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Table 1: Shares rated buy by our analysts in cyclical, bank and insurance sectors* : re ‘ MKT CAP Company Name Ticker Industry (JPX definition) Price (Billion Yen) Analyst Name Mitsubishi UFJ FG 8306 JP Banks 683 9.674 Futoshi Sasaki Japan Post Bank 7182 JP Banks 331 5,990 Futoshi Sasaki SMFG 8316 JP Banks 4190 5,925 Futoshi Sasaki Resona HD 8308 JP Banks 538 1,251 Futoshi Sasaki Mitsubishi Elec 6503 JP Electric Appliances 592 3,418 Mikio Hirakawa Nidec 6594 JP Electric Appliances 10460 3,035 Masashi Kubota Hitachi 6501 JP Electric Appliances 588 2,658 Mikio Hirakawa Panasonic 6752 JP Electric Appliances 033 2,933 Mikio Hirakawa Dai-ichi Life 8750 JP Insurance 850 2,202 Futoshi Sasaki MS&AD Holdings 8725 JP Insurance 3405 2,085 Futoshi Sasaki Sompo Holdings 8630 JP Insurance 3684 1,506 Futoshi Sasaki Shin-Etsu Chem 4063 JP (Chemicals 8328 3,599 Takashi Enomoto FUJIFILM 4901 JP Chemicals 4095 1,906 Hiroyasu Eguchi Sony 6758 JP Electric Appliances 3226 4075 Mikio Hirakawa NTT DATA 9613 JP Information & Communication 5530 1,551 Hiroyasu Eguchi NSSMC 5401 JP lron & Steel 2384 2,266 Takashi Enomoto JR East 9020 JP Land Transportation 9542 3,/43 Yasuhito Tsuchiya JR Central 9022 JP Land Transportation 17825 3,672 Yasuhito Tsuchiya Nintendo 1974 JP (Other Products 26050 3,129 Hiroyasu Eguchi Recruit HD 6098 JP Services 4340 2,453 Yoshiyuki Kinoshita Oriental Land 4661 JP Services 5957 1,991 Rie Sakai Fuji Heavy Ind 7270 JP [Transportation Equipment 4320 3,371 Kei Nihonyanagi Suzuki Motor 7269 JP [Transportation Equipment 3711 1,637 Kei Nihonyanagi Source: BofA Merrill Lynch Global Research *Cyclical sectors = Industrials, consumer discretionary, IT, materials in GICS definition *Market cap above 1.5trn JPY except bank, insurance shares *Exclude Fast Retailing Bankof America 4 Japan Investment Strategy | 18 November 2016 Merrill Lynch HOUSE_OVERSIGHT_014407