4TH QUARTER &FULL YEAR 2022
RESULTSTHURSDAY MARCH 2, 2023

IMPORTANT INFORMATIONFORWARD LOOKING STATEMENTS
This presentation contains statements that may constitute forward-looking statements relating to the business, financial performance and results of Universal Music Group N.V. (the“Company”) and the industry in which the Company operates. These statements may be identified by words such as "expectation", "belief", "estimate", "plan", "target", or "forecast" and similar
expressions or the negative thereof; or by forward-looking nature of discussions of strategy, plans or intentions; or by their context. No representation is made that any of these statements orforecasts will come to pass or that any forecast results will be achieved. All statements regarding the future are subject to inherent risks and uncertainties and various factors could cause
actual future results, performance or events to differ materially from those described or implied in these statements. Such forward-looking statements are based on numerous assumptions
regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Further, certain forward-looking statements are based
upon assumptions of future events which may not prove to be accurate and none of the Company, the Company's shareholders or any adviser acting on behalf of the Company or any suchshareholders, or their respective subsidiary undertakings, affiliates, agents or advisers or any of such persons’ directors, officers, employees, members or agents nor any other person accepts
any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. Past performance is not an indication of future results and past performance
should not be taken as a representation that trends or activities underlying past performance will continue in the future. The forward-looking statements in this presentation speak only as at thedate of this presentation. Subject to any continuing obligations under applicable law or any relevant stock market listing rules, the Company, the Company's shareholders or any adviser
acting on behalf of the Company or such shareholders, and their respective subsidiary undertakings, affiliates, agents and advisers and any of such persons’ directors, officers, employees,
members or agents expressly disclaim any obligation or undertaking to release any updates or revisions to these forward-looking statements to reflect any change in the Company's
expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based after the date of this presentation or to update or to keep current anyother information contained in this presentation. You are therefore cautioned not to place any undue reliance on such forward-looking statements.

PRESENTATION
The financial information included in this presentation is unaudited. The 2022 financial information included in this presentation contains only part of the 2022 financial statements which still
have to be adopted by the shareholders at the upcoming annual general meeting of shareholders and will be included in the 2022 annual report. The 2022 annual report has not yet been
published and an auditors’ opinion has not yet been issued.

NON-IFRS MEASURESThis presentation includes certain alternative performance measures which are not defined in IFRS issued by the International Accounting Standards Board as endorsed by the EU. For further
information on non-IFRS measures used by the Company, see the relevant definitions included in the press release of the same date of this Presentation and the reconciliations of such nonIFRS measures included in the Appendix to such press release.

MARKET AND INDUSTRY DATAThe Company obtained market data used in this presentation from internal surveys, reports and studies, where appropriate, as well as market research, publicly available information andindustry publications.
2SIR LUCIAN GRAINGECHAIRMAN & CEO

3

FY2022 CONSOLIDATED RESULTS
REVENUE

ADJUSTED EBITDA

FREE CASH FLOW

+13.6%+11.7%+70.2%€ 10,340€ 1,086€ 2,135€ 1,788€ 8,504

€ 638

FY21

FY22

FY21

FY22

FY21

FY22

Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency, Adjusted EBITDA margin change in percentage points, Free Cash Flow growth as reported
44 OF THE TOP 5 GLOBAL ARTISTS IN 2022

1

TAYLOR SWIFT

2

BTS

AND

15
OF THETOP 20
3DRAKE

5THE WEEKND

GLOBALARTISTSIN 2022

SOURCE: IFPI

5

2022 GLOBAL ARTIST & SONGWRITER SUCCESSSPOTIFY

4 OF THE TOP 5

GLOBAL ARTISTS OF 2022
TAYLOR SWIFT • DRAKE
THE WEEKND • BTS

DEEZER

THE

TOP 2
&

5 OF THE TOP 10

APPLE MUSIC

UMPG SONGWRITERS IN

9 OF THE TOP 10

GLOBALLY STREAMED SONGSGLOBAL ARTISTS OF 2022
IMAGINE DRAGONS
THE WEEKND
EMINEMBILLIE EILISH
QUEEN“STAY”“As It Was”
“WAIT FOR U”“Super Gremlin”“Easy On Me”“Cold Heart (PNAU Remix)”“First Class”“Me Porto Bonito”“abcdefu”

SOURCE: SPOTIFY, DEEZER, APPLE MUSIC6

2022 U.S. SUCCESSSPOTIFY

4 OF THE TOP 5

YOUTUBE7 OF THE TOP 10
SONGS IN THE U.S.

ARTISTS OF 2022 IN THE U.S.
DRAKE • TAYLOR SWIFTKANYE WEST • THE WEEKND

BILLBOARD

THE

NO. 1

SONG ON THE HOT 100 YEAR-END CHARTGLASS ANIMALS “Heat Waves”

ENCANTO CAST “We Don’t Talk About Bruno”
JESSICA DARROW “Surface Pressure”

FUTURE FT. DRAKE, TEMS “Wait For U”
KAROL G, BECKY G “Mamiii”
IMAGINE DRAGONS “Enemy”
KAROL G “Provenza”
LIL BABY “In A Minute”&

7 OF THE TOP 10

ALBUMS ON YEAR-END CHART
MORGAN WALLEN Dangerous: The Double AlbumTAYLOR SWIFT Midnights

TAYLOR SWIFT Red (Taylor’s Version)
ENCANTO CAST Encanto (Original Motion Picture Soundtrack)
OLIVIA RODRIGO SOURDRAKE Certified Lover Boy
THE WEEKND Highlights

SOURCE: SPOTIFY, YOUTUBE, BILLBOARD

7

2022 REGIONAL SUCCESSUNITED KINGDOMGERMANY

ITALY

6 OF THETOP 107 OF THETOP 107 OF THETOP 10ARTISTS OF THE YEARTAYLOR SWIFTDRAKEEMINEMTHE WEEKND
KANYE WEST
D-BLOCK EUROPE

MOST-STREAMED ARTISTS
ON SPOTIFY
LUCIANO
BONEZ & RAF
CRO
EMINEMCAPITAL BRA
DRAKE
SIDO

MOST-STREAMED ARTISTS
ON SPOTIFYSFERA EBBASTA
LAZZA
BLANCOMARRACASH
RKOMIMADAMEGUÉFRANCETHE

TOP FEMALE
ARTIST

INDONESIALATIN AMERICA

THE

THE

UMG HAD THE

ON SPOTIFY

FOR 30 WEEKS IN 2022
WITH 29 BEING DOMESTICARTISTS

3 OF THE
TOP 5

IN CHINA’S HISTORY

EASON
CHAN

“The Lone Warrior”

ZACK
TABUDLO“Pano”#1 SONGLYODRA &ANDI RIANTO“Sang Dewi”

ON BILLBOARD’S
YEAR-END CHARTANGÉLEPHILIPPINES#1 ARTIST AND#1 SONGTHE#1 ARTIST

ADO

CHINA

MOST-STREAMED
SONG

JAPAN

LATIN ARTISTS ON GLOBALSPOTIFYTHE

FIRST JAPANESESONG TO REACH #1

ON APPLE MUSIC’S TOP 100
GLOBAL DAILY CHART

ADO“New Genesis”
J BALVINDADDY YANKEE
KAROL G

SOURCE: OCC, GFK, SPOTIFY, BILLBOARD

8

WELCOMING FUTURE STARS & ESTABLISHED ARTISTS
SAMARA JOY

FLO2023 BRITS

2023 GRAMMY AWARDSBEST NEWARTIST

DJ KHALEDRISINGSTAR
BBC RADIO 1’S

SOUND OF
2023
9

SIR LUCIAN GRAINGECHAIRMAN & CEO

10

GROWTH IN SUBSCRIBERS

11

SIR LUCIAN GRAINGECHAIRMAN & CEO

12

HARNESSING NEW TECHNOLOGYTO DRIVE VALUE OF CATALOGELTON JOHNx
ROBLOX“Beyond The Yellow Brick Road”

ELTON JOHNx
DISNEY+

Elton John Live
Farewell From Dodger Stadium

ABBA

VOYAGETHE BEATLESx
DOLBY ATMOS

Digital Avatar Live Concert

Revolver13

SIR LUCIAN GRAINGECHAIRMAN & CEO

14

WE REMAIN HIGHLY SELECTIVE IN OURCATALOG ACQUISTION STRATEGYCASH MONEY
RECORDED MUSICBOB DYLAN
PUBLISHING

STING
PUBLISHINGNEIL DIAMOND(Recorded Music &Publishing, 100+ previously
unreleased songs)

CATALOG>75 Artists including
Nicki Minaj, Lil Wayne,
Birdman and multiple
Drake albums>600 songs>450 songs>480 songs

SPOTIFY
LISTENERS>140M total Monthly
Listeners from Top 4
artists

9.4M Monthly
Listeners

9.5M Monthly
Listeners

6.7M Monthly
Listeners

SPOTIFY
TOP 10 SONGSTREAMS

12.3B Streams

1.6B Streams

1.2B Streams

0.9B Streams

IN ALL THESE CASES WE’RE ACQUIRING FULL CONTROL AND ACTIVE RIGHTS
15

SIR LUCIAN GRAINGECHAIRMAN & CEO

16

BOYD MUIREVP, CFO &PRESIDENT OF OPERATIONS17

FY2022 CONSOLIDATED RESULTS
REVENUE

ADJUSTED EBITDA

ADJUSTED EBITDA
MARGIN

FREE CASH FLOW

+13.6%+11.7%-0.4pp+70.2%€ 10,340€ 2,13521.0%€ 1,086
20.6%€ 1,788€ 8,504

€ 638

FY21

FY22

FY21

FY22

FY21

FY22

FY21

FY22

Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency, Adjusted EBITDA margin change in percentage points, Free Cash Flow growth as reported
18

LONG-TERM GROWTH AND MARGIN EXPANSIONSUSTAINED GROWTH IN REVENUE &ADJUSTED EBITDA
Revenue
Adjusted EBITDA

ADJUSTED EBITDA MARGIN EXPANSION€ 10,340€ 8,504€ 7,159

21.0%
20.1%

€ 7,432

20.6%

17.8%

€ 1,2722019€ 1,788€ 1,497

2020

2021

€ 2,135

2022

2019

2020

2021

2022

Note: € in Millions; historical financials and growth CAGRs are as reported
19

4Q22 CONSOLIDATED RESULTS
REVENUE

ADJUSTED EBITDA

ADJUSTED EBITDA
MARGIN+8.8%+15.5%+1.1pp€ 620€ 2,942€ 2,520

4Q21

20.0%

21.1%

€ 503

4Q22

4Q21

4Q22

4Q21

4Q22

Note: € in Millions; Revenue and Adjusted EBITDA growth in constant currency
20

EQUITY PLAN
Following the successful listing of UMG, theBoard and Shareholders agreed to finalize an
equity plan that would:• Reduce cash compensation costs• Align and incentivize executives andmanagement towards long-term value
creation• Enhance retention and recruitment of key
executives

Approval at May 12, 2022 AGM to issue up to
5% of share capital over 5 years for creation ofan equity planRun rate of ~€100M in cash savings and~€200M in non-cash share-based compensation
One-time transition grants and front-loaded
accounting recognition result in higher
non-cash share-based comp in 2023

NON-CASH SHARE-BASEDCOMPENSATION EXPENSE
Annualized Run-Rate

Timing Impact

One-Time Transition Grant€ 630€ 60-80
€ 188

€ 84
€
570

€ 550

€ 358

~€ 200~€ 100€100~€ 100Share-based Cash Savings Net EBITDA
Compensation
ImpactShare-based Cash Savings Net EBITDA
Compensation
Impact2023

RUN-RATE

Note: € in Millions.

21

RECORDED MUSIC
4Q REVENUE

FULL YEAR
REVENUE

FULL YEAR
ADJUSTED EBITDA

FULL YEAR ADJ.
EBITDA MARGIN

+5.6%

+8.8%

+9.7%

+0.2pp€ 7,937€ 2,235€ 1,975

4Q21€ 6,822

4Q22

FY21

€ 1,900

23.7%

23.9%

FY22

FY21

FY22

€ 1,614

FY22

FY21

Note: € in Millions; All growth rates are in constant currency.
22

RECORDED MUSIC REVENUE
2022 REVENUE BREAKDOWN

4Q22 REVENUE BREAKDOWN
4Q21+11.4%

+1.8%

FY21

4Q22

-33.0%

+3.1%

+8.0%

€ 1,044+10.0%

+9.3%

-2.9%

+4.1%

+13.4%€ 3,901

€ 404

€ 400

€ 1,420€ 324

Streaming

Download &Other Digital€ 1,207€ 1,072

€ 337

€ 63
Subscription

FY22

PhysicalLicense & Other

Subscription

Streaming

Download &Other Digital

PhysicalLicense & Other

Note: € in Millions; All growth rates are in constant currency.
23

RECORDED MUSIC REVENUETOP SELLERS
2022

FY2022 RECORDED MUSIC REGIONAL
BREAKDOWN
Taylor Swift

BTS

Encanto OST

Olivia Rodrigo

Morgan Wallen

The Beatles

The Weeknd

Kendrick
Lamar

The Weeknd

Imagine Dragons

Dawn FM

Olivia Rodrigo

Justin Bieber

BTS

The Weeknd

Morgan Wallen

ABBA

Taylor SwiftBillie Eilish

The Beatles

Drake

Europe€ 2,191+7.5%
North America€ 4,077

Asia

+6.6%

€ 1,007

After Hours

2021+14.0%
Latin America
Rest of World

€ 360

€ 302

+28.0%+15.0%
24

Note: € in Millions; All growth rates are in constant currency.

24

MUSIC PUBLISHING
4Q REVENUE

FULL YEAR
REVENUE

FULL YEAR
ADJUSTED EBITDA+22.1% +24.2%*+26.3% +18.3%*+25.0% +18.3%*€ 1,799

€ 530
€ 408

4Q21

FY21

-0.2pp+0.0pp*

€ 410

23.0%

22.8%

FY22

FY21

FY22

€ 307

€ 1,335

4Q22

FULL YEAR ADJ.
EBITDA MARGIN

FY22

FY21

Note: € in Millions; All growth rates are in constant currency.
*Adjusted to exclude impact of Change in Society Accounting.
25

MERCHANDISING & OTHER
4Q REVENUE

FULL YEAR
REVENUE

FULL YEAR
ADJUSTED EBITDA

FULL YEAR ADJ.
EBITDA MARGIN+54.1%+111.8%+1.4pp+14.6%

€ 181

€ 36

€ 618

€ 141

5.8%
4.4%

€ 363
€ 16

4Q21

4Q22

FY21

FY22

FY21

FY22

FY21

FY22

Note: € in Millions; All growth rates are in constant currency.
26

FY2022 FREE CASH FLOW• Dividend policy: 50% of net income• 2022 interim dividend: €435 million(€0.24/share)• Final dividend proposal 2022: €491 million(€0.27/share)

+42%
YoY
+15%
YoY

(148)

74

• Total 2022 dividend: €926 million(€0.51/share)
(255)

461

(359)
+70%
YoY

(161)
(100)
(30)

1,987

4

1,600
1,086

Operating
ProfitAdjustments* Royalty advance Other changes Net cash provided
payments, net of in net working
by operating
recoupments
capitalactivities before
income taxes paid

Incometax paid

Other investing Repayment of
Catalog
activities
lease liabilities
investment
and related
interest

Interest
paid, net

Other cash
items related
to financing
activities

Free
Cash Flow

Note: € in Millions; Y/Y growth rates as reported*Adjustments include amortization and depreciation of intangible assets, change in provisions, gain/(loss) on sale of assets and other non-recurring items.
27

BALANCE SHEETAND LIQUIDITY
STRONG BALANCE SHEETPROVIDES STRATEGIC FLEXIBILITYTOTAL DEBTNet Debt€ 2,595
€ 585

Cash

€ 2,250€ 439€ 2,01031/12/2021€ 1,81031/12/2022• Net Debt/Adjusted EBITDA of 0.9x

• Investment grade rating• Average debt maturity: 5.2 years• Variable rate exposure halved in 2022
• Capital allocation priorities:‒ Investing in core business‒ Strategic M&A (including catalogs)‒ Returning capital to shareholders (currently
through dividends)

SINCE LISTING, €1,289 MILLIONRETURNED TO SHAREHOLDERS
THROUGH DIVIDENDS

Note: € in Millions.
28
28

CONTENT INVESTMENTCONTENT INVESTMENTROYALTY ADVANCES, NET• Required / core to our business€ 752

Royalty Advances, Net• Drives long-term growth / Grows our frontline IP

Catalog Investments• Investing into a growing music market• Mix of new and established artists• Includes expanded relationships with superstar
artists wanting more services from UMG. Front loaded
advances to secure long-term, multifaceted rights-32.6%€ 364€ 507-59.3%€ 148

CATALOG INVESTMENTS• Not required to grow, more like M&A

€ 388

-7.5%

€ 359

• Highly selective acquirers of strategic assets that we
can control & improve monetization within our
portfolio• Strong financial discipline

FY21

FY22

• Multiple ways to finance: Cash from operations,
Balance sheet capacity, Special purpose vehicles

Note: € in Millions; Growth rates are as reported
29
29

CATALOG ACQUISITIONS:OUR BUSINESS IS HIGHLY CASH GENERATIVE
UMG CASH GENERATIONCAGR ’20-’22

Revenue: 18%
Adjusted EBITDA: 19%
Net cash from op. activities: 32%

Net cash fromoperatingactivities before
income taxes paid

Net cash as %of Adj. EBITDA€ 1,987€ 1,133€ 1,395

2020

2021

2022

76%

78%

93%

Note: 2020 values based on UMG’s restated financials
30

OUR GROWTH IS OVERWHELMINGLY ORGANIC€ 2,135

Note: Excludes Corporate M&A which is immaterial in this time frame; *Reported 2019 EBITDA as no adjustments in this year; **Rights acquisitions includes all acquisitions over €10M. ***Based on 2022 EBITDA impact of rights acquisitions madebetween 2019 and 2022 – these rights are not all incremental for first time in 2022 and additional rights from certain acquisitions are still transferring to UMG.
31

WE REMAIN HIGHLY SELECTIVE IN OURCATALOG ACQUISTION STRATEGY
We see everything
A seat at every table ensures we see
all available catalogs and can cherrypick the best assets for our portfolio

We understand what’s good
Unparalleled industry experiencegives us unique insight into catalogs
that offer strategic and financial value

We can do more
Creative know-how and deepindustry relationships let us do morewith the rights we acquire thananyone else

We are highly disciplined
Proprietary data and analytics
enables us to make the rightacquisitions at the right price32

Proprietary bottom-up model of music industry drivers
to inform outlook of major investments

WE BRING A
HIGH DEGREE
OF ANALYTICALRIGOR TO OURCATALOGINVESTMENTDECISIONSAdvanced analytical analysis including detailed
financial analysis with multiple potential scenario outcomes
Experience to know where to add value in frontline andcatalog repertoire
Our expertise in every major music market, our people
on the ground, our D2C initiatives, and our proprietary crossplatform data give us a unique understanding ofopportunities

33

ATTRACTIVE MULTIPLES FOR
THE MOST PREMIUM ASSETS- Catalog expenditure typically
represents ~30% of cash flows- Have spent ~€1.6 billion 2019-22% of UMG net cash from operating activities*
allocated to catalog acquisitions

Deal multiples average ~16x,
dropping to <13x with UMG
improved monetization~75% of acquisition is publishingrightsComposition of acquisition spend**

UMG weighted avg. deal multiple, 2019-2022

100%
Recorded
music

16.2x

82%

28%

24%
2019

<13x

2020

2021

Publishing

18%
2022

Purchase Price
EBITDA Multiple

Run-rate +add'l projects

Acquisition spend'19-'22

Note: *Net cash provided by/(used for) operating activities before income tax paid; ** Only includes deals >€10M, 2019-2022
34

SIR LUCIAN GRAINGE

Q&ACHAIRMAN AND CEO

BOYD MUIREVP, CFO & PRESIDENT OF OPERATIONSMICHAEL NASH

EVP, CHIEF DIGITAL OFFICER

35