3 January 2018 HY Corporate Credit HY Multi Sector.Media, Cable & Satellite Consumers continue to seel. out bargains as Department Store SSS lag Discount and club stores continue to drive same store dollar volume growth, albeit at a moderating pace. Department, women's accessory/specialty and men's & women's clothing stores remain relative underperformers. [Figure 14 Discount/Club Store SSS Growth 60 - 20 60 50 40 10 20 10 00 :+ul —Tosses ---Oemenwanaockio earn Sans Or I. ant Spincihnd. Samba' Anne LP i I.) 0.0 S 1201 25 (401 CEO/ (10. 11001 i1201 r• 1 5031,01 14sV ic en. nen .,04‘ sp<1., .......totos Retail —041:4 Saes 14.1:44.eres Amen I apselity San» Onset* ant *nem% Socnte. now IP 1111men Coeur., Store closures accelerated in 2017 as retailers sought to right size penetration Store closures more than tripled YoY in 2017 as retailers sought to right size their store fleets and bankruptcy filings accelerated. [Figure 16: Store closures accelerated in 2017 4,000 Figure 17: Closures driven by bankruptcy proceedings Closing Opening Radioshack (1.000) 650 Dollar Tree 2.000 2,258 3.470 Payless (700) 400 Arch 0 tas21 (400) 111 TJX Ascena (400) 100 Five Below (2.000) Sears/lCmart (358) 100 Ulte Gymobree (330) 100 Lidl (4.000) The floated (260) 100 Ross Stores (6.000) •Close Open hhgrogg (2201 90 Gap GemeStop (190) 89 Wellman (8.000) Bebe Stores (180) 70 Sephora 2016 2017 Wet Seel (171) 60 H&M Crocs (160) 60 Hobby Lobby JCPenney (138) 48 H&M 803G (120) 43 Dick's Sporting Goods American Apparel 010) 32 Target Gordmens (101) 24 Costco Michael Kora (100) 20 Bonobos Macy's (100) 19 Macy's Backstage The Children's Place (100) 17 Nordstrom Astrosoles (741 10 Forayer 21 Sam Dane. Sank Asp Gleettotal a leelnelogy yea ~to mart branercv Sean du/sof* Bs{ Rev Glob/ Raw/ a 44.ch-ciore c pi Apparol 411411(141 negative in May and decelerated through November CPI apparel deflated starting in May and decelerated considerably through November. Given consumers' increased ability to price compare, we will continue to pay particular attention to apparel inflation as digital penetration increases, arid retailers are increasingly forced to compete on price. Deutsche Bank Securities Inc. Page 165 CONFIDENTIAL - PURSUANT TO FED. R. CRI M. P. 6(e) CONFIDENTIAL SDNY_GM_00232908 DB-SDNY-0086724 EFTA01385439