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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

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