S&P 500 Q1 Buybacks Jump 12%

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1 S&P 500 Q1 Buybacks Jump 12% $589.4 billion in buybacks for the 12-month period ending March 2016, a new record Companies make good on their Q1 promise to support stocks Issue level buybacks significant impact on EPS continues to increase, as 28.2% of S&P 500 issues participate NEW YORK, JUNE 22, 2016: ( S&P DJI ) announced today preliminary results showing that S&P 500 Q stock buybacks, or share repurchases, increased 12% to $161.4 billion, up from the $144.1 billion reported in Q Q was the second largest expenditure on record, following the $172 billion spent in Q For the 12-months ending in March 2016, S&P 500 issues spent $589.4 billion on buybacks, up 9.5% from the $538.1 billion spent in the same period of The 12-month expenditure set a new S&P 500 record, replacing the $589.1 billion spent in Quarter-over-quarter comparison shows that the $161.4 billion spent on share repurchases in Q is a 10.6% from the $145.9 billion posted in Q Historical S&P 500 buyback data can be found at: According to : The $161.4 billion spent in Q represents a 10.6% increase from Q and a 12% increase from Q For the 12-month period ending March 2016, S&P 500 issues increased their buyback expenditures by 9.5%, to $589.4 billion, up from $538.1 billion posted for the corresponding 2015 period, setting a new 12-month record, replacing the record set in December 2007 ($589.1 billion). The Health care sector increased 86.1% to $30.6 billion for the quarter, up from the prior quarter s $16.5 billion, as Gilead Sciences (GILD) spent $8 billion (ranking as the 18 th largest in S&P 500 history). The Energy sector conducted only minor buybacks ($2.1 billion), as it posted a 20.6% decline for the quarter and a 62.9% decline from Q For the ninth consecutive quarter, more than 20% of the S&P 500 issues reduced their yearover-year diluted share count by at least 4%, therefore boosting their earnings-per-share (EPS) by at least 4%. The participation rate for significant EPS impact rose to 28.2% for Q1 2016, up from 25.8% in Q Total shareholder return, dividends plus buybacks, set a quarterly record of $257.6 billion in Q and a 12-month record of $974.6 billion for the period ending in March The Q uptick in buybacks was a surprise to many in the market, but it continued in Q1 2016, said Howard Silverblatt, Senior Index Analyst at. The pace of buybacks was partially driven by companies supporting their stock during the opening downturn of the year, which coincidentally started in early February when many earnings lock-ups ended. The upswing in both expenditures and participation appears to persist in the market, meaning that the upturn in Q4 was not

2 a single-shot. Looking at Q2 2016, the share count reduction trend is already baked in, as more than 20% of the issues have reduced their share count by at least 4% from Q Additionally, data shows: Issues reducing their share count this quarter increased to 334 from 318 in Q and 299 in Q Significant changes (generally considered 1% or greater for the quarter) remained strong, as 147 issues reduced their share count by at least 1%, compared to 152 in Q and 116 in Q Year-over-year share count reduction (impacts of at least 4%) increased for the fifth consecutive quarter, to 139, up from 120 in Q and 104 in Q Total Shareholder Returns: Silverblatt notes that total shareholder return through regular cash dividends, as well as buybacks, set a record quarter at $257.6 billion, up from the previous record of $245.3 billion, which was set in Q Dividends, which had posted seven consecutive quarters of record payments, declined in Q1 2016, as energy dividend cuts pulled the aggregate down. For the 12-month period ending March 2016, companies returned a record $974.6 billion in buybacks and dividends to investors, marking its fourth consecutive record and surpassing the prior record (annual or 12-months) of $954.6 billion, set in Q According to Silverblatt, cash reserves also set a new record, increasing 1.6%, as S&P 500 Industrial (Old) available cash and equivalent now stands at $1.347 trillion, up 1.1% from the prior record $1.333 trillion set at the end of Silverblatt adds that the current cash level is 86 weeks of expected 2016 operating income, giving corporations leeway in their expenditures. Shareholder returns continue to increase, as companies remain awash with cash and have access to low-cost financing especially in Europe and Asia, said Silverblatt. The rate of dividend increases has slowed, as commodity-based issues remain a major uncertainty. Given the current cash-flow, projections, and an expected slow and measured pace of interest rate increases in the U.S. by the FOMC, companies have the ability to increase returns, as they remain under continued pressure from outside investors. Sectors: Information Technology continued to dominate buybacks (and cash holdings), even as their percentage of Q1 S&P 500 buybacks decreased to 21.5% from 24.4% in Q Energy continued to decline, falling to 1.3%, from 1.8% in Q and 8.2% in Q Health care increased 86.1%, accounting for 19% of all buybacks, up from 11.3% in Q and 14.5% in Q Also notable was Consumer Staples, which declined by 28.6% to $11.7 billion, down from $16.4 billion in Q For the quarter, Gilead Sciences (GILD) spent the most at $8 billion, up from their prior quarter s $3.1 billion, marking the 18 th largest quarterly buyback by an S&P 500 constituent in history. Apple (AAPL) was second, with $6.7 billion, slightly down from its prior quarter s $6.9 billion. General Electric (GE) came in third with $6.3 billion, up from its prior quarter s $1.7 billion. Pfizer (PFE) and McDonald s (MCD) rounded out the top five, spending $5 billion and $4.3 billion, respectively. Exxon Mobil (XOM) ranked 58 th, down from last quarter s ranking of 53rd, with $0.73 billion, continuing its retreat from the $3.9 billion it spent in the Q when oil was averaging $100/barrel. 2

3 For more information about, please visit S&P 500, $ U.S. BILLIONS (preliminary in bold) PERIOD OPERATING AS REPORTED DIVIDEND & DIVIDENDS EARNINGS EARNINGS DIVIDENDS BUYBACKS DIVIDEND BUYBACK BUYBACK & BUYBACKS $ BILLIONS $ BILLIONS $ BILLIONS $ BILLIONS YIELD YIELD YIELD $ BILLION 12 Mo Mar,'16 $ $ $ $ % 3.30% 5.46% $ Mo Mar,'15 $ $ $ $ % 3.01% 5.04% $ $ $ $ $ % 3.19% 5.33% $ $1, $ $ $ % 3.20% 5.23% $ $ $ $ $ % 3.18% 5.27% $ (mkt val avg) 3/31/2016 Prelim. $ $ $96.26 $ % 3.28% 5.43% $ /31/2015 $ $ $99.39 $ % 3.20% 5.33% $ /30/2015 $ $ $95.07 $ % 3.30% 5.53% $ /30/2015 $ $ $94.45 $ % 3.04% 5.07% $ /31/2015 $ $ $93.55 $ % 2.94% 4.92% $ /30/2014 $ $ $92.80 $ % 3.03% 4.95% $ /30/2014 $ $ $89.02 $ % 3.14% 5.10% $ /30/2014 $ $ $86.65 $ % 3.06% 4.98% $ /31/2014 $ $ $81.96 $ % 3.20% 5.14% $ /31/2013 $ $ $84.98 $ % 2.88% 4.77% $ /30/2013 $ $ $79.26 $ % 2.98% 5.03% $ /30/2013 $ $ $76.67 $ % 2.94% 5.02% $ /31/2013 $ $ $70.86 $ % 2.97% 5.02% $ /31/2012 $ $ $79.83 $ % 3.13% 5.33% $ /30/2012 $ $ $69.48 $ % 3.01% 5.08% $ /30/2012 $ $ $67.31 $ % 3.27% 5.35% $ /31/2012 $ $ $64.07 $ % 3.14% 5.09% $ /31/2011 $ $ $65.89 $ % 3.56% 5.67% $ more- 3

4 S&P 500 SECTOR BUYBACKS SECTOR $ MILLIONS Q1,'16 Q4,'15 Q1,'15 12MoMar,'16 12MoMar,'15 5-YEARS 2007 YR Q2,'09 (high) (low) Consumer Discretionary $26,671 $22,949 $19,230 $99,480 $82,367 $389,541 $80,435 $2,350 Consumer Staples $11,708 $16,394 $10,873 $45,725 $41,190 $225,015 $51,589 $4,013 Energy $2,053 $2,587 $5,538 $11,765 $33,375 $170,590 $67,031 $5,343 Financials $26,706 $25,018 $22,526 $98,737 $79,668 $345,542 $107,328 $1,170 Healthcare $30,626 $16,457 $20,897 $80,049 $65,152 $338,668 $63,775 $4,699 Industrials $26,229 $19,827 $20,124 $86,218 $64,818 $291,210 $54,806 $1,681 Information Technology $34,682 $35,516 $34,976 $150,033 $140,497 $602,871 $121,974 $4,757 Materials $2,402 $6,332 $4,397 $13,526 $24,043 $67,775 $13,586 $159 Telecommunication Services $12 $547 $5,185 $1,049 $5,887 $36,485 $17,627 $13 Utilities $296 $253 $386 $2,830 $1,134 $8,860 $10,963 $10 TOTAL $161,385 $145,881 $144,133 $589,411 $538,131 $2,476,557 $589,113 $24,195 S&P LARGEST Q BUYBACKS, $ MILLIONS Company Ticker Sector Q1,'16 12 Mo Mar,'16 12 Mo Mar,'15 5-Year 10-year Indicated Buybacks Buybacks Buybacks Buybacks Buybacks Dividend $ Million $ Million $ Million $ Million $ Million $ Million Gilead Sciences GILD Healthcare $8,000 $14,101 $7,900 $25,535 $34,107 $2,570 Apple AAPL Information Technology $6,667 $36,783 $34,000 $116,643 $116,645 $12,642 General Electric GE Industrials $6,326 $8,060 $44 $25,732 $54,020 $8,584 Pfizer PFE Healthcare $5,000 $5,160 $8,480 $44,815 $60,751 $7,258 McDonald's MCD Consumer Discretionary $4,312 $9,805 $3,366 $19,995 $35,859 $3,210 Microsoft MSFT Information Technology $3,857 $16,571 $11,334 $45,696 $120,706 $11,389 Boeing BA Industrials $3,501 $7,752 $6,001 $18,054 $24,666 $2,889 American International Gr AIG Financials $3,486 $12,779 $5,433 $32,746 $39,780 $1,471 Express Scripts Holding ESRX Healthcare $3,109 $8,609 $3,875 $19,673 $23,491 $0 Wal-Mart Stores WMT Consumer Staples $2,735 $6,567 $669 $23,246 $55,012 $6,404 Johnson & Johnson JNJ Healthcare $2,389 $5,481 $8,548 $33,350 $55,048 $8,830 Oracle ORCL Information Technology $2,214 $10,557 $8,062 $43,748 $57,164 $2,521 Alphabet GOOGL Information Technology $2,098 $3,878 $0 $3,994 $4,806 $0 CVS Health CVS Consumer Staples $2,066 $5,060 $4,007 $20,260 $30,097 $1,867 Walt Disney DIS Consumer Discretionary $2,039 $8,698 $5,061 $27,506 $46,133 $2,317 Wells Fargo WFC Financials $2,029 $8,134 $10,981 $31,775 $42,501 $7,717 Visa V Information Technology $1,754 $4,907 $3,872 $18,699 $36,327 $1,075 JPMorgan JPM Financials $1,696 $5,412 $6,274 $27,282 $40,256 $7,047 Citigroup C Financials $1,620 $6,784 $1,594 $10,739 $17,954 $590 Goldman Sachs Group GS Financials $1,556 $4,441 $5,000 $26,542 $48,438 $1,098 Top 20 $66,454 $189,539 $134,501 $616,030 $943,761 $89,477 S&P 500 $161,385 $589,411 $538,131 $2,476,557 $4,263,262 $410,752 Top 20 % of S&P % 32.16% 24.99% 24.87% 22.14% 21.78% Gross values are not adjusted for float -more- 4

5 S&P 500 Q Buyback Report SECTOR DIVIDEND BUYBACK COMBINED YIELD YIELD YIELD Consumer Staples 2.99% 2.41% 5.39% Energy 2.94% 0.92% 3.86% Financials 2.36% 3.47% 5.83% HealthCare 1.77% 3.03% 4.80% Industrials 2.38% 4.71% 7.09% Information Technology 1.84% 4.35% 6.20% Materials 2.32% 2.90% 5.22% Telecommunication Services 4.52% 0.21% 4.72% Utilities 3.43% 0.46% 3.88% S&P % 3.32% 5.62% Uses full values (unadjusted for float) Dividends based on indicated; buybacks based on the last 12-months ending Q1,'16 ABOUT S&P DOW JONES INDICES is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500 and the Dow Jones Industrial Average. More assets are invested in products based on our indices than based on any other provider in the world. With over 1,000,000 indices and more than 120 years of experience constructing innovative and transparent solutions, S&P Dow Jones Indices defines the way investors measure and trade the markets. is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit S&P DJI MEDIA CONTACTS: Soogyung Cho Jordan, Head of Communications (+1) soogyung.jordan@spglobal.com Luke Shane, US Communications (+1) luke.shane@spglobal.com INDEX INVESTMENT STRATEGY: Howard Silverblatt, Senior Index Analyst (+1) howard.silverblatt@spglobal.com 5