3January 2018 HY Corporate Credit HY Mufti SectorMedia. Cable & Satellite Radio Broadcasting rRadio Broadcasting: Core Revenue Performance & Guidance: kaila awfrasaga 14:00.4s.111/e4IMJ An Val MI BOIS len I. a a Pt a a a a fal a a., a a a n lia• Oa n Mal Pa a a a A Ina alms aig esenamia4461. faia ' liSdnaanalins Pan* ma -- 1% vakIdna MIN spies. sbaaallull anairalsoalloa Inallaveyasaaanaaaalealnad GI an@ Met taring to AM/FM talc aid Amoy IV an swan from Hawn AV Townsmen Ave ,go pairs !Amon 3024 IOW item*' 'toes ASE which nett kad bean; eon. ex I mob. amen r5 Snot Datltett a S esonsys. Conwny .Moa S ccrAvoice eat MS Nam tier waren**, as Annfrol. - tn.:a! 'n'a, t. nn•r!n•-“tat,“."!! — nanan.anna Inaannsaana liaitteanaraaorot taaa swan Notoaalaaliikl alaaaa•wara WpmM aatananallalal aboarmaagaalaleaaa traa Inanuoara The radio industry seems to have settled into a new normal - that of overall LSD declines. FY14 was down -3%, FY15 down -2.5% Y-o-Y, FY16 down -3%, and FY17 tracking to down -2.40% Station digital ad sales are growing -100/0, but still represent just -1 CP/0 of revenues. Excess supply and a lack of pricing discipline have hurt the industry. In addition, terrestrial radio continues to battle competition for both ad dollars and listeners on multiple fronts: satellite radio, streaming radio (i.e.. Pandora), and music subscription services (e.g. Spotify, Apple Music), to name a few. Connected cars may amplify these competitive pressures. All that said, unlike other under-pressure traditional media outlets (i.e. newspapers), the radio industry recovered from the depths of the recession to post mid-single growth in 2010, followed up by more stable - albeit down slightly - performance since. [Radio Industry: Ad Revenue 'Fiend % Change) 4% srsetAV1141,111,1,14"/"MsoW Sam MAGV4 .•••• 1••• • ••••••• The big players in the industry, iHeart and Cumulus, remain saddled with excessive debt loads that have hampered re-investment in the business. That said, recent developments (discussions with creditors) bring hope that debt loads may be reduced in 2018 (via restructuring), freeing management teams to operate and invest as they see fit. Further, the recent combination of Entercom and CBS Radio creates a new scaled national competitor that should be able to produce more attractive product at better margins and, the industry hopes, provide another vocal advocate to attract ad dollars to the space. Page 144 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0086703 SDNY_GM_00232887 EFTA01385419