EFTA01385431

3 January 2018 HY Corporate Credit HY Multi Sector,Media, Cable & Satellite The following chart highlights music group and label market share, along with top selling releases. [Music Marketshare: VII) Scorecard (through September): Male Grows Sales + Steer!** Steaming I . Universal Music Group WMG) 363% 35.8% 2. Sony Music Enterla nment iSME) 26.9% 27.8% 3. Warner Musk 17.3% 17.8% Top Labels I. %lands (WMG) 10.3% 11.0% 2. Columbia ISonyl 9.5% 8.6% 3. Republic (Universal 8.7% 9.8% 4. IGA (Universal) 7.8% 8.1% 5. Capitol Muse Group (Unversall 5.9% 4.6% 6. RCA (Sony) 57% 6.5% 7. Wane Bros. IMAM 5.3% 4.5% 8. Epic (Sony) 38% 4.4% 9. Def Jam (Universal) 2.6% 3.5% 10. UMG Nashville (Universal) 2.6% 1.8% Top Albums I. Kendrick Larnar, DAMN (Universal) 2 23mm 1 88bn 2. Drake. Mare Lffe lUniversall 1 118mm 2 09Inn 3. Ed Shan% Diwas (WWI 1.83mm 135.0mm 4. BM* Man, Zeit - Magic (MAO) 1.38rnm 735.1mm 5. The Wookna. Startor lUnnrocsall 1 19rnm 1 15bn Top Singles (stroarring) 1. Luis its eddy Yankee ft Bieber. paclo Unwersall 2. Kerxinek Lamy. Wombs' (Universal) 3. Li Itel Vet 752 Tour Lief (WMG) 4. 65 SM4ran. Theis of You' MMO 5. Furrse. Mack Off' (Sony) 498 6mm 465 2rnm 432.5min 422.3mm 414 9mm Note sales maxis track and stream pevaom alcunn Sane nes00 On the M&A front, we expect most action to be tuck-in in nature (on both the recorded and publishing side of the business). The trends mentioned earlier affirm that the music industry is in the midst of another transition: consumers are migrating from downloading music to streaming it, While this trend is clearly weighing on track and album unit sales, we think that over time increasing adoption of services such as Apple Music, Spotify, Pandora, Google Play, and others should play positive for the music industry. The transition is still in its nascent stages (paying music subscribers represent just 2% of the worldwide population). Surely there will be some adjustments and tweaks to the operating models along the way (i.e., price adjustments, potential constraints and restrictions will be put on free streaming platforms to encourage the adoption of pay subscriptions, etc.). But in the end, we feel that incremental (non-pirated) consumption of music will be a plus for the music industry - the key for labels and artists will be harnessing and monetizing this consumption. Deutsche Bank Securities Inc. Page 157 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086716 CONFIDENTIAL SDNY_GM_00232900 EFTA01385431