 5% Earnings Yield Dividend Yield Liquidity and Debt Profitability Current Ratio Net Profit Margin 9.8% 13.9% 29.6% 56.4% 15.9% 17.5% Quick Ratio Total Asset Turnover Days Sales Outstanding Equity Multiplier Inventory Turnover Return on Assets 6.2% 8.4% 17.8% 34.2% % Long-Term Debt to Equity 72.5% 41.5% 53.9% 41.5% 34.1% 33.9% Return on Equity 15.9% 2.5% % 19.8% 23.4% Total Debt to Assets 29.1% 24.2% 22.9% 2.4% 17.5% 16.7% Return on Invested Capital 2.7% % 6.5% Times Interest Earned Current Ratio Quick Ratio Days Sales Outstanding Inventory Turnover Total Debt to Assets Long-Term Debt to Equity Net Profit Margin Free Cash Flow Margin Total Asset Turnover Equity Multiplier ROA ROE ROIC Performance Analysis. Datasource: CapitalIQ Historical Performance, Page 2 of 4 Analysts: Elisa Gayle, Raul Guevara, Justin Pippitt and Jonathan Ramirez

5 $16, $14, $12, $1, $8, $6, $4, $2, Net Fixed Assets Total Invested Capital Capital, NOPAT & FCF Net Oper. Working Capital 2,95 2,81 8,16 7,22 4,76 4,173 Net Fixed Assets 5,673 5,65 5,45 5,55 4,664 4,521 Total Invested Capital 8,623 8,451 13,565 12,275 8,74 8,694 Net Oper. Profit After Tax 1,785 3,297 4,337 4,659 5,264 5,264 Free Cash Flow N/A 3, ,949 8,799 5,31 Compared With: NOPAT Per Share Pfizer Inc. Free Cash Flow Per Share N/A Merck & Co. Inc. Return on Invested Capital 2.7% % 6.5% S&P 5 Index $1, $8, $6, $4, $2, Net Oper. Profit After Tax Free Cash Flow PFE MRK ^SPX -$2, Cost of Capital 211 Weight % Cost Wgt Cost Value Creation Equity Capitalization 55,1 9.9% % Economic Value-Added 1,291 2,813 3,56 3,957 4,764 4,766 Total Debt 5, % 4.5%.3% Market Valued-Added 41,773 41,98 33,785 35,177 29,612 39,144 Preferred Stock... PV of Future FCFs 128, , , , , ,489 Value of All Securities 6, Value of Non-Oper. Assets 4,13 2,225 8,265 8,514 7,31 8,733 Effective Tax Rate 24.7% Long-Term Growth Rate: Total Intrinsic Firm Value 132, , , , , ,222 Risk-Free Rate 2.4% 2. Intrinsic Value of Equity 125, , , , , ,731 Beta.46 Alternative Beta: Per Share Intrinsic Value $63.89 $64.38 $72.11 $84.21 $84.15 $86.62 Market Risk Premium Year-End Stock Price $26.42 $22.61 $17.74 $24.72 $25.39 $32.61 CAPM Cost of Equity 6. Over (Under) Valuation/Sh ($37.47) ($41.77) ($54.37) ($59.49) ($58.76) ($54.1) Weighted Average Cost of Capital: 5.7% % Over (Under) Valued % % -36.5% -24.7% % % % 26.2% 32.2% 54.5% 54.8% 6, 5, 4, 3, 2, 1, Economic Value-Added Market Valued-Added 45, 4, 35, 3, 25, 2, 15, 1, 5, $1 $8 $6 $4 $2 Year-End Stock Price Per Share Intrinsic Value ($1) ($2) ($3) ($4) ($5) ($6) ($7) Over (Under) Valuation/Sh % Over (Under) Valued Performance Analysis. Datasource: CapitalIQ Historical Performance, Page 3 of 4 Analysts: Elisa Gayle, Raul Guevara, Justin Pippitt and Jonathan Ramirez

6 Historical Performance Diffusion Index Revenues, Profits and Dividends 2. Liquidity and Debt 1. Total Revenue 1 Current Ratio 1 EBITDA 1 Quick Ratio 1 EPS 1 Days Sales Outstanding 1 DPS 1 Inventory Turnover 1 Gross, Operating and Net Margins 15. Total Debt/Assets 1 Gross Profit Margin 1 Long-Term Debt/Equity 1 Operating Profit Margin 1 NOPAT, Total Invested Capital, FCF 15. Net Profit Margin NOPAT 1 Free Cash Flow Margin 1 Total Invested Capital Relative Valuation 15. Free Cash Flow 1 Price/Earnings Value Creation 15. Price/Free Cash Flow Economic Value-Added 1 Earnings Yield Market Value-Added 1 Dividend Yield 1 Intrinsic Value 1 Profitability 1. ROA 1 Score (max = 1) 8. ROE 1 ROIC 1 Weights 1. Performance Analysis. Datasource: CapitalIQ Historical Performance, Page 4 of 4 Analysts: Elisa Gayle, Raul Guevara, Justin Pippitt and Jonathan Ramirez

Verizon Communications Inc. Sector: Telecommunication Services Hold

Applied Portfolio Management Analysts: Travis Hirt, Brandon Holle and Mark Latimer VZ Verizon Communications Inc. Sector: Telecommunication Services Hold Report Date: 4/4/25 Market Cap (mm) $85,94 Annual