1. From the horizontal and vertical analysis is the company in good or bad shape? What accounts caused this opinion? 2. Determine the ratios and state what account caused the change? 3. Would you or would you not invest in this company? Would you become an employee of this company?

CONSOLIDATED BALANCE SHEETS MAY 31, In millions) 202 :020 Increase or (Decrease ASSETS Amount Percent Current assets: Cash and equivalents $ 9,889.00 3,348.00 $1,541.00 118.5 Short-term investments 3,587 139 3, 148 12.2 Accounts receivable, net 4,463 2,749 1,714 61.6 Inventories 5,854 7,367 513 ) 93.0 Prepaid expenses and other current assets 498 1,653 155 0.6 Total current assets 26,29 20,556 5.735 78.2 Property, plant and equipment, net 4,904 4.866 38 99.2 Operating lease right-of-use assets, net 3,113 3,097 16 99.5 Identifiable intangible assets, net 269 274 (5) 98.2 Goodwill 242 223 19 92.1 DIGITCU Income taxes and Other assets 2.921 2.326 595 79.6 TOTAL ASSETS $ 37,740.00 $ 31,342.00 $6,398.00 83.0 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ $ 3 $ (3 0.0 Notes payable 2 248 246) 0.8 Accounts payable 2,836 2,248 588 79.3 Current portion of operating lease liabilities 467 445.00 22 95.3 Accrued liabilities 6,063 5,184 879 35.5 Income taxes payable 306 156 150 51.0 Total current liabilities 9,674 8,284 1,390 85.6 Long-term debt 9,413 9,406 7 99.9 Operating lease liabilities 2,931 2,913 18 99.4 DeTenTCU mCome takes and other liabilities 2,955 2,684 271 90.8 Commitments and contingencies (Note 18 Redeemable preferred stock Shareholders' equity Common stock at stated value: Class A convertible -305 and 315 shares Outstanding Class B - 1,273 and 1,243 shares outstanding 3 3 0 100.0 Capital in excess of stated value 9,965 Accumulated Otel Comprehensive 8,299 1,666 79.3 income (loss) -38 -56 18 67.9 Retained earnings (deficit) 3,179 191 3.370 (6.0) Total shareholders' equity $ 12,767.00 $ 8,055.00 4712.00 63.1 VIAL LIADILITILE AND SHAREHOLDERS' EQUITY $ 37,740 $ 31,342 $6,398.00 83.0A B C D E G H K M CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED MAY 31. Dollars in millions) 2021 2020 Increase or (decrease) Cash provided (used) by operations: Amount Percent Net income $ 5,727.00 $ 2,539.00 $ 3, 188 44.3 Adjustments to reconcile net income to net cash provided (used) by operations: Depreciation 744 721 23 96.9 Deferred income taxes -385 380 (5 ) 98.7 Stock-based compensation 611 429 182 70.2 Amortization, impairment and other 53 398 (345) 13.3 Net foreign currency adjustments -138 23 (161) (16.7) components and other assets and 12 iabilities: (Increase) decrease in accounts receivable -1,606 1,239 (2,845) (77.1) (Increase) decrease in inventories 507 1,854 2,361 (27.3) (Increase) decrease in prepaid expenses, operating lease right-of-use assets and 15 other current and non-current assets -182 -654 472 27.8 Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non- 16 current liabilities 1,326 24 1,302 1.8 17 Cash provided (used) by operations 6,657 2,485 4,172 37.3 Cash provided (used) by investing 18 activities: 19 Purchases of short-term investments 9,961 2,426 (7,535) 24.4 20 Maturities of short-term investments 4,236 74 4,162 1.7 21 Sales of short-term investments 2,449 2,379 70 97.1 Additions to property, plant and 22 equipment 695 1,086 391 64.0 23 Other investing activities 171 31 140 18.1 24 Cash provided (used) by investing activities -3,800 -1,028 (2,772) 27.1 Cash provided (used) by financing 25 activities: Proceeds from borrowings, net of debt 26 issuance costs 6,134 (6,134) 0.0 27 Increase (decrease) in notes payable, net -52 49 (101) (94.2) 28 Repayment of borrowings -197 - 6 (191) 3.0 Proceeds from exercise of stock options 29 and other stock issuances 1,172 885 287 75.5 30 Repurchase of common stock -608 -3,067 2,459 19.8 Dividends - common and preferred -1,638 1,452 (186) 88.6 32 Other financing activities -136 -52 (84) 38.2 Cash provided (used) by financing 33 activities -1,459 2,491 (3,950) (58.6) Effect of exchange rate changes on cash 34 and equivalents 143 -66 209 (46.2) Net increase (decrease) in cash and 35 equivalents 1,541 3,882 (2,341) 39.7 36 Cash and equivalents, beginning of year 8,348 4,466 3,882 53.5 CASH AND EQUIVALENTS, END OF 37 YEAR 9,889.00 $ 8,348.00 $ 1,541 84.4 Supplemental disclosure of cash flow 38 information: 39 Cash paid during the year for 40 Interest, net of capitalized interest 293 140 153 47.8 41 Income taxes 1,177 1,028 757 70.2 Non-cash additions to property, plant and 42 equipment 179 121 160 67.6 43 Dividends declared and not paid 438 385 347 87.9CONSOLIDATED INCOME STATEMENT YEAR ENDED MAY 31 Increase or (Decrease) In millions, except per share data) 2021 2020 Amount Percent Revenues $ 44,538.00 $ 37,403.00 $7, 135.00 33.98 Cost of sales 24,576 21, 162 3,414 16.13 Gross profit 19,962 16,24 3.721 22.91 Demand creation expense 3, 114 3,592 (478) (13.31) Operating overhead expense 9.911 9,534 377 96.20 Total selling and administrative expense 13,025 13,126 (101) (0.77) nterest expense (income), net 262 173 33.97 Other (income) expense, net 14 139 (125) 89.93) come before income taxes 6,661 2,887 3,77 13.34 come tax expense 934 348 586 7.26 ET INCOME $ 5,727.00 $ 2,539.00 $3, 188.00 14.33 Earnings per common share: Basic 3.64 $ 1.63 $2.01 14.8 Diluted 3.56 $ 1.60 $1.96 44.9 Veighted average common shares utstanding Basic 1573.0 1558.8 $14.20 99.1 Diluted 1609.4 1591.6 $17.80 98.9 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED MAY 31, Increase or (Decrease) Dollars in millions) 2021 2020 Amount Percent et income $ 5,727.00 $ 2,539.00 $ 3, 188 44.33 Other comprehensive income (loss), et of tax: Change in net foreign currency slation adjustment 496 148 644 29.84) Change in net gains (losses) on cash flow hedges -825 -130 (695) 15.76 Change in net gains (losses) on other 5 -9 14 (55.56) Total other comprehensive income loss), net of tax -324 -287 (37) 88.58 TAL COMPREHENSIVE NCOME $ 5,403.00 $ 2,252.00 $ 3,151 41.68CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY COMMON STOCK ACCUMULATED CLASS A CLASS B CAPITAL IN OTHER EXCESS COMPREHENSIVE (In millions, except per share data) SHARES AMOUNT SHARES AMOUNT OF STATED VALUE INCOME (LOSS) RETAINED EARNINGS (DEFICIT) TOTAL Balance at May 31, 2020 315 1,243 $ 3 $ 8,299.00 $ (56.00) $ (191.00) $ 8,055.00 Stock options exercised 21 954 954 Conversion to Class B Common Stock (10.00) 10 Repurchase of Class B Common Stock (5.00) (28.00) (622) 650) Dividends on common stock ($1.070 per share) and preferred stock ($0.10 per share (1,692) (1,692) Issuance of shares to employees, net of shares withheld for employee taxes 4 129 (43) 86 Stock-based compensation 611 611 Net income 5,727 5,727 Other comprehensive income (loss) 324 324) Balance at May 31, 2021 305 1,273 $ 3 $ 9,965.00 $ (380.00) $ 3,179.00 $ 12,767.00 Amount 4,712.00 Percent 63Vertical analysis of INCOME STATEMENT YEAR ENDED MAY 31, E (In millions, except per share data) 2021 2020 Revenues 100% 100% Cost of sales 55% 57% Gross profi 45% 13% Demand creation expense 7% 10% Operating overhead expense 22% 25% Total selling and administrative expense 29% 35% Interest expense (income), net 1% Other (income) expense, net 0% Income before income taxes 15% 8% Income tax expense 2% 1% NET INCOME 13% /% CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED MAY 31, "Dollars in millions) 2021 2020 Net income 100% Other comprehensive income (loss), net of tax: 0% 0% Change in net foreign currency translation adjustment 9% -6% Change in net gains (losses) on cash flow hedges 14% 5% Change in net gains (losses) on other 0% 0% Total other comprehensive income (loss), net of tax 6% -11% TOTAL COMPREHENSIVE INCOME 94% 89%VERTICAL ANALYSIS MAY 31, (In millions) 2021 2020 ASSETS Current assets: Cash and equivalents 26% 27% Short-term investments 10% 1% Accounts receivable, net 12% 9% Inventories 18% 24% Prepaid expenses and other current assets 4% 5% Total current assets 70% 66% Property, plant and equipment, net 13% 16% Operating lease right-of-use assets, net 8% 10% Identifiable intangible assets, net 1% 1% Goodwill 1% 1% assets 8% 7% TOTAL ASSETS 100% 100% LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt 0% 0% Notes payable 0% 1% Accounts payable 8% 7% Current portion of operating lease liabilities 1% 1% Accrued liabilities 16% 17% Income taxes payable 1% 0% Total current liabilities 26% 26% Long-term debt 25% 30% Operating lease liabilities 8% 9% liabilities 8% 9% Commitments and contingencies (Note 18) 0% 0% Redeemable preferred stock Shareholders' equity: 0% 0% Common stock at stated value: 0% 0% Class A convertible - 305 and 315 shares outstanding Class B - 1,273 and 1,243 shares outstanding 0% 0% Capital in excess of stated value 26% 26% income (loss 0% 0% Retained earnings (deficit) 8% -1% Total shareholders' equity 34% 26% PUTAL LINDILITILE AND SHAREHOLDERS' EQUITY 100% 100%