Capital Confidence Barometer

December 2015 | ey.com/ccb | 13th edition Media & Entertainment Capital Conﬁ dence Barometer Despite headwinds, M&E appetite for dealmaking reaches new heights

Key M&A ﬁ ndings Sectors with the highest of executives are conﬁ dent appetite to acquire 83% that the state of the global Oil and gas 69% economy is improving Consumer products 67% and retail of executives see increased volatility in commodities and Mining and 67% 29% currencies to be the greatest metals risk to their business in the Diversiﬁ ed next 6-12 months industrial 66% products Power and 65% of executives expect to utilities 59% actively pursue acquisitions in the next 12 months Top investment destinations 1. United States 29% of executives are targeting deal 2. United Kingdom sizes greater than US$250m 3. China 4. India of executives are planning 5. Germany 41% to allocate 10% or more of their acquisition capital to emerging markets Capital Conﬁ dence Barometer

Companies embrace sustainable M&A as deal markets generate renewed growth The 13th edition of our Global Capital Conﬁ dence Barometer ﬁ nds companies pursuing deals at a rate not seen this decade. As 2015 global M&A value approaches record highs, executives’ long-term growth considerations outweigh short-term concerns about market volatility. With deal intentions at a six-year peak, executives’ economic optimism is steadfast, and companies are pursuing bolder, more innovative growth strategies. In 2015 we have seen continued volatility in commodities and currencies, intense swings in equity markets and de-celerating growth in several key emerging economies. Despite these challenges, companies remain confident about dealmaking in the current macroeconomic environment. Almost half of companies are now looking at acquisitions beyond their traditional industry boundaries, fueled by innovative disruption and changing customer preferences. Cross-border as well as cross-sector deals will also be a big part of the M&A story. The majority of potential acquirers are looking beyond their own national borders — with intentions around deals in the Eurozone strengthening. With all signs in the deal market pointing upward, some analysts raise the prospect of a market overheating. However, executives are proceeding judiciously as they look to M&A for growth. They are conducting more thorough due diligence, including new levels of cyber risk scrutiny. And they are prepared to walk away from transactions that do not meet their strategic goals. In short, M&A is back as an essential mechanism for generating long-term value. With global macroeconomic growth tempered and their industries perpetually challenged, executives are searching for more than organic growth. In government and global leadership circles, “sustainability” has long been a buzzword for big-picture thinking about the interdependence of nations and resources to support development worldwide. In their way, executives are pursuing their own form of corporate sustainability, reimagining their businesses to both safeguard the last decade’s cost-reduction rigor and build the next decade’s platform for growth. Pip McCrostie Global Vice Chair Transaction Advisory Services Capital Conﬁ dence Barometer | 1

Key Media & Entertainment M&A ﬁ ndings 81% of executives are conﬁ dent that the state of the global economy is improving of executives see increased volatility in 36% commodities and currencies to be the greatest risk to their business in the next 6-12 months 59% of executives expect to actively pursue acquisitions in the next 12 months 22% of executives are targeting deal sizes greater than US$250m of executives are planning to allocate 10% or 36% more of their acquisition capital to emerging markets 2 | Capital Conﬁ dence Barometer

Deal sizes move higher as M&E companies zero in on transactions that deliver scale efﬁ ciencies, provide access to growth markets or improve digital capabilities In the 13th edition of the Capital Conﬁ dence Barometer, media and entertainment (M&E) executives are more conﬁ dent about the global economy and key market indicators than 12 months ago. However, various cyclical and secular headwinds, such as foreign currency volatility and earnings pressure arising from the industry’s ongoing digital transformation, are tempering enthusiasm. Despite these challenges, nearly 60% of M&E respondents expect their company to actively pursue acquisitions in the next 12 months, an increase of 20 points compared to a year ago. Further, conﬁ dence in deal fundamentals, particularly the number and quality of acquisition opportunities, is on the rise. Unsurprisingly, digital disruption and the accelerating pace of business innovation and market evolution continue to have the greatest impact on the strategic outlook for M&E. In terms of their M&A strategy, while a quarter of M&E executives are looking to strengthen positioning in existing markets, 75% say they’ll be looking outside of their sector to access new technologies or expand into new end-markets. Target deal sizes are moving higher as M&E companies explore acquisitions that will “move the needle” in terms of growing scale (often in response to transactions announced by industry peers/ competitors) or enhancing digital capabilities and presence. At the same time, M&E leaders remain mindful of shifts in valuations compared to business fundamentals, as well as conditions in the equity and debt capital markets that are critical to acquisition funding. In addition to acquisitions, M&E players with diversiﬁ ed businesses are reviewing their portfolios on a regular basis to determine whether capital and management resources are being allocated to the most promising opportunities. In some cases, the strategic review will lead to transactions that re- shape the portfolio and re-position the company for future growth. As M&E executives look forward, they overwhelmingly expect the global M&A market to remain strong in the year ahead. To thrive in an era of rapid industry change where scale is often a key advantage, an active M&A strategy will complement execution in the core. Finally, I would like to recognize Tom Connolly, who is retiring from EY in December 2015 after more than 20 years of dedicated service to our clients and the organization. Tom was instrumental in building EY’s M&E practice, and is a friend and mentor to many across our organization and throughout the industry. We will miss Tom and wish him the best in his retirement. John Harrison Global Leader, Media & Entertainment Transaction Advisory Services Capital Conﬁ dence Barometer | 3

Macroeconomic environment Overall, M&E respondents are more positive in the global economy than they have been in the last three survey reporting periods. Further, despite the short-term challenges they face, M&E companies see M&A as a strong component of their strategic agenda in the existing macroeconomic environment. 81% of M&E executives are resilient in their economic outlook. 4 | Capital Conﬁ dence Barometer

Macroeconomic environment M&E executives remain bullish on Q: What is your perspective on the state of the global fundamentals despite recent market economy today? volatility Oct 14 Apr 15 Oct 15 Having grown accustomed to a low growth environment, 2% 1% 1% 1% 4% 4% M&E executives continue to express conﬁ dence in global 21% 11% economic trends. 18% 21% 23% More than 80% of M&E respondents see the global 45% economy either modestly or strongly improving, a 34% signiﬁ cant shift from a year ago. 56% 58% Strongly Modestly Stable Modestly Strongly improving improving declining declining Conﬁ dent outlook Q: Please indicate your level of conﬁ dence in the following at the global level. On the whole, M&E executives see operating fundamentals and the markets as being strong and improving. However, challenges 3% 1% 9% 3% 1% 1% 1% 4% 8% 4% 4% 4% such as structural changes related to digital transformation 16% and the strong dollar are impacting the outlook on corporate 17% 23% 20% 19% 23% earnings in the short term. The continued growth of cross- 27% 35% platform consumption across M&E, combined with the rise of 49% 36% 40% new players that rapidly achieve scale, is placing pressure on a 52% number of established M&E verticals. 74% 82% 64% 62% 76% 83% 50% 44% 56% 56% 76% 77% Oct 14 Apr 15 Oct 15 Oct 14 Apr 15 Oct 15 Oct 14 Apr 15 Oct 15 Oct 14 Apr 15 Oct 15 Corporate Short-term Equity Credit earnings market stability valuations availability Improving Stable Declining Currency volatility remains a signiﬁ cant Q: What do you believe to be the greatest economic risk to economic risk your business over the next 6-12 months? More so than executives across industries globally, M&E Increased volatility in 36% executives express concern about increased volatility in commodities and currencies currencies and how they are impacting both short-term results Slowing growth in key 23% and long-term strategic planning. emerging markets Economic and political 20% Currency ﬂ uctuations appear to have a greater impact on M&E situation in the eurozone companies than in other industries largely because many of the Increased global and 14% costs associated with doing business are in US dollars, yet their regional political instability revenue streams are increasingly international. Timing and pace of interest 7% rate rises in the US Capital Conﬁ dence Barometer | 5

Corporate strategy Although the focus continues to shift toward operational efﬁ ciency for a majority of M&E executives, more than half (58%) plan on allocating available capital to organic and inorganic growth. Unsurprisingly, digital disruption continues to have the greatest impact on M&E respondents’ core business and acquisition strategies, as M&E executives seek to focus on targeted transactions that either deliver scale efﬁ ciencies or enhance their digital capabilities and presence. 58% of M&E executives are focused on cost reduction and operational efﬁ ciency over the next 12 months. 6 | Capital Conﬁ dence Barometer

Corporate strategy Rapid innovation around the world is driving Q: What is the primary focus of your company’s organic M&E core business and M&A strategy growth over the next 12 months? Spurred on by the convergence of social, mobile, cloud and big Digital future: Technology is disrupting 31% data, as well as the growing demand for anytime, anywhere all areas of enterprise, driving myriad opportunities and challenges 25% access, digital technologies are impacting all aspects of the M&E enterprise, across sub-sectors and geographies. Entrepreneurship rising: Entrepreneurship 29% around the world is growing, driving the need At the same time, entrepreneurship, frequently focused for more supportive ecosystems 13% on digital/mobile-only products and services, is resulting in Global marketplace: Economic power continues 26% accelerating innovation and forcing change to long-established to shift east and south, driving new patterns of trade and investment 20% M&E ecosystems (and strategies). The growing economic inﬂ uence of China, India and the Asian economy more broadly, Health reimagined: Technology and demographics 7% converge to drive a once-in-a-lifetime as well as their population shifts toward large urban centers, is transformation of health services and provision 13% also expected to affect core business and acquisition strategies. Resourceful planet: Growing demand and 3% shifting supply are driving innovation in the energy and resources space 10% Urban world: Effective infrastructure 4% investment and sound planning will make future cities competitive and resilient 19% Core business 0 5 10 15 20 25 30 3 Acquisition strategy Portfolio optimization becomes a boardroom Q: Which of the following has been elevated on your priority for M&E companies boardroom agenda during the past six months? As the pace of change accelerates across the M&E landscape, Portfolio analysis, including strategic 29% companies are mindful of where they should be investing. divestment (spin-off/IPO) They’re taking their time to consider which assets they should Increased volatility in 27% commondities and currencies have in their portfolios and strategically divesting non-core Reducing costs/improving margins 24% assets to optimize available capital to pursue acquisitions that will help grow the business. Cybersecurity 9% Meanwhile, as we saw earlier, greater currency volatility is Regulatory and competition/ 6% on the boardroom agenda as it impacts the outcomes of cost antitrust oversight reduction initiatives and bottom line objectives. Aquisitions 4% Shareholder activism, including 1% returning cash to shareholders 0 5 10 15 20 25 30 M&E companies take a balanced approach Q: What percentage of available capital will you allocate to to capital allocation each of the following? Much like their global counterparts, M&E companies are Organic growth (e.g., investing in products, 31% balancing their allocation of available capital almost equally talent retention, research and development) among organic growth (such as investing development of Debt reduction 29% new technologies and IP), acquisitions and debt reduction. Inorganic growth 27% (e.g., acquisitions, alliances and JVs) Companies with the most active capital allocation processes consistently outperform those with more passive allocation Returning cash to shareholders 13% approaches. Capital Conﬁ dence Barometer | 7

M&A outlook M&E executives overwhelmingly expect the M&A market to remain strong in the year ahead, with a prominent shift in the M&A outlook from “stable” to “improving” since October 2014. 59% of M&E companies intend to pursue acquisitions in the next 12 months. 8 | Capital Conﬁ dence Barometer

MM&&AA o ouuttllooookk Expectations for deal activity continue Q: Do you expect your company to actively pursue to climb acquisitions in the next 12 months? M&E executives continue to raise expectations in terms of Expectations to pursue an acquisition deal intentions, reaching their highest levels in two years and 59% well above the CCB’s long-term average. 50% 34% 40% 25% Oct 13 Apr 14 Oct 14 Apr 15 Oct 15 M&E executives feel conﬁ dent overall about Q: Please indicate your level of conﬁ dence in the following at deal fundamentals the global level. % of positive attitude The increasing appetite for dealmaking comes as M&E Deal metrics executives report an improvement in their conﬁ dence in both 44% the quantity and quality of acquisition opportunities. Likelihood of closing 37% However, M&E executives are somewhat less optimistic about acquisitions 45% the likelihood of closing deals. This may be a result of an increase in the perceived difference in valuation between sellers Quality 60% and buyers compared to six months ago, or concerns in certain of acquisition 55% opportunities 50% M&E sub-sectors about regulatory receptivity to potential transactions. 78% Number of acquisition 71% opportunities 56% Oct 14 Apr 15 Oct 15 M&E companies trending toward larger Q: What is your largest planned deal size in the next deal sizes 12 months? There has been a material increase in M&E companies Oct 14 Apr 15 Oct 15 targeting deal sizes greater than US$250m as more 14% 14% 20% companies seek transformational deals that can help them achieve scale to reach new audiences, enhance their digital 3% 0% 2% presence and achieve greater efﬁ ciencies. That said, more than three-fourths of M&E executives are still planning complementary bolt-on deals to control costs 83% 86% 78% and improve efﬁ ciencies. Less than US$250m US$250m—US$1b Greater than US$1b Capital Conﬁ dence Barometer | 9

M&A outlook Modest shifts in perceived value gap Perceived valuation gap between buyers Q: How do you think seller value expectations compare to and sellers increases buyer expectations? The perceived difference in valuation between buyers and Apr 15 Oct 15 sellers has increased somewhat from six months ago. This 10% 3% may, in part, stem the recent equity market volatility for Ka_faÕ[Yfldq`a_`]j (25% or more) M&E companies. 9% 9% Somewhat higher 36% 39% (10%–25% gap) Overall, however, the gap remains manageable — as evidenced The gap is small by the robust level of deal activity in 2015 YTD — with 42% 45% 49% (<10%) seeing a gap of 10% or less between the two parties. No gap Increasing potential for a widening of the Q: Do you expect the valuation gap between buyers and value gap sellers in the next 12 months to: Two-thirds of M&E respondents see the valuation gap Apr 15 Oct 15 remaining stable or contracting over the next 12 months, a full 1% 3% 10 percentage points more than global respondents, who are more inclined to see values moving higher. 21% 33% However, compared to six months ago, a greater percentage Widen (33% vs. 21%) of M&E executives also expect the valuation gap 64% Stay the same to increase over the course of the next year, which may make 78% dealmaking more complicated for some players. Contract Asset value expectations are moving higher Q: What do you expect the price/valuation of assets to do over the next 12 months? Although two-thirds of M&E respondents see valuations staying constant over the next year, a healthy 30% see valuations Apr 15 Oct 15 increasing, a six percentage point increase from six months ago, 1% 4% as buyer competition may place upward pressure on prices. 75% 24% 66% 30% Increase Remain at current levels Decrease 10 | Capital Conﬁ dence Barometer

MM&&AA o ouuttllooookk M&A strategy to focus on strengthening market position Improving market share and expanding Q: What are the main drivers affecting your M&A strategy product/service offerings are driving over the next 12 months? acquisition strategy for M&E Gain market share in existing geographical markets 26% Persistent low economic growth is leading M&E companies to consolidate in an effort to gain market share. They are also Move into new geographical markets 20% seeking to move into new product or service areas, and access Aehjgn]kljm[lmjYdlYp]^Õ[a]f[a]k 19% new technology or IP as a means to accelerate growth. Access new technology/ 13% Consistent with their focus on cost reduction, M&E executives intellectual property see enhancing tax efﬁ ciency as another driver of M&A strategy. Reduce costs, improve margins 9% Move into new geographical markets 7% Aquire talent 7% A wide range of factors impact M&A execution Q: What are the main challenges to your M&A strategy over the next 12 months? Even as M&E companies seek to consolidate, they face increasing buyer competition for high-quality assets, Buyer competition (Including valuation 22% particularly as more companies have stepped off the sidelines gap between buyers and sellers) and returned to dealmaking. Adverse political environment 17% At the same time, an adverse political and economic Adverse economic environment 13% environment, as well as poor deal execution and challenges with integration are also having an impact on the execution of Deal execution and 17% integration capabilities transaction activity. Afkm^Õ[a]flghhgjlmfala]k' suitable targets 13% Funding availability 11% Regulatory or antitrust environment 7% Uncertain tax environment 0% Access to new technologies and product Q: What is the main strategic driver for pursuing an innovation lead M&E companies to explore acquisition outside your own sector? deals outside their sector Access to new materials or 40% Competition for consumer attention is propelling M&E companies production technologies to differentiate their content and IP, leading 75% of respondents New product innovation 35% to use M&A to gain access to new technologies, platforms and to Reacting to competition 15% innovate products to achieve a competitive edge. Alongside their desire to outpace the competition, M&E Technology and digitalization 5% companies are looking to acquire to simply keep up with Changes in customer behavior 5% accelerating technology changes that are having an impact across the M&E enterprise. Capital Conﬁ dence Barometer | 11

s Signiﬁ cant challenges still pose risks to deal success for M&E companies Q: For acquisitions completed recently, what was the most signiﬁ cant issue that contributed to deals not meeting expectations? Poor operating Strategic value overestimated/ Product/sales price and costs assumptions purchase price multiple too high margin deterioration 1% 10% 14% 14% 17% 19% 25% Unforeseen liabilities Sales volume declines/ Failure to Poor execution (tax, HR, pension, etc.) loss of customers achieve synergies of integration Integration and margin deterioration pose the biggest challenges Three-fourths of M&E companies are looking to buy assets outside of their core business, either as a market differentiator or as a means to keep pace with the evolution in technology. As a result, they are often acquiring assets that may be difﬁ cult to ﬁ t into their current operations. Integrating a new acquisition into optimized structures to realize cost synergies, or to spur growth, is a delicate exercise. This may require unbundling of key processes and rebundling to ﬁ t the buyer’s operating model. M&E companies can exploit revenue-based synergies if the merging businesses ﬁ nd s and risk they can command a price premium via enhanced capabilities (such as product innovation) or they boost sales volume through increased market coverage (by geographic or product-line extension). However, these same synergies can be undermined if the integration is rushed or insensitive to the acquired company’s market and culture. For example, sufﬁ cient time must be spent on preserving acquired brand value and customer relationships. Meanwhile, revenue and margin deterioration, and a failure to achieve synergies may reﬂ ect insufﬁ cient attention to due diligence prior to the acquisition, and the use of overly optimistic deal models as M&E companies race to stay ahead of both increasing competition and the technology curve. Integration faces further pressure and Q: What part of your deal process has been risks from digital most affected by advances in digital technology? As M&E companies increasingly acquire digital assets Post-merger integrations 44% with different cultural and operational models, integration Due diligence (including becomes even more challenging. The need to retain analytics, big data, digital 26% acquired talent and expertise is paramount. Integration and social media diligence) considerations have long needed to be part of the front- Sourcing and 16% end deal strategy – now more than ever in an increasingly selecting opportunities digital world. There has been no impact 14% Cyber-attack fears impact dealmaking Heightened media attention and greater corporate diligence (either sometimes or always), 52% do it as part awareness of cyber risk are contributing to increased of their core diligence process. Although they spend scrutiny at the C-suite and board level within M&E. the majority of time on IT systems, M&E companies are More than 90% of executives view cybersecurity as increasing their focus outside of IT when considering a signiﬁ cant risk. Slightly fewer than 50% of M&E cybersecurity risks to transactions. Areas of focus companies always perform cybersecurity due diligence include supply chain agreements and systems, as well as as a standard procedure (vs. 56% of global executives). business relationships such as customers and vendors. However, for those that do perform cybersecurity due Q: Do you perform cybersecurity due Q: If so, what type of due diligence is al challenge diligence on your transactions? performed? Select all that apply 4% 3% 85% 66% 68% 69% 49% Always 44% Sometimes Don’t know JV/ Supply chain Customer IT De Never Y^ÕdaYl]k agreements/system agreements/ systems interfaces system interfaces 12 | Capital Conﬁ dence Barometer

MM&&AA o ouuttllooookk M&E companies continue to evaluate deals in emerging markets M&E companies allocating more capital to Q: What percentage of your acquisition capital are you emerging markets going to allocate to the emerging markets in the next 12 months? Although the focus for M&E respondents remains on mature markets, more than one-third expects to allocate 10% or more Above 50% 5% of their acquisition capital to emerging markets — a seven 9% percentage point increase from six months ago. Lower trending 7% Oct 15 currencies in emerging markets in some cases have made these 25%—50% Apr 15 assets more attractive. That said, 10% of respondents have no 6% plans to invest in emerging markets at all, a seven percentage 10%—25% 24% point increase since April 2015. 14% Less than 10% 54% 68% None 10% 3% Top ﬁ ve investment destinations Stronger growth in high-quality assets in the US and the UK make these mature markets popular destinations for M&E executives. However, M&E companies continue to explore opportunities in major Asia-Paciﬁ c countries as China, India and Australia round out the top ﬁ ve destinations for M&E respondents. Top destinations China United States United Kingdom India Australia Capital Conﬁ dence Barometer | 13

M&A outlook Top M&A markets and their key characteristics China United United States Kingdom Even amid headlines over its recent The M&A market in the US is expected The United Kingdom has long been a economic slowdown, mainland China to maintain its upward momentum and favored destination for foreign ﬁ rms retains its status as an attractive continues to be attractive to foreign accessing the wider European Union. With destination for M&E executives. This is investors. Positive US economic strong domestic growth in 2015, similar due to levels of growth that remain very fundamentals and low interest rates levels forecast through 2016 and a focus strong relative to the global economy. The are all strengthening boardroom on reducing red tape, the UK should be Chinese Government now targets annual conﬁ dence. US companies continue to able to maintain its unique status as a growth at about 7%, down from previous perform exceptionally: The majority of global M&A hub. rates that ranged as high as 10%. With the S&P 500 beat earnings estimates For M&E, the UK’s projection of a US$13b economic rebalancing a stated Chinese in the ﬁ rst half of 2015. This has kept internet and mobile advertising market in policy, further investment opportunities investor morale up and driven M&A. 2017, in addition to its political stability should arise for inbound investors. As for Although slipping to second in top and low regulatory risk, makes it an outbound investment, lower domestic destinations, M&E companies still attractive investment destination. Deal growth, combined with increasingly see the US as having a number of activity is likely to remain stable as M&E assertive, cash-rich Chinese companies, high-quality targets that can give companies increasingly focus on acquiring should compel China-based enterprises to them a competitive advantage in a rights to compelling content and building invest capital overseas. multi-platform world. As the value digital businesses. Information services From an M&E perspective, the sector of compelling content rises, M&E companies’ cash-generative and resilient remains ripe for consolidation as the companies continue to divest their non- business models will continue to attract number of Chinese M&E players continues strategic assets and re-deploy capital M&A attention. to rise. toward producing better content and distribute it more widely. Furthermore, companies are still favoring buying — instead of building — digital properties (such as multichannel networks) to attract highly mobile, digital-ﬁ rst, millennials and build synergies with their existing content. 14 | Capital Conﬁ dence Barometer

M&A outlook India Australia Even as the outlook for many Like the UK, Australia offers relatively high emerging markets turns negative, nominal per capita consumer spending, investor sentiment toward India is political stability and low regulatory seeing a signiﬁ cant recovery. The risk. Although it has a small millennial Indian Government’s pro-business population, making it a market of limited stance and an increasingly promising scale from a digital perspective, there is a economic outlook are fostering a more pent-up demand for large deals that the attractive investment landscape for Australian Government is likely to unleash inbound investment. once it relaxes media ownership rules Several government initiatives, (currently under review). Meanwhile, M&E including the digitisation of cable companies are likely to continue striking television, the Phase III auctions of FM “bite-sized” deals, as well as partnerships/ radio spectrum and an increase in FDI JVs, to build scale in traditional business limits, are expected to drive growth and create digital revenue streams. in traditional media. India is also the second largest internet market after China with over 300 million internet users. Although digital content consumption is currently tempered by low smartphone and broadband penetration, a surge in broadband adoption is expected with the rollout of 4G services and the government’s Digital India initiative.1 While the ubiquity of media consumption has not yet translated into signiﬁ cant industry revenue – by 2016, India’s online advertising market is forecast to be a little more than US$1 billion, while the forecast for China is in excess of US$23 billion – India is expected to become the third largest economy in the world by 2030 2 after the US and China. With a triple fold increase in GDP expected over the next 15 years, M&E industry revenues and their contribution to the GDP are expected to increase signiﬁ cantly. 1 Spotlight on India’s entertainment economy: Seizing new growth opportunities, EYGM Limited, 2011. 2 “Global Forecast Model 2000-2018,” Magna Global, June 2013. Capital Conﬁ dence Barometer | 15

The Global Capital Conﬁ dence • In August and September, we y Barometer gauges corporate surveyed a panel of more than 70 conﬁ dence in the economic outlook M&E executives; 69% were C-suite and identiﬁ es boardroom trends and executives, 30% were senior vice- e practices in the way companies manage presidents, vice-presidents or their Capital Agendas — EY’s framework directors, and 1% were heads of for strategically managing capital. business units or departments. Surveyed companies’ annual global It is a regular survey of senior revenues were as follows: less executives from large companies than US$500m (21%); US$500m— around the world, conducted by the US$999.9m (23%); US$1b—US$2.9b Economist Intelligence Unit (EIU). (20%); US$3b—US$4.9b (11%); and Our panel comprises select global EY greater than US$5b (25%). clients and contacts and regular EIU • Global company ownership was contributors. as follows: publicly listed (70%), privately owned (24%), family- owned (3%) and government/state owned (3%). About this surv 1616 | C| Capitapital Cal Cononﬁﬁ dencdence Be Bararomeometterer

For a conversation about your capital strategy, please s contact us: Global Europe, Middle East, India John Harrison and Africa (EMEIA) Global Media & Entertainment William Fisher Transaction Advisory United Kingdom and Ireland Services Leader Media & Entertainment act [email protected] Transaction Advisory +1 212 773 6122 Services Leader wﬁ [email protected] Americas +44 20 7951 0432 Paul Sheahen Dietmar Koesling Northeast Germany, Switzerland, Austria nt Media & Entertainment Telecommunication, Media & Technology Transaction Tax Leader Transactions Advisory Services Leader [email protected] [email protected] +1 212 773 5578 +49 89 14331 17709 o Dorian Swerdlow Atul Mehta Northeast India Media & Entertainment Media & Entertainment Transaction Integration Leader Transaction Advisory [email protected] Support Leader +1 212 773 6179 [email protected] Dan Buchler +91 226 192 0210 West Ajay Shah Media & Entertainment India Transaction Advisory Media & Entertainment Services Leader Lead Advisory [email protected] Transaction Leader +1 213 977 7654 [email protected] Javier M. Rovira +91 226 192 0640 South America (excluding Brazil) Asia-Paciﬁ c Media & Entertainment Transaction Advisory Ben Kwan M&E c Services Leader China [email protected] Media & Entertainment +54 11 4875 4716 Operational Transaction Services Leader [email protected] +852 2849 9223 Ishwar Madhyastha Oceania Media & Entertainment Transaction Advisory Support Leader [email protected] +61 2 9248 5865 Capital Conﬁ dence Barometer | 17

EYEYEY | As|| Asssursusurancance | Te | Taax | Tx | Trraansactions | Advisnsactions | Advisoryory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. About EY’s Transaction Advisory Services How you manage your capital agenda today will define your competitive position tomorrow. We work with clients to create social and economic value by helping them make better, more-informed decisions about strategically managing capital and transactions in fast-changing markets. Whether you’re preserving, optimizing, raising or investing capital, EY’s Transaction Advisory Services combine a set of skills, insight and experience to deliver focused advice. We can help you drive competitive advantage and increased returns through improved decisions across all aspects of your capital agenda. © 2015 EYGM Limited. All Rights Reserved. EYG no. EA0107 1511-1742759 W ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com/ccb