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 excessiv