Cerberus Global NPL Fund, L.P.

1 European Opportunity: Key Drivers of Transaction Volume Regulatory Pressure European regulators have continued to tighten regulations and are urging banks to NPL disposals >> The ECB continues to monitor the progress of NPL reduction, to present further plans to address the stock of NPLs (2) >> The European Commission has again stated in a press release on January 18, 2018 that "the total volume of NPLs remains high and is a source of concern which should be addressed - further reductions are imperative"(1) - No value assigned to collateral after 7 All new NPLs as of January 1, 2018 would have to be 100% provisioned at a minimum within 2 years (unsecured portion) and 7 years (secured portion) Globend, L berus Boa thavestro increase the pace of » Cerberus believes that banks and Asset Ma Management Companies (AMCs) will likely speed up the reduction of NPLs as a result of this increased pressure, as well as the uncertainty around further future changes to regulation equirements in October 2017 (³): (1) Source: European Commission, "Progress in the Reduction of Non-Performing Loans in Europe", January 18, 2018. (2) Source: Citi Research, "ECB Reinforces NPL Guidance", October 6, 2017. (3) Source: European Central Bank, "Addendum to the ECB Guidance to banks on non-performing loans", October 4, 2017. Proprietary and Confidential | Not for Further Distribution strategies and by early 2018, the ECB plans alone Find, L.Foning State vest 26 cerberus

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