Alexia Howard +1 917 344 8453 alexia.howard@bernsteinsg.com Richard J. Clarke, FCA +44 20 7676 6850 richard.clarke@bernsteinsg.com Callum Elliott, CFA, ACA +44 20 7676 7183 callum.elliott@bernsteinsg.com Danilo Gargiulo +1 917 344 8475 danilo.gargiulo@bernsteinsg.com Zhihan Ma, CFA +1 917 344 8303 zhihan.ma@bernsteinsg.com 3 December 2025 U.S. Consumer Strategy and Quantitative Research U.S. Consumer Strategy - have we reached capitulation yet and should we prepare for a positive sector rotation? Nadine Sar ...

Highly concerning nominee backgrounds underscore questionable judgement by Edward Smolyansky and George Sent, Managing Director of Cascadia Capital Edward and Ludmila Smolyansky’s personal liquidity needs may be behind their demands for a quick sale of Lifeway at any price MORTON GROVE, Ill., Dec. 02, 2025 (GLOBE NEWSWIRE) -- Lifeway Foods, Inc. (NASDAQ: LWAY) (“Lifeway” or the “Company”), a leading U.S. supplier of kefir and fermented probiotic products, today issued the following statement in response to ...

Core Insights - Major producers in the food, consumer goods, and automotive sectors reported quarterly results that exceeded expectations, alleviating investor worries regarding the impact of U.S. President Donald Trump's import tariffs [1] Group 1: Industry Performance - The food, consumer goods, and automotive industries demonstrated resilience by delivering stronger-than-anticipated quarterly results [1] - Investor concerns about the negative effects of import tariffs were eased by these positive earnings reports [1]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on global equity strategy, analyzing various regions and sectors based on quantitative frameworks, earnings momentum, and macroeconomic factors [2][5][45]. Regional Insights - **Japan**: Ranks highest on the aggregate regional scorecard but is underweight due to tightening monetary conditions and high operational leverage [6][10]. - **GEM (Global Emerging Markets)**: Maintains second place, benefiting from strong economic momentum and improved monetary conditions; upgraded to benchmark in April [6][10]. - **Europe**: Considered the cheapest region, ranking high on the valuation scorecard [6][10]. - **US**: Ranks fourth, showing strong earnings momentum but with extreme valuations [6][10]. - **UK**: Dropped to the bottom of the ranking due to weak monetary conditions and economic momentum [6][10]. Sector Analysis - **Financials**: Preferred over non-financial cyclicals, with a continued overweight on banks [7]. - **Healthcare Equipment**: Ranks second overall, indicating strong fundamentals [7]. - **Cyclicals**: Underweight in global cyclicals excluding tech and financials, with capital goods being the most expensive sector in Europe [7]. - **Growth Defensives**: Overweight in sectors like healthcare equipment, software, and select utilities [7]. - **Technology**: Selective preference for software over semiconductors [7]. Crowding and Market Direction - **Crowding**: The US is the most crowded region, while Europe is the least crowded. Sectors like tobacco, real estate, and software are the most crowded, whereas food producers and household products are the least [8][16]. - **Market Direction**: Near-term consolidation is expected, with a year-end target of 960 for MSCI AC World [8]. Earnings Momentum and Valuation - **Earnings Momentum**: Transportation ranks highest, while semiconductors have seen a significant drop [17]. - **Valuation**: Beverages and food producers are the cheapest sectors, while semiconductors and food retail are the most expensive [13][49]. Macro and Earnings Trends - **Macro Scenario**: Flat markets anticipated in the near term, with various macroeconomic indicators being monitored [42]. - **Earnings Trends**: Software earnings are at trend, while semiconductors are 46% above trend [14]. Machine Learning Insights - **ML Model**: Indicates that healthcare equipment and household products have the most upside potential, while semiconductors and capital goods show downside risks [15]. Analyst Recommendations - **Consensus Shorts**: Analysts recommend shorts in insurance and chemicals, while capital goods and utilities are seen as consensus longs [17]. Conclusion - The report provides a comprehensive analysis of regional and sector performance, highlighting investment opportunities and risks based on quantitative metrics and macroeconomic conditions. The focus remains on identifying sectors with strong fundamentals and favorable valuations while being cautious of crowded trades and extreme valuations in certain regions.

Core Viewpoint - Lifeway Foods, Inc. has received a recommendation from Institutional Shareholder Services Inc. (ISS) advising shareholders to "DO NOT VOTE" in the ongoing dissident-led consent solicitation, indicating that the dissident group has not made a compelling case for change [1][2]. Company Overview - Lifeway Foods, Inc. is recognized as a leading supplier of kefir and fermented probiotic products in the U.S. and has been listed among Forbes' Best Small Companies [3]. - The company offers a variety of products including drinkable kefir, cheeses, and a ProBugs line for children, with distribution across the U.S., Mexico, Ireland, South Africa, the UAE, and France [3]. Financial Performance - Lifeway's financial performance has been directionally positive, with its share price rallying over the past year due to multiple positive earnings announcements [5]. - The total shareholder return has significantly outperformed peers in the Russell 3000 Food Producers Index [5]. Dissident Group Analysis - The critiques from the dissident group are viewed as lacking adequate context and do not clearly establish how their proposed changes would impact shareholder returns [5]. - The dissident nominees have a history of governance concerns during their previous tenures at the company [5]. Management's Position - The management team, led by CEO Julie Smolyansky, remains focused on maximizing shareholder value and encourages shareholders to follow ISS's guidance by taking no action on the consent solicitation [5].

Group 1 - Fresh Del Monte Produce (FDP) was reaffirmed as a 'buy' candidate despite previous weaknesses, indicating potential for recovery and growth [1] - The investment service focuses on cash flow and companies that generate it, highlighting the importance of value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers have access to a 50+ stock model account, which includes in-depth cash flow analyses of exploration and production (E&P) firms, enhancing investment decision-making [2] - The service offers live chat discussions about the sector, fostering community engagement and real-time insights [2] - A two-week free trial is available for new subscribers, providing an opportunity to explore the offerings without initial investment [3]