Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 1 of 32 PageID# 36977
`Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 1 of 32 PagelD# 36977
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`EXHIBIT 63
`EXHIBIT 63
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`Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 4 of 32 PageID# 36980
`COWEN
`Philip Morris International
`EQUITY RESEARCH
`Augu st 30. 2022
`
`IQOS IN AMERICA: WHAT IT COULD MEAN
`FOR PM?
`
`iQos was briefly available in the U.S. (mid-2019 through November 2021). but IP
`litigation with BATS forced the product off the market. At - $26 bn in global revenues
`(in 2021). the heat-not-burn category is significant at 5.5% of sales. Yet, today, it does
`not exist in the U.S., despite a 66-market presence. And with iQos generating - $9 bn
`internationally, PM retains an FDA-approved first -mover advantage in the U.S. that
`could drive meaningful upside.
`
`The product draws its lineage from a joint effort from 25+ years ago. But, PM has not
`been happy w ith MO's execution; in turn. BATS' IP dispute created a catalyst. In the
`next 12-24 months. we expect:
`
`1) PM and BATS to settle on device imports and
`
`2) PM to operationalize heatstick production in the U.S.
`
`3) MO and PM to part ways on iQos and
`
`4) PM + SWMA's $16 bn deal to close (with an amended share approval
`threshold - which should happen in the next 3-4 months)
`
`It seems clear to us that PM intends to take control of iQos in the U.S., in particular with
`the complimentary acquisition of SWMA. likely through arbitration. We see this as
`highly attainable. and potentially meaningful. Importantly, our PM estimates have
`never contemplated iQos in the U.S. (we included costs to MO). Given the
`transformative nature of SWMA. PM 's U.S. iQos approach becomes all the more
`interesting.
`
`Figure 1 Our Scenarios Suggests 10-30 bps of EBIT Margin Accretion by 2024 at MO Profit Levels
`
`PM U.S. iQos Summary Estimates
`2024E
`
`HTIJ Share
`1.8%
`Bull
`Base
`1.2%
`0 .6%
`Bea r
`'Assumes MO Smokeable profit per stick
`CC= conventional cigarette
`
`HTIJ Volumes (in bn)
`3.3
`2.2
`1.1
`
`Source: Cow en and Co mpany
`
`Herein. we offer:
`
`CC Volume Oedines
`-6.4%
`-5 .7%
`-5 .3%
`
`EBIT Margin Accretion
`(vs Cowen est in bps)•
`30
`20
`10
`
`EBIT Margin Accretion
`(vs PF est)•
`28
`19
`9
`
`1. A review of iQos· history and early track-record in the U.S. (PM 's 2015/2016 clinical
`trials. and MO's commercial launch).
`
`2. Analysis of the potential industry impact from a successful re-launch of iQos by PM
`and
`
`3. Analysis of the path to revenue and profit accretion for PM. from iQos in the U.S.
`
`COWEt-tCOM
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`3
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`Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 20 of 32 PageID#
`36996
`Philip Morris International
`Augu st 30. 2022
`
`COWEN
`EQU ITY RESEARCH
`
`Our sce nario analysis relies on what we be li eve to be a conservative ramp in HTU share
`of market (assuming initia l launch begins in 2023) to - 6% over a 5-yr time horizon. We
`also assume a 1 for 1 trade off in cig volumes for HTU volumes , which we believe
`reflects the rea lity that iQos most appea ls to current smokers. As such, there could
`some incrementa l upside to our estimates from new entrants to the category. As such.
`we stil l look for category wide contin ued declines of - 5%, incrementa l volumes from
`iQos resulting in accelerating volume declines for CCs. Please contact your Cowen
`salesperson to receive the excel backup for our scenario modeling.
`
`Figure 37 Our Base Case Assumes a Ramp to 6% SoM Over a 5 Year Time Horizon
`
`U.S. HTU Volume Scenario Modeling
`
`Assumptions
`2021 U.S. Sticks (in bn)
`Structural U.S. Cig Decline
`
`Scenario
`
`USA .......,tte + H1U Volumes I bn stlcbl
`Base Case Scenario
`Cigs (ex. HTU) + HTUs
`Cig Vo l umes (Status Quo)
`Cig Vo lumes (ex. HTU)
`HTUVolumes
`
`Shares
`Cig Vo l umes (Sta tus Quo)
`Cig Volumes (ex. HTU)
`HTUVolumes
`
`Cig Vo l umes (Status Quo)
`HTU Vol ume Target (Status Quo)
`
`211
`· 5%
`
`I
`
`Base
`
`I
`
`Bull
`Ba se
`Bear
`
`SoM atT=S
`I
`9%
`I
`6%
`I
`3%
`
`.
`
`2022
`200 .7
`200.7
`200.7
`0.0
`
`NA
`100%
`0%
`
`100%
`0%
`
`1
`2023
`190.6
`190.6
`189.7
`0.9
`
`NA
`100%
`0%
`
`100%
`0%
`
`2
`2024
`181.1
`181 .1
`178.9
`2.2
`
`NA
`99%
`1%
`
`99%
`1%
`
`2025
`172.0
`172.0
`168.4
`3.7
`
`NA
`98%
`2%
`
`98%
`2%
`
`Cifl!ll'ette + H1U Volumes ( bn
`2022
`
`< I ~
`2027
`155.3 Cigs (ex. HTU) + HTUs
`155.3
`Ci g Volumes (Status Q
`Cig Volumes (ex. HTU)
`145.4
`9.9
`HTUVol umes
`
`~
`
`1
`2023
`-5.0%
`-5.0% "
`-5.5%
`NA
`
`.
`
`2025
`-5 .0%
`-5.0% ,,.
`-5.9%
`67 .8%
`
`,
`2024
`-5.0%
`-5.0%"
`-5.7%
`139.2%
`
`4
`2026
`-5 .0%
`-5 .0% "'
`-6 .5%
`65 .4%
`
`<
`2027
`-5 .0%
`-5 .0%
`-7 .6%
`62 .4%
`
`Shares
`Cig Vol umes (Status Quo)
`Cig Vol umes (ex. HTU)
`HTUVofumes
`
`NA
`94%
`6%
`
`94%
`6%1
`
`Ci g Vol umes (Status Quo)
`HTUVotumes
`
`-48.2
`48.2
`
`-48.0
`48.0
`
`-73 .2
`73 .2
`
`-72 .0
`72 .0
`
`-93 .0
`93 .0
`
`-90.0
`90.0
`
`-158.9
`158.9
`
`-150.0
`150.0
`
`-264.9
`264.9
`
`-240.0
`240.0
`
`4
`2026
`163.4
`163.4
`157.3
`6.1
`
`NA
`96%
`4%
`
`96%
`4%1
`
`Source: Company Reports and Cowen an d Company
`
`COWEt-tCOM
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`Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 22 of 32 PageID#
`Philip Morris International
`36998
`Augu st 30. 2022
`
`COWEN
`EQUITY RESEARCH
`
`Figure 39 Acceleration in HTU Share Once the 2-3% Threshold is Met with Accelerating Cig Volume Declines (though COVID did disrupt this trend)
`
`Other Country Case Studies for Reference
`
`Germany
`
`Cigs + HTU (in bn)
`Ci gs
`HTU
`Shares
`Cigs
`HTU
`
`Italy
`
`Cigs + HTU (in bn )
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`Switzerland
`
`Cigs + HTU (in bn)
`Ci gs
`HTU
`Shares
`Cigs
`HTU
`
`Greece
`
`2017
`76.8
`76.7
`0.1
`
`100%
`0%
`
`2017
`69.8
`69.3
`0.5
`
`99%
`1%
`
`2017
`9 .4
`9.3
`0.1
`
`99%
`1%
`
`2018
`75.2
`74.8
`0.4
`
`99%
`1%
`
`2018
`69.0
`67.5
`1.5
`
`98%
`2%
`
`2018
`9 .3
`9.1
`0.2
`
`98%
`2%
`
`2019
`73 .3
`72.4
`0.9
`
`99%
`1%
`
`2019
`67 .9
`64.6
`3.3
`
`95%
`4.9%
`
`2019
`9 .1
`8.8
`0.3
`
`97%
`3%
`
`2020
`74.7
`73.0
`1.7
`
`98%
`2%
`
`2020
`67.4
`61.7
`5.7
`
`92%
`8%
`
`2020
`9 .6
`9.2
`0.4
`
`96%
`4%
`
`2016
`78 .1
`78.1
`
`2016
`72.2
`72.1
`0.1
`
`100%
`0%
`
`2016
`9.4
`9.4
`
`2016
`15 .3
`15.3
`
`GermanyYoY
`
`2021
`74.0
`71 .6
`2.4
`
`97%
`3%
`
`Cigs+ HTU
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`ltalyVoV
`
`2021
`70.4 Cigs+HTU
`61 .1
`Cigs
`9.3
`HTU
`Shares
`Cigs
`HTU
`
`87%
`13%
`
`Switzerland YoY
`
`Cigs+ HTU
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`Greece YoY
`
`2021
`9 .5
`8.9
`0.6
`
`94%
`6%
`
`2021
`13 .1
`11 .1
`2.0
`
`2016
`
`2017
`-1.7%
`-1.8%
`
`2018
`-2.1%
`-2.5%
`300.0%
`
`2019
`-2.5%
`-3.2%
`125 .0%
`
`2020
`1.9%
`0.8%
`88.9%
`
`-40.2
`40.5
`
`-69.6
`70.8
`
`-104.8
`108.6
`
`2016
`
`2017
`-3.3%
`-3.9%
`400.0%
`
`2018
`-1.1%
`-2.6%
`200.0%
`
`2019
`-1.6%
`-4.3%
`120.0%
`
`2020
`-0 .7%
`-4.5%
`72 .7%
`
`2021
`-0 .9%
`-1.9%
`41.2%
`
`-96.7
`102 .3
`
`2021
`4.5%
`-1.0%
`63.2%
`
`-57 .8
`57 .8
`
`-145.8
`145 .8
`
`-268.6
`268.6
`
`-359 .7
`359 .7
`
`-475.3
`475.3
`
`2016
`
`2017
`0 .0%
`-1.1%
`
`2018
`-1.1%
`-2.2%
`100.0%
`
`-108.7
`108.7
`
`2019
`-2.2%
`-3.3%
`50.0%
`
`-114.6
`114.6
`
`2016
`
`2017
`-8 .5%
`-9.8%
`
`2018
`-4.3%
`-7 .2%
`200.0%
`
`2019
`-0 .7%
`-5.5%
`100.0%
`
`2020
`5.5%
`4.5%
`33 .3%
`
`-87.0
`87.0
`
`2020
`-6.8%
`-9.9%
`25.0%
`
`2021
`-1.0%
`-3.3%
`50.0%
`
`-214.9
`214.9
`
`Cigs + HTU (in bn)
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`UK
`
`Cigs + HTU (in bn)
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`Russia
`
`Cigs + HTU (in bn)
`Ci gs
`HTU
`Shares
`Cigs
`HTU
`
`Japan
`
`2017
`14.0
`13.8
`0.2
`
`99%
`1%
`
`2017
`27 .9
`27.9
`
`2018
`13.4
`12.8
`0.6
`
`96%
`4%
`
`2018
`26.0
`26.0
`
`2017
`260.0
`259.7
`0.3
`
`100%
`0%
`
`2018
`238.9
`236.3
`2.6
`
`99%
`1%
`
`2016
`29.6
`29.6
`
`2016
`280.0
`280.0
`
`2016
`179.0
`173.8
`5.2
`
`2017
`171.4
`151 .4
`20.0
`
`Cigs + HTU (in bn)
`Cigs
`HTU
`Shares
`88%
`79%
`97%
`Cigs
`12%
`21%
`3%
`HTU
`Source: Company reports and Cowen and Company
`
`2018
`167.3
`132.7
`34.6
`
`2019
`13.3
`12.1
`1.2
`
`91%
`9%
`
`2019
`23 .6
`23.5
`0.1
`
`100%
`0%
`
`2019
`226.5
`217.7
`8.8
`
`96%
`4%
`
`2019
`157.8
`121 .1
`36.7
`
`77%
`23%
`
`2020
`12 .4
`10.9
`1.5
`
`88%
`12%
`
`2020
`24.4
`24.1
`0.3
`
`99%
`1%
`
`2020
`219.1
`203.7
`15.4
`
`93%
`7%
`
`2020
`142.9
`102.8
`40.1
`
`72%
`28%
`
`Cigs + HTU
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`UKVoV
`
`Cigs+ HTU
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`Russia YoY
`
`Cigs+ HTU
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`Japan YoY
`
`Cigs+ HTU
`Cigs
`HTU
`Shares
`Cigs
`HTU
`
`85%
`15%
`
`2021
`24.2
`23.7
`0.5
`
`98%
`2%
`
`2021
`216.8
`196.9
`19.9
`
`91%
`9%
`
`2021
`139.5
`94.4
`45.1
`
`68%
`32%
`
`2021
`5.6%
`1.8%
`33.3%
`
`-304.9
`304.9
`
`-454.5
`454.5
`
`-307 .4
`307 .4
`
`-317.0
`317.0
`
`2016
`
`2017
`-5.7%
`-5.7%
`
`2018
`-6 .8%
`-6 .8%
`
`2019
`-9 .2%
`-9 .6%
`
`2016
`
`2017
`-7.1%
`-7.3%
`
`2018
`-8.1%
`-9 .0%
`766.7%
`
`2019
`-5.2%
`-7.9%
`238.5%
`
`-97 .3
`97 .3
`
`-279.7
`279.7
`
`2020
`3.4%
`2.6%
`200.0%
`
`-80.6
`80.6
`
`2020
`-3.3%
`-6 .4%
`75.0%
`
`-314.4
`314.4
`
`2016
`
`2017
`-4.2%
`-12.9%
`284.6%
`
`2018
`-2.4%
`-12 .4%
`73 .0%
`
`2019
`-5.7%
`-8.7%
`6.1%
`
`2020
`-9.4%
`-15.1%
`9 .3%
`
`2021
`-0 .8%
`-1.7%
`66.7%
`
`-83.7
`83.7
`
`2021
`-1.0%
`-3.3%
`29.2%
`
`-215.0
`215.0
`
`2021
`-2.4%
`-8.2%
`12.5%
`
`-876.4
`876.4
`
`-901.3
`901.3
`
`-257.6
`257.6
`
`-480.4
`480.4
`
`-426.8
`426.8
`
`COWEt-tCOM
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`Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 25 of 32 PageID#
`Philip Morris International
`37001
`Augu st 30. 2022
`
`COWEN
`EQUITY RESEARCH
`
`VALUATION METHODOLOGY AND RISKS
`
`Valuation Methodology
`
`Tobacco:
`
`Our valuation methodology is primarily based on Price-to -Earnings (PIE). followed by
`Relative Price-to-Earnings (vs. the respective relative index) as well as Enterprise Value to
`EBITDA (EV/ EBITDA). In cases where GAAP net income includes large, non -cash items (e.g.,
`re structuring charges or the resolution of disputed MSA). we may use non -GAAP EPS.
`
`We make investment recommendations on certain early stage . pre -revenue companies
`based upon an assessment of their business model, technology. probability of market
`success, and the potential market opportunity, balanced by an assessment of applicable
`risks. Such companies may not be assigned a price target.
`
`Investment Risks
`
`Tobacco: Global tobacco demand is subject to a number of potential headwinds. Most
`notably, increased awareness of the risks associated with traditional tobacco use. and
`resultant regulatory actions (e.g., indoor smoking bans. enlarged textual or graphic warnings.
`and/ or plain packaging) can negatively impact smoking incidence and/or per capita
`consumption . and thus industry volumes. What is more. the industry is also subject to
`risk from disruptive tax increases. which result in higher prices. and can also depress
`consumption . Further. while diminished, litigation risk also exists.
`
`Risks To The Price Target
`
`We rate PM Outperform. The company is the market share leader in international tobacco.
`with a strong stable of leading brands and a geographically diverse business model.
`
`Negative Risks: include continued weakness in global cigarette industry volumes .
`deceleration in RRP growth, adverse currency movements. disruptive excise tax increases.
`heightened regulation. and litigation.
`
`24
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`Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 26 of 32 PageID#
`37002
`Philip Morris International
`August 30. 2022
`
`COWEN
`EQU ITY RESEARCH
`
`ADDENDUM
`
`Stocks Mentioned In Important Disclosures
`
`Tic ker
`STZ
`GTBI F
`PM
`
`Company Name
`Constellation Brands
`Green Thumb Industries
`Philip Morris International
`
`■
`
`Analyst Certification
`Each author of this research report hereby certifies that (i) the views expressed in the research report accurately reflect his or her personal views about any and all of the subject
`securities or issuers. and (ii) no part of his or her compensation was, is. or will be related , directly or indirectly, to the specific recommendations or views expressed in this report.
`
`Important Disclosures
`Cowen and Company, LLC and or its affiliates make a market in the stock of Philip Morris International and Constellation Brands securities.
`Cowen and Company, LLC and/ or its affiliates beneficially own 1% or more of the common equity securities of Green Thumb Industries.
`Cowen and Company, LLC compensates research analysts for activities and services intended to benefit the firm's investor client s. Individual compensation determinations for research
`analysts, including the author(s) of this report, are based on a variety of factors, including the overall profitability of the firm and the total revenue derived from all sources, including
`revenues from investment banking, sa les and trading or principal trading revenues. Cowen and Compa ny, LLC does not compensate research analysts based on specific investme nt
`banking transactions or specific sa les and trading or principal trading revenues.
`The Nielsen material contained in this report represents Nielsen's estimates and does not represent facts.
`
`Disclaimer
`Cowen leverages technology from Truvalue Labs to generate our ESG scores. Truvalue Labs uses artificial intelligence to capture the sta keholder view of how com panies are
`performing on ESG metrics, using the Sustainability Accounting Standards Board (SASS) materiality framework (www.sasb.org). (See below.) These data are leveraged to ca lculate a
`sco re for each company, wh ich allows Cowen to have a common framework and uniform way to approach ESG discussions with our clients. Cowen ESG scores appear on Company and
`Company Quick Take notes and are updated daily.
`The process begins with ca pturing unstructured data from more than 100,000 sources. in 14 languages. These data are culled from a w ide range of sources w ith varied perspectives.
`including industry publications. news outlets. NGOs, trade unions. government sources. legal and regulatory filings, and academic publications.
`
`Natural language processing is used to interpret semantic content from the original sources and generate analytics by applying criteria consistent with established sustainability and
`ESG frameworks. Performance is scored on a Oto 100 scale. A score of SO represents a neutral impact . Scores above SO indicate more positive performance. and scores below reflect
`more negative performance. A score of NA means not enough data is available on the company to generate a score.
`
`The algorithms are sensitive to both intensity and frequency. Truva lue Labs data contribute an indication of how stakeholder issues and potential controversies may affect a company,
`based on real -time information. Truva lue assesses positive and negative ESG events contained in unstructured data and assigns a score per topic for each passage based on the
`magnitude of sentiment. The score reflects not on ly whether performance is positive or negative, but also how positively or negatively the company is performing on the topic
`reflected in the data point. For example. the algorithms would assign a relatively more negative score to a catastrophic oil spi ll affecting multiple workers and communities than to a
`workplace incident that caused a minor injury to one worker. In both cases, the sentiment-based score wou ld be negative, but performance wou ld be eva luated as significa ntly more
`negative in the first case than in the second case.
`
`Cowen introduced its own ESG scoring methodology because we believe that existing ratings systems are mostly backward -looking. Data are often supplied by compa nies and thus are
`subject to "greenwa shing" (i.e., using data se lectively to spin a story that is better than it actua lly is). In addition, most ratings systems generally don't align w ith SASS, which we think
`is emerging as a standard on the buy side.
`Dynamic Materiality'" is Truvalue Labs' approach acknowledging that companies , industries, and sectors have unique materiality signatures that evo lve over time, determined by
`factors such as shifts in business models, changing consumer preferences. emerging technologies. and new regulations. Dynamic Materiality'" is driven by how stakehold ers respond
`to events, behaviors, and externa lities experi enced in relation to a company or an industry. Th is stands in contrast to the view that materiality is relatively static and ca n be defined by
`a company. For example, if a company appeared in 100 different sources over a trailing 12-month period, and 30 of the sources were related to the SASS Employee Health & Safety
`catego ry, the Employee Hea lth & Safety Dynamic Materi ality'" wo uld be 30%. Furthermore, 30% of the company's overall score wo uld be driven by the Employee Health and Safety
`Insight Score.
`ESG MATERIALITY
`Establishing mat eriality is critica l to evaluating a company's ESG performan ce. Factors most material in one secto r (or to a particular company) may not be as important to another. In
`addition, the factors that are material - and the degree to w hich f actors are material - can change over time .
`
`Applying data to frameworks established by SASS (the Sustainability Accounting Standards Board) and by Truva lue Labs. we present in the chart above the three most material
`ESG factors that investors should focus on for the company that is the subject of this report; the Dyna mic Materiality'" of each factor (i.e .. what percentage of overall materiality the
`category represents for the subject company); and a Score for the subject company in each of these three categories (on a Oto 100 basis. with SO being average).
`
`We also calculate an overall ESG Score for the subject company, w hich is presented above (in green) and on the cover of th is report. A full explanation of how this ESG Score is derived
`is presented below.
`
`Cowen leverages technology from Truvalue Labs to generate our ESG scores. Truvalue Labs uses artificial intelligence to capture the stakeholder view of how companies are
`performing on ESG metrics. using the Sustainability Accounting Standards Board (SASS) materiality framework (www.sasb.org). These data are leveraged to ca lculate a score for each
`company, which allows Cowen to have a common framework and uniform way to approach ESG discussions w ith our clients. Cowen ESG scores appear on Company and Company
`Quick Take notes and are updated daily.
`
`The process begins with capturing unstructured data from more than 100,000 sources. in 14 languages. These data are culled from a w ide range of sources w ith varied perspectives.
`including industry publ ications, news outlets. NGOs. trade unions, government so urces. lega l and regulatory filings, and academic publications.
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`Natural language processing is used to interpret semantic content from the original sources and generate analytics by applying criteria consistent with established sustainabi lity and
`ESG frameworks. Performance is scored on a Oto 100 scale. A score of SO represents a neutral impact. Scores above SO indicate more positive performance, and scores below reflect
`more negative performance. A score of NA means not enough data is available on the company to generate a score.
`
`Our research reports are simu ltaneously available to all clients are on our client website. Research reports are for our clients on ly. Not all research reports are disseminated, e-mailed
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`library.jsp.
`
`The information, opinions, estimates and forecasts are as of the date of this report and subject to change without prior notification. We seek to update our research as appropriate, but
`various regulations may prevent us from doing so. Resea rch reports are published at irregular intervals as appropriate in the analyst's judgement.
`
`Further information on subject securities may be obtained from our offices. This research report is published solely for information purposes, and is not to be construed as an offer
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`the information herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a comp lete statement or summary of the avai labl e data.
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`From time to time "Cowen Cross-Asset Research " ana lysts provide investment recommendations on secu riti es that are the subject of this report. These recommendations are intended
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`
`Additionally, the comp lete preceding 12-month recommendations history related to recommendation in this research report is avai labl e at https:/ /cowe n.bluematrix.com/se ll side/
`Disclosures.action
`
`Cowen and Company, LLC and/ or its affiliates beneficially own .5% or more of the common equity securities of Green Thum b Industries.
`The recommendation contained in this report was produced at August 29, 2022 , 19:20 ET. and disseminated at August 30, 2022, 06:00 ET.
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`COWEN AND COMPANY EQUITY RESEARCH RATING DEFINITIONS
`
`Outperform (1): The stock is expected to achieve a total positive return of at least 15% over the next 12 months
`
`Market Perform (2): The stock is expected to have a total return that falls between the parameters of an Outperform and Underperfo rm over the next 12 months
`
`Underperform (3): Stock is expected to achieve a total negative return of at least 10% over the next 12 months
`
`Assumption: The expected total return calculation includes anticipated dividend yield
`
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`Case 1:20-cv-00393-LMB-WEF Document 1425-7 Filed 09/09/22 Page 31 of 32 PageID#
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`EQUITY RESEARCH
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`Ph ili p Mo rr is International (PM) ESG Score Hi story as of 08/30/2022
`
`100
`
`90
`
`80
`
`70
`
`60
`
`50
`
`40
`
`30
`
`20
`
`10
`
`0
`
`Jan'20
`
`Jul '20
`
`Jan '21
`
`Jul '21
`
`Jan '22
`
`Jul '22
`
`( -
`
`ESG Sc ore)
`
`ES6 performance rsscoreo onaO to 100 Sidle A score of SO represents a neutral impart Scores above 50 irnl1Cate more positive performance,arnl scores below reflect more negativ,
`performance A blank chart means the company ha, an ES 6 performance score of N/ A A score of N/ A means not
`enough data isava1lableonthecompany togeneratea score
`Source Trwalue Labs
`
`30
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