Figure 1: First Quarter 2018 Core List Sector Holdings and S&P 500 Sector performance

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1 John L. Sheehan, CFA, Equity Sector Analyst Core List Strategy 2018 First Quarter Review The Core List Strategy (Core or Core List) is comprised of blue chip, industry-leading, companies that we believe can withstand the test of time. The objective is to provide a list of high-quality stocks that can be used to build a well-diversified portfolio or can be used to supplement an existing portfolio. The Core List underperformed the S&P 500 by roughly 120 basis points (100 basis points equals one percent) during first quarter The benchmark S&P 500 generated a -0.76% total return for the first quarter, while the Core List returned -1.95%. The Core List benefited from a relatively solid performance within the Financials and Health Care. In terms of weaker industry sectors, Technology, Energy, Consumer Staples and Consumer Discretionary weighed on Core List Performance as companies within these industries generated weaker returns during the quarter relative to corresponding S&P 500 sector performance. Returns for most other industry sectors on the Core List were essentially in line with their respective S&P industry sectors. Figure 1: First Quarter 2018 Core List Sector Holdings and S&P 500 Sector performance Source: FactSet, Wells Fargo Advisors. Performance numbers are through March 31, Past performance is not a guarantee of future results. Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value Please see pages 8-9 of this report for Important Disclosures, Disclaimers and Analyst Certification Page 1 of 9

2 Core List Quarterly Review April 2018 The Core List performance in the first quarter was negatively impacted by a smaller allocation to Information Technology and a larger allocation to Consumer Staples and Energy. Conversely, of the relatively smaller allocation within the Telecommunication Services sector was a positive contributor to Core List performance. With respect to security selection, recommendations within Financials, Health Care, and Utilities were positive contributors to performance. Security selection within the Information Technology, Energy, Consumer Discretionary and Industrial sectors detracted from Core List Performance. In terms of revisions to the Core List, during first quarter 2018, there was one addition (Starbucks Corporation, added January 16, 2018) and one removal (Kimberly-Clark Corporation, removed January 16, 2018). Returning Value to Shareholders We favor large companies that are considered industry leaders, and in addition companies with strong cashgenerating potential that may have established policies of returning value to shareholders either in the form of share buybacks or dividend policies that have withstood the test of time. Although it is not a requirement for inclusion in the Core List, many well-established industry-leading companies have historically been consistent dividend-paying companies. We believe the Core List stocks continue to be on-target returning value to shareholders in the form of dividends and/or share buybacks. Dividend increases (as a percent increase over the dividend paid the previous twelve months) for Core List stocks averaged roughly 10.4% for the twelve months ended March 31, This percentage change excludes one situation where a company (Allergan plc) initiated a common dividend in March The dividend initiation resulted in the company making only one quarterly common dividend payment in the twelve months ended March 31, 2017, which we feel has resulted in an abnormally high common dividend growth rate when compared with the twelve months ended March 31, 2018 (during which the company made four common dividend payments). When comparing common dividends paid by Core List companies in the twelve months ending March 31, 2018 to the common dividends paid in the twelve months ending March 31, 2017, we note common dividends at 48 companies have increased. Figure 2 details common dividend changes for Core List companies during the twelve months ended March 31, Page 2 of 9

3 Figure 2: Dividend Changes Through March 31, 2018 C ompany S ymbol Market Cap ($Millions ) Recent Pric e 2018 YTD Pric e Change Dividends Paid 12 Months E nded 3/31/18 3/31/17 Percent Change S ec tor Allergan plc AGN $52,340 $ % $2.82 $ % Health Care B roadcom Inc. AVG O $97,215 $ % $4.81 $ % Information T echnology Home Depot, Inc. HD $204,978 $ % $3.56 $ % C ons umer Dis cretionary O racle C orporation ORCL $189,219 $ % $0.76 $ % Information T echnology Landstar S ystem, Inc. LS TR $4,535 $ % $0.44 $ % Indus trials S tarbucks C orporation S BUX $81,641 $ % $1.10 $ % C ons umer Dis cretionary TJX Companies Inc TJX $51,798 $ % $1.25 $ % C ons umer Dis cretionary UnitedHealth G roup Incorporated UNH $227,773 $ % $3.00 $ % Health Care Illinois Tool Works Inc. ITW $54,056 $ % $2.99 $ % Indus trials Lowe's Companies, Inc. LOW $69,405 $ % $1.58 $ % C ons umer Dis cretionary NextE ra E nergy, Inc. NE E $75,732 $ % $4.06 $ % Utilities J PMorgan Chase & Co. JPM $379,533 $ % $2.18 $ % F inancials NIKE, Inc. Class B NK E $107,000 $ % $0.76 $ % C ons umer Dis cretionary Cisco Systems, Inc. CSCO $214,630 $ % $1.16 $ % Information T echnology V.F. C orporation VFC $30,676 $ % $1.76 $ % C ons umer Dis cretionary Apple Inc. AAPL $842,131 $ % $2.52 $ % Information T echnology Accenture Plc Class A ACN $94,153 $ % $2.54 $ % Information T echnology B B &T C orporation BBT $41,101 $ % $1.29 $ % F inancials Automatic Data Processing, Inc. ADP $51,725 $ % $2.40 $ % Information T echnology Aflac Incorporated AFL $35,360 $ % $0.92 $ % F inancials P aychex, Inc. PAY X $21,679 $ % $1.96 $ % Information T echnology Novartis AG S ponsored ADR * NVS $181,523 $ % $2.51 $ % Health Care Medtronic plc MDT $108,285 $ % $1.81 $ % Health Care Microsoft C orporation MS FT $731,975 $ % $1.65 $ % Information T echnology S ysco C orporation SYY $31,884 $ % $1.38 $ % Consumer S taples U.S. Bancorp US B $83,159 $ % $1.18 $ % F inancials P eps ic o, Inc. PEP $145,522 $ % $3.22 $ % Consumer S taples Becton, Dickinson and Company BDX $62,002 $ % $2.96 $ % Health Care Walgreens Boots Alliance Inc WBA $63,387 $ % $1.58 $ % Consumer S taples C oca-c ola C ompany KO $186,289 $ % $1.50 $ % Consumer S taples Danaher C orporation DHR $70,786 $ % $0.58 $ % Health Care Public S torage PSA $33,510 $ % $8.00 $ % R eal E s tate M&T B ank C orporation MTB $27,245 $ % $3.00 $ % F inancials J ohnson & J ohnson J NJ $339,769 $ % $3.36 $ % Health Care Praxair, Inc. PX $43,212 $ % $3.19 $ % Materials United Technologies C orporation UTX $98,357 $ % $2.76 $ % Indus trials O mnicom G roup Inc OMC $16,760 $ % $2.30 $ % C ons umer Dis cretionary Abbott Laboratories ABT $103,204 $ % $1.09 $ % Health Care S outhern Company SO $45,564 $ % $2.32 $ % Utilities Parker-Hannifin Corporation PH $23,468 $ % $2.64 $ % Indus trials Procter & G amble Company PG $185,577 $ % $2.76 $ % Consumer S taples E xxon Mobil C orporation XOM $334,881 $ % $3.08 $ % E nergy E OG R esources, Inc. EOG $65,929 $ % $0.69 $ % E nergy Colgate-Palmolive Company CL $59,060 $ % $1.60 $ % Consumer S taples Merck & Co., Inc. MR K $158,642 $ % $1.90 $ % Health Care Walmart Inc. WMT $256,765 $ % $2.04 $ % Consumer S taples C hevron C orporation CVX $232,964 $ % $4.36 $ % E nergy E mers on E lectric C o. E MR $44,522 $ % $1.93 $ % Indus trials Alphabet Inc. Class A GOOGL $748,504 $ 1, % $0.00 $ % Information Technology Apache C orporation APA $15,791 $ % $1.00 $ % E nergy Kinder Morgan Inc Class P KMI $36,516 $ % $0.50 $ % E nergy A verage 10.4% S ource: FactS et data and Wells Fargo A dvisors. Prices as of 4/20/18. * Novartis ' dividend reflects a 15% foreign tax withholding; current gros s dividend is $2.95 per s hare (bas ed upon 3/8/2018 C HF /US D exchange rate ** Average excludes AG N dividend growth rate given AG N initiated a common dividend in March 2017 Page 3 of 9

4 C ompany S ymbol R ecent Price Indicated Dividend Dividend Yield Market C ap ($mil) E nterprise Value ($mil) 52 W eek High 52 W eek Low S ub-industry Group C onsumer Discretionary Home Depot, Inc. HD $ $ % 204, ,476 $ $ Home Improvement R etail Lowe's Companies, Inc. LOW $ $ % 69,405 85,356 $ $ Home Improvement R etail NIKE, Inc. Class B NK E $ $ % 107, ,252 $ $ F ootwear Omnicom Group Inc OMC $ $ % 16,760 19,850 $ $ Advertising Starbucks Corporation SBUX $ $ % 81,641 82,663 $ $ R es taurants TJ X C ompanies Inc TJ X $ $ % 51,798 50,909 $ $ Apparel R etail V.F. C orporation VFC $ $ % 30,676 33,101 $ $ Apparel Accessories & Luxury Goods C onsumer S taples Coca-Cola Company KO $ $ % 186, ,444 $ $ S oft Drinks Colgate-Palmolive Company CL $ $ % 59,060 64,301 $ $ Household P roducts P epsic o, Inc. PEP $ $ % 145, ,172 $ $ S oft Drinks Procter & Gamble Company PG $ $ % 185, ,946 $ $ Household P roducts S ysco Corporation SYY $ $ % 31,884 39,842 $ $ F ood Distributors Walgreens Boots Alliance Inc WBA $ $ % 63,387 78,133 $ $ Drug R etail W almart Inc. W MT $ $ % 256, ,336 $ $ Hypermarkets & S uper Centers E nergy Apache Corporation APA $ $ % 15,791 24,031 $ $ Oil & Gas E xploration & P roduction Chevron Corporation CVX $ $ % 232, ,866 $ $ Integrated Oil & G as E OG Resources, Inc. E OG $ $ % 65,929 71,493 $ $ Oil & Gas E xploration & P roduction E xxon Mobil C orporation XOM $ $ % 334, ,598 $ $ Integrated Oil & G as Kinder Morgan Inc Class P KMI $ $ % 36,516 75,225 $ $ Oil & Gas S torage & Transportation Financials Aflac Incorporated AFL $ $ % 35,360 37,088 $ $ Life & Health Insurance BB&T Corporation BBT $ $ % 41,101 70,048 $ $ R egional B anks J P Morgan C hase & C o. JPM $ $ % 379, ,280 $ $ Diversified Banks M&T Bank Corporation MTB $ $ % 27,245 34,776 $ $ R egional B anks U.S. Bancorp US B $ $ % 83, ,609 $ $ Diversified Banks Health C are Abbott Laboratories ABT $ $ % 103, ,880 $ $ Health Care E quipment Allergan plc AGN $ $ % 52,340 83,374 $ $ Pharmaceuticals Becton, Dickinson and Company BDX $ $ % 62,002 83,479 $ $ Health Care E quipment Danaher Corporation DHR $ $ % 70,786 80,269 $ $ Health Care E quipment J ohnson & J ohnson J NJ $ $ % 339, ,068 $ $ Pharmaceuticals Medtronic plc MDT $ $ % 108, ,784 $ $ Health Care E quipment Merck & Co., Inc. MR K $ $ % 158, ,558 $ $ Pharmaceuticals Novartis AG S ponsored ADR NVS $ $ % 181, ,284 $ $ Pharmaceuticals UnitedHealth Group Incorporated UNH $ $ % 227, ,416 $ $ Managed Health Care Indus trials E merson E lectric Co. E MR $ $ % 44,522 46,977 $ $ E lectrical C omponents & E quipment Illinois Tool W orks Inc. ITW $ $ % 54,056 58,933 $ $ Industrial Machinery Landstar System, Inc. LSTR $ $ % 4,535 4,414 $ $ Trucking Parker-Hannifin Corporation PH $ $ % 23,468 28,388 $ $ Industrial Machinery United Technologies Corporation UTX $ $ % 98, ,917 $ $ Aerospace & Defense Information Technology Accenture Plc Class A ACN $ $ % 94,153 95,067 $ $ IT C onsulting & Other S ervices Apple Inc. AAPL $ $ % 842, ,112 $ $ Technology Hardware S torage & Peripherals Automatic Data Processing, Inc. ADP $ $ % 51,725 52,017 $ $ Data Processing & Outsourced S ervices Broadcom Inc. AVGO $ $ % 97, ,031 $ $ S emiconductors Cisco Systems, Inc. CSCO $ $ % 214, ,087 $ $ C ommunic ations E quipment Alphabet Inc. Class A GOOGL $ 1, $ , ,168 $ 1, $ Internet S oftware & S ervices Microsoft Corporation MSFT $ $ % 731, ,862 $ $ S y s tems S oftware Oracle Corporation ORCL $ $ % 189, ,468 $ $ S y s tems S oftware P aychex, Inc. PAYX $ $ % 21,679 21,315 $ $ Data Processing & Outsourced S ervices Materials Praxair, Inc. PX $ $ % 43,212 52,153 $ $ Industrial Gases R eal E state Investment Trusts (R E ITs) Public Storage PSA $ $ % 33,510 38,602 $ $ S pecialized R E ITs Utilities NextEra Energy, Inc. NEE $ $ % 75, ,701 $ $ E lectric Utilities S outhern Company SO $ $ % 45,564 96,136 $ $ E lectric Utilities *E stimates are consensus estimates from Factset. Please note that the price quote is not live. Prices as of 4/20/18 Dividends are not guaranteed and are subject to change or elimination. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in the list. S ource: FactS et data and W ells Fargo Advisors. Page 4 of 9

5 C ompany S ymbol EPS Estimates * R ecent Price FY1 FY2 FY1 FY2 3-yr Avg P/E E s t. L-T Growth R ate PEG (FY2) Debt to C apital R atio (%) Price to Book Fis cal Year E nd Las t R eported R es ults C onsumer Discretionary Home Depot, Inc. HD $ $ 9.44 $ % J an 02/20/2018 Lowe's Companies, Inc. LOW $ $ 5.49 $ % J an 02/28/2018 NIKE, Inc. Class B NK E $ $ 2.34 $ % J an 03/23/2018 Omnicom Group Inc OMC $ $ 5.64 $ % Dec 04/17/2018 S tarbucks Corporation S BUX $ $ 2.49 $ % J an 01/26/2018 TJ X C ompanies Inc TJ X $ $ 4.84 $ % J an 02/28/2018 V.F. C orporation VFC $ $ 3.08 $ % Dec 02/16/2018 C onsumer S taples Coca-Cola Company KO $ $ 2.10 $ % Dec 02/16/2018 Colgate-Palmolive Company CL $ $ 3.18 $ % N/A Dec 01/26/2018 P epsic o, Inc. PEP $ $ 5.71 $ % Dec 02/13/2018 Procter & Gamble Company PG $ $ 4.19 $ % J une 04/19/2018 S ysco Corporation SYY $ $ 2.95 $ % J une 02/05/2018 W algreens Boots Alliance Inc WBA $ $ 5.94 $ % Aug 03/28/2018 W almart Inc. W MT $ $ 4.93 $ % J an 02/20/2018 E nergy Apache Corporation APA $ $ 1.36 $ % Dec 02/22/2018 Chevron Corporation CVX $ $ 6.34 $ % Dec 02/02/2018 E OG Resources, Inc. E OG $ $ 4.48 $ ,511 37% Dec 02/28/2018 E xxon Mobil Corporation XOM $ $ 4.72 $ % Dec 02/02/2018 Kinder Morgan Inc Class P KMI $ $ 0.85 $ % Dec 04/19/2018 Financials Aflac Incorporated AFL $ $ 3.91 $ % Dec 02/01/2018 BB&T Corporation BBT $ $ 3.99 $ % Dec 04/19/2018 J P Morgan C hase & C o. JPM $ $ 8.94 $ % Dec 04/13/2018 M&T Bank Corporation MTB $ $ $ % Dec 04/16/2018 U.S. Bancorp US B $ $ 4.06 $ % Dec 04/18/2018 Health C are Abbott Laboratories ABT $ $ 2.86 $ % Dec 04/18/2018 Allergan plc AGN $ $ $ % J an 02/06/2018 Becton, Dickinson and Company BDX $ $ $ % S ept 02/06/2018 Danaher Corporation DHR $ $ 4.46 $ % S ept 04/19/2018 J ohnson & J ohnson J NJ $ $ 8.12 $ % Dec 04/17/2018 Medtronic plc MDT $ $ 4.73 $ % J an 02/20/2018 Merck & Co., Inc. MR K $ $ 4.19 $ % Dec 02/02/2018 Novartis AG S ponsored ADR NVS $ $ 5.26 $ % Dec 04/19/2018 UnitedHealth Group Incorporated UNH $ $ $ % Dec 04/17/2018 Indus trials E merson E lectric C o. E MR $ $ 3.13 $ % S ept 02/06/2018 Illinois Tool W orks Inc. ITW $ $ 7.70 $ % Dec 01/24/2018 Landstar S ystem, Inc. LS TR $ $ 5.61 $ % Dec 02/01/2018 Parker-Hannifin Corporation PH $ $ $ % J an 02/01/2018 United Technologies Corporation UTX $ $ 7.07 $ % Dec 01/24/2018 Information Technology Accenture Plc Class A ACN $ $ 6.70 $ % Aug 03/22/2018 Apple Inc. AAPL $ $ $ % S ep 02/02/2018 Automatic Data Processing, Inc. ADP $ $ 4.20 $ % J une 01/31/2018 Broadcom Inc. AVGO $ $ $ % J uly 03/16/2018 Cisco Systems, Inc. CSCO $ $ 2.58 $ % J uly 02/15/2018 Alphabet Inc. Class A GOOGL $ 1, $ $ % J uly 02/02/2018 Microsoft Corporation MS FT $ $ 3.64 $ % J une 02/01/2018 Oracle Corporation ORCL $ $ 3.08 $ % J uly 03/20/2018 P aychex, Inc. PAYX $ $ 2.51 $ % May 03/26/2018 Materials Praxair, Inc. PX $ $ 6.63 $ % Dec 01/25/2018 R eal E state Investment Trusts (R E ITs) Public S torage PSA $ $ $ % Dec 02/21/2018 Utilities NextE ra E nergy, Inc. NE E $ $ 7.73 $ % Dec 01/26/2018 S outhern Company SO $ $ 2.89 $ % Dec 02/21/2018 *E stimates are consensus estimates from Factset. Please note that the price quote is not live. Prices as of 4/20/18 Dividends are not guaranteed and are subject to change or elimination. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in the list. E PS estimates for Public S torage represent estimated Funds From Operations (FFO) S ource: FactS et data and W ells Fargo Advisors. P/E Page 5 of 9

6 Core Resources We provide a wide variety of resources to assist you and your Financial Advisor in developing a welldiversified portfolio. These resources include, but not limited to the following reports: Core List by Sector. The Core List By Sector is an easy to read representation of the Core List separated by sectors. This list is useful when equity ideas are needed for building portfolios from scratch, rebalancing or adjusting portfolio sector weightings. Sample Portfolio. The Sample Portfolio was a tool developed to demonstrate how the Core Recommendations can be utilized to create a list of stocks to build a portfolio. Although all equities on the Core List are suitable for inclusion in the Concept Portfolio (or any portfolio) at any given time, we evaluate the Concept Portfolio on a monthly basis and make appropriate changes to that list to reflect more shorter-term market, company and/or industry factors. Quarterly Performance Reports. The performance of the Core List is published on a quarterly basis, benchmarked against the S&P 500. In simple terms, the calculation of the performance of the list spans from the time a stock is added to the list to the time that it is removed. How can you participate? Tell your financial advisor that you would like to invest in companies that are included in the Core List. Work together to construct a well-diversified portfolio of an appropriate number of stocks based on the size of your portfolio. Select stocks from at least eight sectors of the eleven S&P 500 sectors spread across several industry groups. Although diversification is an important tool for helping to reduce risk, having a large number of individual stocks in your portfolio makes it increasingly difficult to keep track of each security's progress. In addition, if one stock represents only a fraction of the value of your portfolio, it will have less impact on the total return of your portfolio. Diversification does not guarantee a profit or protect against loss. Each client s needs are different. You and your financial advisor should determine whether a particular stock is suitable for you, keeping in mind how the stock will fit into your existing portfolio. Risks Although we believe that the companies on the Core List are outstanding companies with superior track records, past performance does not guarantee future results. We cannot be sure that the track record for these companies will remain superior. It is also possible that whatever superior traits the companies possess are entirely reflected in their stocks market prices. In that case, even historically superior operating results may lead to investment losses or returns that are not superior. There will be times when the stocks of companies that have less impressive track records may outperform stocks of fundamentally better companies. New companies, or newly public companies with no track records, will not qualify for the Core list. Yet these more speculative stocks may provide superior returns in exchange for the assumption of more risk. Smaller companies, in general, may also provide superior performance for periods of time. The Core list generally includes large companies; a portfolio of Core stocks will not capture small-stock performance. The prices of small and mid-cap company stocks are generally more volatile than large company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions. Investors who invest solely in a portfolio of Core stocks face benchmark risk. Some sectors and industries will have more companies that meet the requirements for the Core list than will others. Conversely, some economic sectors will be more heavily represented in the S&P 500 index, or other indexes, than they are on Page 6 of 9

7 the Core list. If the stocks in the sectors that are more heavily represented in various indexes were to turn in strong performances, it would be difficult for a portfolio of Core stocks to match or beat the index returns. Definitions The Core List Strategy is comprised of blue chip, industry-leading companies that we believe can withstand the test of time. The objective is to provide a list of high-quality stocks that can be used to build a welldiversified portfolio or can be used to supplement an existing portfolio. In an attempt to provide a more complete picture about the stocks that are on the Core List Strategy, we offer a few statistics about the companies. We periodically download these statistics from Factset. Bear in mind that prices and estimates are constantly changing, so as soon as we publish these numbers they re outdated. Market capitalization (cap): Diluted shares outstanding multiplied by the price. It s a measure of how large a company is and the stake that common shareholders have in the total enterprise. Current Dividend Yield: The current indicated dividend per share of a stock divided by its current price per share. For example, a stock with a price of $100 per share paying an indicated dividend of $5 per share annually would have a dividend yield of 5%. For the Dividend Changes statistics a harmonic average was applied, which is the mean of a set of positive variables calculated by dividing the number of observations by the reciprocal of each number in the series. Since the harmonic mean of a list of numbers tends to lean strongly toward the least elements of the list, it tends (compared to the arithmetic mean) to mitigate the impact of large outliers and exacerbate the impact of small ones. Also known as "harmonic mean". Enterprise value: A measure of the total size of a company. It s calculated by taking market capitalization plus debt, preferred shares and other equity stakes minus cash and cash equivalents. For banks and firms with a lot of debt, the enterprise value will be substantially larger than the market cap. For firms with a lot of cash, the enterprise value will be smaller than the market cap. Industry Group: As defined by S&P. Periodically, our Equity Strategists publish a list of industry groups that appear attractive over the short-term. Although we try to represent all sectors and industries, we use this information to better gauge particular industry outlook for equity inclusion and/or exclusion decisions. EPS Estimates, FY1, FY2: Consensus EPS estimates for the current uncompleted fiscal year (FY1) and for the next fiscal year (FY2). P/E: Price to earnings ratio based on FY1 and FY2 consensus estimates. A commonly used valuation metric. P/Es vary widely by sector. Three-year average P/E: The average price to earnings ratio during the last three years. Estimated Long-Term Growth Rate: From First Call, the analyst consensus estimate for the firm s long-term (five years or more) growth rate. In our experience, analysts tend to overestimate the growth potential for their companies and this number tends to be too high. PEG (P/E to Long-Term Growth Rate): A metric favored by some value investors who look to buy companies with a favorable long-term growth rate and attractive valuation or a PEG of less than 1. We calculate the PEG using the First Call estimated long-term growth rate and price to earnings ratio on next 12 months earnings. In our experience, a PEG ratio is helpful in industries where growth is relatively steady in a wide range of economic conditions. PEG ratios are not particularly helpful for cyclical sectors (energy, materials), slow growth sectors (financials), in situations where earnings are volatile (an early stage tech or biotech company), or growth is slowing significantly (a maturing technology company). Debt to capital ratio: A measure of how much debt an enterprise has versus it entire capital base. The capital base includes shareholders equity and debt. A lower number is generally better. Page 7 of 9

8 Price to book value: A valuation metric that compares the company s price to its book value. Book value is what is left over after subtracting liabilities from assets. This metric can be misleading if a company has a large amount of goodwill (which is treated as an asset) or the value of its assets is declining. Fiscal year end: The month in which a company s fiscal year ends. Last reported results: The date the company last reported its quarterly results. U.S. companies typically report quarterly while some European and companies report semi-annually. Notes All estimates contained in this report are consensus estimates from sources believed to be reliable. IMPORTANT DISCLOSURES: Disclosure information... For important disclosure information, please contact: Wells Fargo Advisors Attn: Advisory Services (Disclosure Information) One North Jefferson, St. Louis, MO Or call phone (888) Please remember to specify the issuer(s) with respect to which you would like to receive disclosure information. ANALYST CERTIFICATION: The Analyst who prepared this report hereby certifies that the views expressed in this report accurately reflect his/her personal views about the subject companies and their securities. The Analyst also certifies that he/she has not been, is not, and will not be receiving direct or indirect compensation for expressing the specific recommendation(s) or view(s) in this report. Disclaimers Pricing as of April 20, 2018, unless otherwise noted. Dividends can be increased, decreased or totally eliminated at any point without notice. The prices of mid-cap company stocks are generally more volatile than large company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions. Investing in foreign securities presents certain unique risks not associated with domestic investments, such as currency fluctuation and political and economic changes. This may result in greater share price volatility. These risks are heightened in emerging markets. Investments in the energy sector are subject to the adverse economic events within that industry. A downturn in the energy sector of the economy, adverse political, legislative or regulatory developments or other events could have a large impact on a portfolio s investments in this sector. Technology and Internet-related stocks, especially of smaller, less-seasoned companies, tend to be more volatile than the overall market. American depositary receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage. If the home currency is devalued, this can result in a loss to the ADR holder, even if the company had been performing well. Wells Fargo Advisors publishes several theme-based lists of recommended equity securities. Each list is based on a specific investment objective and time horizon which may be different from the other lists. This may cause Wells Fargo Advisors to recommend an equity security to be added to one list and removed from another list. Thus, one list may contain different recommendations or conclusions that could result in shortterm price movements contrary to the recommendations in another list. Page 8 of 9

9 Wells Fargo Advisors research analysts receive no compensation in connection with the firm s investment banking, sales and trading, or principal trading revenues. Analysts may be eligible for annual bonus compensation based on the overall profitability of the firm, which takes into account revenues derived from all the firm s business activities, including its investment banking business, sales and trading, and principal trading. The Advisory Services Group (ASG) of Wells Fargo Advisors works with information received from various resources including, but not limited to, research from affiliated and unaffiliated research correspondents as well as other sources. ASG does not assign ratings to or project target prices for any of the securities mentioned in this report. ASG receives research from affiliated and unaffiliated correspondent research providers with which Wells Fargo Advisors has an agreement to obtain research reports. Each correspondent research report reflects the different assumptions, opinions, and the methods of the analysts who prepare them. Any opinions, prices or estimates contained in this report is as of the date of this publication and is subject to change without notice. Additional information available upon request. Past performance is not a guide to future performance. The material contained herein has been prepared from sources and data we believe to be reliable but we make no guarantee as to its accuracy or completeness. This material is published solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or investment product. Opinions and estimates are as of a certain date and subject to change without notice. Wells Fargo Advisors is registered with the U.S. Securities Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors. Wells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC, and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company Wells Fargo Advisors, LLC. All rights reserved. Page 9 of 9