Universal Music Group N.V. Reports Financial Results for theFirst Quarter Ended March 31, 2023
Summary Q1 2023 Results1••••

Revenue of €2,451 million increased 11.5% year-over-year, or 9.3% in constant currency, driven by strong
growth in Recorded Music and Music Publishing
Recorded Music subscription revenue grew 12.7% year-over-year, or 10.3% in constant currency andstreaming revenue grew 1.9% year-over-year, but declined 2.2% in constant currency
Adjusted EBITDA of €522 million increased 14.7% year-over-year, or 13.0% in constant currency, andAdjusted EBITDA margin expanded 0.6 percentage points to 21.3%.
Top sellers included King & Prince, Morgan Wallen, Taylor Swift, TOMORROW X TOGETHER and back number.

Hilversum, The Netherlands, April 26, 2023 -- Universal Music Group N.V. (“UMG” or “the Company”) today
announced its financial results for the first quarter ended March 31, 2023.
“Our strong start to the year demonstrates our consistency in developing great artists and introducing theirmusic to fans around the world,” said Sir Lucian Grainge, UMG’s Chairman and CEO. “We look forward tobuilding on this momentum and furthering our track record of transforming disruptive technologies into
opportunities to accelerate our business for our artists, fans and shareholders.”“Our results reflect the continued evolution of our business towards consistent and predictable revenue from a
growing array of sources,” said Boyd Muir, EVP, CFO and President of Operations for UMG. “With revenue up 9%
and Adjusted EBITDA up 13%, we’re encouraged by our first quarter and remain on track to meet our plans forthe year.”

UMG Results
Three Months Ended March 31,(in millions of euros)

Revenue
EBITDA

2023

2022(unaudited)

2,451
261

(unaudited)
2,199
454

%

%

YoY

const.

11.5%(42.5%)(43.4%)

14.7%

13.0%

EBITDA margin

10.6%

20.6%

(10.0pp)

Adjusted EBITDA margin

21.3%

20.7%

0.6pp

Adjusted EBITDA

522

455

9.3%

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency. Constant currency is calculated by taking current year results and comparing against prioryear results restated at current year rates.
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This press release includes certain alternative performance indicators which are not defined in the International Financial ReportingStandards (“IFRS”) issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative
performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release.

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Q1 2023 Results
Revenue for the first quarter of 2023 was €2,451 million, an increase of 11.5% year-over-year, or 9.3% in constantcurrency. UMG’s revenue growth was driven by strong growth in Recorded Music and Music Publishing, as
discussed further below.
EBITDA for the quarter fell 42.5% year-over-year, or 43.4% in constant currency, to €261 million and EBITDA
margin was 10.6%, compared to 20.6% in the first quarter of 2022. As expected, this decline was driven by
non-cash share-based compensation expenses of €261 million during the first quarter of 2023, compared to€1 million of non-cash share-based compensation expenses during the first quarter of 2022, as the Company
rolled out its first global equity compensation plan, which began in the fourth quarter of 2022. Excluding
non-cash share-based compensation expenses, Adjusted EBITDA for the quarter was €522 million, up 14.7%
year-over-year, or 13.0% in constant currency and Adjusted EBITDA margin expanded 0.6 percentage points to
21.3%, compared to 20.7% in the first quarter of 2022, as a result of revenue growth, operating leverage and cash
compensation savings of €9 million associated with the equity plan rollout.

Recorded Music
Three Months Ended March 31,(in millions of euros)

Subscriptions and streaming revenueof which streamingof which subscription

Downloads and other digital revenue
Physical revenue

License and other revenue
Recorded Music revenues

2023

2022

(unaudited)(unaudited)

315

309

1,329
1,014
55

%

YoY

const.

1,209

9.9%

900

12.7%

1.9%

7.1%

(2.2%)

10.3%

68(19.1%)(19.1%)

207

9.2%

8.1%

313

237

1,923

1,721

226

%

32.1%

32.6%

11.7%

9.6%

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency.
Q1 2023
Recorded Music revenue for the first quarter of 2023 was €1,923 million, up 11.7% compared to the first quarterof 2022, or 9.6% in constant currency. Subscription revenue grew 12.7% year-over-year, or 10.3% in constantcurrency, driven primarily by the growth in global subscribers. Streaming revenue grew 1.9% year-over-year,
but declined by 2.2% in constant currency, as the advertising industry continued to be impacted by a difficult
economic environment. Physical revenue increased by 32.1% year-over-year, or 32.6% in constant currency,
driven by strong CD and DVD sales in Japan and improvements in vinyl sales. Downloads and other digitalrevenue declined 19.1% year-over-year on both a reported and constant currency basis, as download sales
continued their industry-wide decline. License and other revenue improved 9.2% year-over-year, or 8.1% inconstant currency, as a result of improvements in neighbouring rights income. Top sellers for the quarter
included releases from King & Prince, Morgan Wallen, Taylor Swift, TOMORROW X TOGETHER and back number,while top sellers in the prior-year quarter included releases from Disney’s ‘Encanto’ Soundtrack, King & Prince,
The Weeknd, Fujii Kaze and Ado.

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Music PublishingThree Months Ended March 31,(in millions of euros)

Performance revenue

2023

2022

(unaudited)
90

Synchronisation revenue(unaudited)
91

69

Digital revenue

231

Mechanical revenue
Other revenue

12

Music Publishing revenues

YoY

const.

(1.1%)(2.2%)

20.9%

19.1%

11.3%

23

0.0%

8

425

%

62

191

23

%

375

50.0%

13.3%

7.8%
0.0%

50.0%

11.5%

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency.
Q1 2023
Music Publishing revenue for the first quarter of 2023 was €425 million, up 13.3% year-over-year, or 11.5%
in constant currency. Digital revenue grew 20.9% year-over-year, or 19.1% in constant currency, driven bycontinued growth in streaming & subscription. Performance revenue declined 1.1% year-over-year, or 2.2% inconstant currency, as the prior-year quarter benefited from a strong post-Covid recovery. Synchronization
revenue increased 11.3% year-over-year, or 7.8% in constant currency, due to continued growth insynchronization opportunities for music. Mechanical revenue was in line with last year.

Merchandising and Other
Three Months Ended March 31,(in millions of euros)

Merchandising and other revenues

2023

2022

(unaudited)(unaudited)

107

107

%

%

YoY

const.

0.0%(3.6%)

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency.
Q1 2023
Merchandising and Other revenue in the first quarter of 2023 was €107 million, in line with last year, but down
3.6% in constant currency. This decrease was due to a difficult comparison on touring merchandise sales
against last year's pent-up demand for touring following a post-Covid reopening, as well as a decline in retailsales, offset by an increase in direct-to-consumer sales.

3Conference Call Details
The Company will host a conference call to discuss these results on Wednesday, April 26, 2023 at 6:15PM CEST. A
link to the live audio webcast will be available on investors.universalmusic.com and a link to the replay will beavailable after the call.
While listeners may use the webcast, a dial-in telephone number is required for investors and analysts
to ask questions. Investors and analysts interested in asking questions can pre-register for a dial-in line
at investors.universalmusic.com under the "Financial Reports" tab.

Cautionary NoticeThis press release is published by Universal Music Group N.V. and contains inside information within themeaning of article 7(1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).

Forward-looking statements
This press release may contain statements that constitute forward-looking statements with respect to UMG’sfinancial condition, results of operations, business, strategy and plans. Such forward-looking statements may
be identified by the use of words such as ‘profit forecast’, ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘should’,‘intend’, ‘plan’, ‘probability’, ‘risk’, ‘target’, ‘goal’, ‘objective’, ‘will’, ‘endeavour’, ‘optimistic’, ‘prospects’ andsimilar expressions or variations on such expressions. Although UMG believes that such forward-looking
statements are based on reasonable assumptions, they are not guarantees of future performance. Actual
results may differ materially from such forward-looking statements as a result of a number of risks anduncertainties, many of which are related to factors that are outside UMG’s control, including, but not limited
to, UMG’s inability to compete successfully and to identify, attract, sign and retain successful recording artists
and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly
than anticipated, UMG’s reliance on digital service providers, UMG’s inability to execute its business strategy,
the global nature of UMG’s operations, UMG’s inability to protect its intellectual property and against piracy,
UMG’s inability to attract and retain key personnel, changes in laws and regulations and the other risks thatare described in our 2022 Annual Report. Accordingly, UMG cautions readers against placing undue relianceon such forward-looking statements. Such forward-looking statements are made as of the date of this press
release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking
statements, whether as a result of new information, future events or otherwise.

Alternative Performance Indicators
This press release includes certain alternative performance indicators which are not defined in IFRS issued
by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative
performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to thispress release.

About Universal Music GroupAt Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is
the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music,
music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue ofrecordings and songs across every musical genre, UMG identifies and develops artists and produces anddistributes the most critically acclaimed and commercially successful music in the world. Committed toartistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and businessmodels in order to broaden artistic and commercial opportunities for our artists and create new experiences forfans. For more information on Universal Music Group N.V. visit www.universalmusic.com.

Contacts
Media
James Murtagh-Hopkins - communicationsnl@umusic.com
Investors
Erika Begun - investorrelations@umusic.com
4Upcoming Calendar
Annual General Meeting of Shareholders: May 11, 2023

Appendix

Non-IFRS Alternative Performance Indicators
and Reconciliations
Reconciliation of Adjusted EBITDA
Three Months Ended March 31,(in millions of euros)

EBITDA
Non-cash share-based compensation expenses
Adjusted EBITDA

2023

2022

(unaudited)(unaudited)

261
261

522

%
YoY

454
1

455

(42.5%)
14.7%

Definitions
In this press release, UMG presents certain financial measures when discussing UMG’s performance that are
not measures of financial performance or liquidity under IFRS (“non-IFRS”). These non-IFRS measures (alsoknown as alternative performance indicators) are presented because management considers them important
supplemental measures of UMG’s performance and believes that they are widely used in the industry in which
UMG operates as a means of evaluating a company’s operating performance and liquidity. UMG believes that anunderstanding of its sales performance, profitability, financial strength and funding requirements is enhanced
by reporting the following non-IFRS measures. All non-IFRS measures should be considered in addition to, andnot as a substitute for, other IFRS measures of operating and financial performance as described in this press
release. In addition, it should be noted that other companies may have definitions and calculations for these
non-IFRS measures that differ from those used by UMG, thereby affecting comparability.
EBITDA and EBITDA margin
UMG considers EBITDA and EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating
performance and the performance of its operating segments as reported in the segment data. It enables UMG
to compare the performance of operating segments regardless of whether their performance is driven by
the operating segment’s organic growth or by acquisitions. EBITDA margin is EBITDA divided by revenue. To
calculate EBITDA, the accounting impact of the following items is excluded from the Operating Profit:i.
amortization of intangible assets;ii.
impairment losses on goodwill and other intangibles;iii.
other income and expenses related to transactions with shareowners (except when directly recognizedin equity);iv.
depreciation of tangible assets including right of use assets;v.
(gains)/losses on the sale of tangible assets, included right of use assets and intangible assets;vi.
restructuring expenses; andvii.
other non-recurring items.
Adjusted EBITDA and Adjusted EBITDA margin
The difference between EBITDA and Adjusted EBITDA consists of non-cash share-based compensation expenses
and certain one-time items that are deemed by management to be significant and incidental to normal
business activity. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. UMG considers Adjusted
EBITDA and Adjusted EBITDA margin, non-IFRS measures, to be relevant measures to assess performance of its
operating activities excluding items that may be incidental to normal business activity.

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