INTERIM FINANCIAL
REVIEW FOR THE
SIX MONTH PERIODENDED JUNE 30, 2024

INTERIM FINANCIAL REVIEWEARNINGS ANALYSIS
UMG Results
Six Months Ended June 30,(in millions of euros, number of shares in millions, data pershare in euros)

Revenue

2024

2023

(unaudited)(unaudited)

1,069

767

5,526

EBITDA1

Adjusted EBITDA

1

Operating profit

Net profit attributable to equity holders of the parent
Adjusted net profit

1,2

Net cash provided by operating activities before
income tax paid

5,148

1,240

1,112

914

625

756

591

809

765

436

703

Free cash flow1

(460)

(13)

Weighted average number of shares outstanding

1,825

1,817

Earnings attributable to UMG N.V. shareowners per
share - basic

0.50

0.34

Earnings attributable to UMG N.V. shareowners per
share - diluted

0.49

0.34

Adjusted net profit per share - basic

0.44

0.42

Earnings per share

Adjusted net profit per share1,2

Adjusted net profit per share - diluted

0.44

0.42

As at
(in millions of euros)

Financial Net Debt1

1.
2.

June 30, 2024

(unaudited)(2,612)

December 31,
2023(audited)(1,689)Non-IFRS measures
Following a change in the definition, the HY23 Adjusted Net Profit has
been restated to exclude the impacts of restructuring expenses and related
tax impacts.

This Interim Financial Review and Unaudited Condensed Consolidated Interim
Financial Statements includes certain alternative performance indicators which
are not defined in the International Financial Reporting Standards ("IFRS")
issued by the International Accounting Standards Board as endorsed by the EU.
The descriptions of these alternative performance indicators and reconciliationsof non-IFRS to IFRS measures are included in this report and its Appendix.
Reference may also be made to the 2023 Annual Report.

MUSIC IS UNIVERSAL Half Year Results 2024 | 2

INTERIM FINANCIAL REVIEW

Analysis of Operating Results
Revenues for the first half of 2024 were €5,526 million, up 7.3% compared to
the first half of 2023 and up 8.8% at constant currency. This increase wasdriven by improvements across all divisions. Recorded Music grew 6.3% atconstant currency compared to the first half of 2023, Music Publishing was
up 14.3% at constant currency and Merchandising and Other grew by 29.7% atconstant currency.
For a detailed analysis of revenues by business segment, please refer to thepress release dated July 24, 2024 (the "press release") and to Note 3 to theUnaudited Condensed Consolidated Interim Financial Statements for the period
ended June 30, 2024.
Six Months Ended June 30,(in millions of euros)

Artist costs

Product costs

Cost of Revenues

2024

2023

(unaudited)(unaudited)

529

426

2,584

3,113

2,385

2,811

Cost of Revenues grew by €302 million to €3,113 million in the first half of 2024
from €2,811 million in the first half of 2023 reflecting the increase in revenues.
Cost of revenues as a percentage of revenues increased to 56.3% from 54.6%
primarily driven by a greater proportion of Music Publishing and Merchandising
and Other revenues, which have higher Cost of revenues compared to RecordedMusic and in particular by higher product costs.
Artist costs increased by €199 million from €2,385 million in the first half 2023
to €2,584 million in the first half 2024 driven by the increase in sales. As apercentage of revenues, artists costs increased to 46.8% in the first half 2024
from 46.3% in the first half of 2023 on higher relative costs in both Music
Publishing and Merchandising and Other driven by revenue and repertoire mix.
Product costs increased by €103 million to €529 million in the first 6 monthsof 2024 from €426 million in the first 6 months of 2023 reflecting the growth inrevenues. Product costs as a percentage of revenues increased to 9.6% from
8.3% driven primarily by the higher proportion of merchandising sales.
Selling, general and administrative expenses decreased by €99 million to€1,512 million in the first half 2024 from €1,611 million in the first half 2023 anddecreased as a percentage of revenues to 27.4% in first half 2024 from 31.3%
in first half 2023. Selling, general and administrative expenses in the first half2024 included €171 million in non-cash share-based compensation expense
while in the first half 2023, selling, general and administrative expenses
included €345 million in non-cash share-based compensation expenses.
However, Selling, general and administrative expenses for the first 6 monthsof 2024 included €113 million restructuring charges compared to €15 million
restructuring charges in the first 6 months of 2023 due to the previously
announced strategic organizational redesign.

MUSIC IS UNIVERSAL Half Year Results 2024 | 3

INTERIM FINANCIAL REVIEW

Operating profit was €756 million in the first half of 2024, compared to€591 million for the first half of 2023, an increase of €165 million (27.9%) or
an increase of 32.4% at constant currency, due to the growth in revenues andthe lower non-cash share-based compensation expense in the first half of2024 partly offset by higher restructuring charges. As a percentage of revenues,
operating profit improved to 13.7% in the first half 2024 from 11.5% in the firsthalf 2023 due to the lower Selling, general and administrative expenses partially
offset by higher relative Cost of revenues.

Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA
Six Months Ended June 30,(in millions of euros)

Operating profit

2024

2023

(unaudited)(unaudited)

200

187

756

Adjustments

Amortisation and depreciation expense
Restructuring expenses

113(Gain)/loss on sale of assets

-

591

15

(26)

EBITDA

1,069

767

Adjusted EBITDA

1,240

1,112

Non-cash share-based compensation expense

171

345

EBITDA increased by €302 million to €1,069 million in the first half of 2024
compared to €767 million in the first half of 2023 due to the increase inrevenues and lower non-cash share-based compensation expense as detailed
above. EBITDA margin increased by 4.4pp to 19.3% in the first 6 months of 2024
compared to 14.9% in the first 6 months of 2023.
For a detailed analysis of EBITDA by business segment, please refer to thepress release and to Note 3 to the Unaudited Condensed Consolidated Interim
Financial Statements for the period ended June 30, 2024.
Adjusted EBITDA was €1,240 million in the first half of 2024 up €128 million
compared to €1,112 million in the first half of 2023 due to the improved
revenues. Adjusted EBITDA margin increased by 0.8pp to 22.4% in the first 6
months of 2024 from 21.6% in the first 6 months of 2023 driven by the revenue
growth and cost savings from the previously announced strategic organizational
redesign, partially offset by the higher Cost of revenues.

Financial results
Financial income and Financial expenses were a net income of €515 million in
the first half 2024, compared to a net income of €265 million in the first half
2023, an improvement of €250 million. For the first half 2024, the revaluation of
the investments in listed and other companies including Spotify and Tencent
Music Entertainment was a net income amount of €566 million, compared
to a net income of €313 million for the first half 2023, an improvement of€253 million.

MUSIC IS UNIVERSAL Half Year Results 2024 | 4

INTERIM FINANCIAL REVIEW

Income taxes
For the first half of 2024, income taxes were a net expense of €345 million,
compared to a net expense of €227 million in the first half of 2023. This increase
notably reflected the improvement in Operating profit and the increase in thedeferred tax charge relating to the revaluation of the investments in listedcompanies including Spotify and Tencent Music Entertainment (€141 million
expense, compared to €84 million expense for first half of 2023).

Non-controlling interests
For the first half of 2024, earnings attributable to non-controlling interests were
€4 million, slightly higher than the €2 million for the first half of 2023.

Net profit attributable to equity holders of the parent
For the first 6 months of 2024, net profit attributable to equity holders of
the parent amounted to a profit of €914 million (or €0.50 per share - basic),
compared to €625 million for the first 6 months of 2023 (or €0.34 per share- basic). Net profit attributable to equity holders of the parent increased by€289 million, reflecting:•the improvement in Operating Profit (+€165 million) driven by higher
revenues and the lower non-cash share-based compensation expense in
the first half 2024 and despite higher restructuring charges; and•the improvement in Financial results (+€250 million) driven by thefavourable variance in the revaluation of the investments in listed andother companies including Spotify and Tencent Music Entertainment (+€253 million);
partially offset by:•
the increase in Income tax charges (-€118 million) due to the improvementin Operating profit and the increase in deferred tax charge relating to therevaluation of the investments in listed companies (-€57 million).

MUSIC IS UNIVERSAL Half Year Results 2024 | 5

INTERIM FINANCIAL REVIEW

Adjusted net profit
Reconciliation of Net profit attributable to equity holders of the parent to
Adjusted net profit
Six Months Ended June 30,(in millions of euros)

2024

2023

(unaudited)(unaudited)

Financial income and expenses, excluding interestand income from investments

(553)

(300)

Non-cash share-based compensation expense
Restructuring expense

171

Amortisation of catalogues

113

345

121

120

809

765

Net profit attributable to equity holders of the parent

Income tax on adjustments
Adjusted Net Profit

1

914

43

625

15

(40)

1 Following a change in the definition, the HY23 Adjusted Net Profit has been restated to exclude the impacts ofrestructuring expenses and related tax impacts.

Adjusted net profit in the first half 2024 amounted to a profit of €809 million (or€0.44 per share - basic), compared to €765 million for the first half 2023 (or €0.42
per share - basic). Adjusted net profit increased by €44 million, including:•the growth in Adjusted EBITDA (+€128 million); offset by•
the smaller gain on the disposal of assets in the current period (€26 million); and•the increase in income taxes reported to adjusted net profit (-€35 million).

MUSIC IS UNIVERSAL Half Year Results 2024 | 6

INTERIM FINANCIAL REVIEWLIQUIDITY AND
CAPITAL RESOURCES
Financial Net Debt
As at
(in millions of euros)

Cash and cash equivalents
Derivative financial assets
Bank overdrafts
Bonds

Commercial papers
Other

Borrowings at amortised cost
Financial Net Debt

June 30, 2024

(unaudited)

December 31, 2023

438
-

(24)

(1,808)(1,142)(76)(3,050)(2,612)(audited)

413
2

(26)

(1,808)(197)(73)(2,104)(1,689)Changes in the Financial Net Debt
As of June 30, 2024, UMG’s Financial Net Debt amounted to -€2,612 million
compared to Financial Net Debt of -€1,689 million as of December 31, 2023, an
increase in net debt of €923 million. This change was mainly attributable tothe following:•
UMG paid the final dividend with respect to fiscal year 2023 of which€455 million was paid in June 2024 and the associated withholding tax paidin July 2024;•
Net cash used for investing activities of €615 million, primarily due to the€96 million investment in Music Publishing and Recorded Music catalogues,€70 million net other intangible and capital expenditure and €460 million
net purchase of consolidated companies, equity affiliates and financial
assets relating to several strategic investments in the period including
investments in Chord Music Partners, NTWRK and Mavin Global; and•repayment of €53 million in relation to lease liabilities and associatedinterest and €35 million in other net interest payments.
This was partially offset by the following:•
Net cash provided by operating activities of €237 million.
UMG believes that the cash flow generated by its operating activities, its cash
surpluses, net of amounts used to reduce UMG’s debt, as well as funds available
through undrawn bank credit facilities and additional funding opportunities will
be sufficient to cover expenses and investments necessary for its operations, its
debt service, the payment of income taxes, the distribution of dividends, as wellas its investment projects, if any, for the next 12 months.

MUSIC IS UNIVERSAL Half Year Results 2024 | 7

INTERIM FINANCIAL REVIEW

Equity portfolio
As of June 30, 2024, UMG held a portfolio of listed non-controlling equity
interests (including Spotify) with an aggregate market value of approximately€2,066 million (before taxes), compared to €1,227 million as of December 31, 2023.
The increase in market value during 2024 was due to the fluctuation in shareprice of our listed investments most notably of Spotify.

Cash flow analysis
Net cash provided by operating activities before income tax
For the first half of 2024, changes in net cash provided by operating activities
before income tax amounted to an inflow of €436 million compared to an inflowof €703 million for the first half of 2023, a decline of €267 million. This decline
was mainly attributable to the following items:
the increase in Royalty advances payments net of recoupments (•€220 million) due to the timing of major artist deal renewals and extensions
partly offset by increased recoupment;
the unfavourable variance in Adjustments (-€167 million) primarily driven•
by lower non-cash share based compensation expense reflected in
Operating profit and offset within Adjustments and higher cash paid to settle
employee tax withheld (see breakdown of Adjustments in the Appendix); and•the unfavourable variance in Other working capital (-€45 million);
partially offset by:•
the increase in Operating profit (+€165 million).

Net cash provided by operating activities
Net cash provided by operating activities in the first 6 months of 2024 amounted
to an inflow of €237 million compared to an inflow of €495 million for the first 6
months of 2023, a decline of €258 million due to the €267 million decrease in Net
cash provided by operating activities before income tax, only partially offset by
the decrease in Income tax paid (+€9 million).

Net cash used for investing activities
Net cash used for investing activities in the first half 2024 was a €615 million
net outflow compared to a €423 million net outflow for the first half 2023,
an increased outflow of €192 million. Investment in consolidated companies(-€34 million, net) and equity affiliates (-€324 million) in the first half of 2024
were higher than in the first half of 2023 reflecting various strategic investments
including the investments in Chord Music Partners, NTWRK and Mavin Global.
Investment in financial assets were lower (+€104 million) than in the first halfof 2023, whilst Divestitures of financial assets of €77 million in the first half of2024 included the release of funds, previously paid into escrow, to complete acatalogue acquisition during the period. Catalogue investments were marginallyhigher (-€7 million) than in the first half of 2023.

MUSIC IS UNIVERSAL Half Year Results 2024 | 8

INTERIM FINANCIAL REVIEWNet cash provided by financing activities
Net cash provided by financing activities in the first 6 months of 2024 was a€415 million net inflow compared to a €23 million net outflow for the first 6
months of 2023, an increased inflow of €438 million. This was mainly attributable
to the increase in net proceeds from borrowings in the first 6 months of 2024of €955 million compared to an increase in debt in the first 6 months of 2023 of€516 million (+€439 million). Dividend and interest payments in the first half of2024 were broadly in line with payments in the first half of 2023.

Reconciliation of cash provided by operating activities to Free Cash Flow
Six Months Ended June 30,(in millions of euros)

Net cash provided by/(used for) operating activities
before income tax paid

2024

2023

(unaudited)(unaudited)

436

703

Income tax paid

(199)

(208)

Net cash provided by/(used for) investing activities

(615)

(423)

(53)

(47)

6

-

Net cash provided by/(used for) operating activities
Repayment of lease liabilities and related
interest expenses
Interest, net

Other cash items related to financing activities
Free Cash Flow

237

(35)
(460)

495

(38)
(13)

Free Cash Flow
Free Cash Flow in the first half of 2024 was a €460 million net outflow compared
to a €13 million net outflow for the first half of 2023, a decrease of €447 million.
This decrease was partly due to the decline in Net cash provided by operating
activities (-€258 million) in the first half 2024 period compared to the first half of2023 predominately driven by the increase in Royalty advance payments, net ofrecoupments. In addition, Net cash used for investing activities was higher thanin the first 6 months of 2023 (-€192 million) due to greater strategic investmentsin the period.

MUSIC IS UNIVERSAL Half Year Results 2024 | 9

INTERIM FINANCIAL REVIEWCAUTIONARY STATEMENTS
Risk and uncertainties

The 2023 Annual Report on pages 118 to 136 outlines a number of risk factors
which UMG still believes are the key risks and uncertainties concerning thebusiness and industry in which UMG operates, and that alone or in combination
with other events or circumstances, could have a material adverse effect on
UMG’s business, results and financial position.

External auditors' involvement

The Interim Financial Review and Unaudited Condensed Consolidated Interim
Financial Statements have not been audited by UMG’s external auditors.

Related party transactions

Please refer to Note 12 of the Unaudited Condensed Consolidated Interim
Financial Statements for details on related party transactions.

Forward-looking statements

These Interim Financial Review and Unaudited Condensed Consolidated
Interim Financial Statements may contain statements that constitute forwardlooking statements with respect to UMG’s financial condition, results ofoperations, 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’ and similar
expressions or variations on such expressions. Although UMG believes thatsuch forward-looking statements are based on reasonable assumptions, they
are not guarantees of future performance. Actual results may differ materiallyfrom such forward-looking statements as a result of a number of risks anduncertainties, many of which are related to factors that are outside UMG’scontrol, including, but not limited to, UMG’s inability to compete successfully
and to identify, attract, sign and retain successful recording artists andsongwriters, failure of streaming and subscription adoption or revenue to growor 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 andregulations and the other risks that have been described in UMG’s 2023 annual
report. Accordingly, UMG cautions readers against placing undue reliance onsuch forward-looking statements. Such forward-looking statements are madeas of the date of these Interim Financial Review and Unaudited Condensed
Consolidated Interim Financial Statements. 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.

MUSIC IS UNIVERSAL Half Year Results 2024 | 10

INTERIM FINANCIAL REVIEW

Responsibility statement

In accordance with article 5:25d(2)(c) of the Dutch Financial Supervision Act (Wetop het financieel toezicht), we confirm that, to the best of our knowledge:•
the Unaudited Condensed Consolidated Interim Financial Statements forthe six-month period ended June 30, 2024, which have been prepared inaccordance with IAS 34 ‘Interim Financial Reporting’ as adopted by theEuropean Union, give a true and fair view of the assets, liabilities, financial
position and result of the Company and the undertakings included in the
consolidation as a whole;•
the Interim Financial Review provides a true and fair view of the important
events that have occurred during the first six months of the financial
year, and their impact on the Unaudited Condensed Consolidated Interim
Financial Statements, together with a description of the principal risks anduncertainties for the remaining six months of the financial year, as well asof the major related parties transactions.
On behalf of the Board,
Sir Lucian Grainge, Executive Director, Chairman and Chief Executive Officer
Vincent Vallejo, Executive Director, Deputy Chief Executive Officer

MUSIC IS UNIVERSAL Half Year Results 2024 | 11

FINANCIAL REVIEWAPPENDIX

FINANCIAL REVIEW APPENDIXNON-IFRS ALTERNATIVEPERFORMANCE INDICATORSAND RECONCILIATIONS
UMG results by segment
Six months ended June 30,(in millions of euros)

Revenues

Recorded Music

Music Publishing

Merchandising & Other
Corporate Centre

Elimination of intersegment transactions
Total UMG

Adjusted EBITDA
Recorded Music

Music Publishing

Merchandising & Other
Corporate Centre
Total UMG

2024

2023

(unaudited)(unaudited)

4,190

4,003

341

264

1,008
-

%

%

YoY

const.

4.7%

6.3%

889

13.4%

14.3%

-

0.0%

0.0%

29.2%

29.7%

(13)

(8)

5,526

5,148

7.3%

8.8%

1,065

969

9.9%

11.9%

20

(10.0%)(10.0%)

1,112

11.5%

13.4%

241
18

(84)

1,240

216
(93)

11.6%

(9.7%)

12.1%(9.7%)

Note: % YoY indicates % change year-over-year; % const. indicates % change
year-over-year adjusted for constant currency. Constant currency change iscalculated by taking current year results and comparing against prior year
results restated at current year rates.

MUSIC IS UNIVERSAL Half Year Results 2024 | 13

FINANCIAL REVIEW APPENDIX

Recorded MusicSix months ended June 30,(in millions of euros)

Subscriptions andstreaming revenueof which streamingof which subscription
Downloads and otherdigital revenue

Recorded Music revenues
Adjusted EBITDA

Adjusted EBITDA margin%

YoY

const.

2024

2023(unaudited)(unaudited)

2,945

2,755

6.9%

7.9%

2,260

2,082

673

1.8%

2.5%

94

116

(19.0%)(16.8%)

612

639(4.2%)

4,190

4,003

4.7%

685

Physical revenue

License and other revenue

%

539

1,065

25.4%

493
969

24.2%

8.5%

9.6%

0.3%

9.3%

10.2%

9.9%

11.9%

1.2pp

6.3%

Note: % YoY indicates % change year-over-year; % const. indicates % change
year-over-year adjusted for constant currency.

Music Publishing
Six months ended June 30,(in millions of euros)

Performance revenue

Synchronisation revenue
Digital revenue

Mechanical revenue
Other revenue

Music Publishing revenues
Adjusted EBITDA

Adjusted EBITDA margin

2024

%

%

YoY

const.

187

14.4%

15.7%

495

20.2%

20.7%

2023

(unaudited)(unaudited)

124

129

214
595
51
24

52
26

(3.9%)(1.9%)(7.7%)(3.1%)(1.9%)
0.0%

1,008

889

13.4%

14.3%

241

216

11.6%

12.1%

23.9%

24.3%

(0.4pp)Note: % YoY indicates % change year-over-year; % const. indicates % change
year-over-year adjusted for constant currency.

MUSIC IS UNIVERSAL Half Year Results 2024 | 14

FINANCIAL REVIEW APPENDIX

Merchandising and OtherSix months ended June 30,(in millions of euros)

Merchandising andother revenues

%

%

YoY

const.

2024

2023(unaudited)(unaudited)

341

264

29.2%

29.7%

18

20

(10.0%)(10.0%)

Adjusted EBITDA

Adjusted EBITDA margin

5.3%

7.6%

(2.3pp)Note: % YoY indicates % change year-over-year; % const. indicates % change
year-over-year adjusted for constant currency.

Net cash provided by operating activities - Adjustments

Operating profit includes certain non-cash items that are adjusted to get to the
Net cash provided by operating activities as follows:
Six months ended June 30,(in millions of euros)

Amortization and depreciation expense

2024

2023

(unaudited)(unaudited)

(23)

220

200

Non-cash share-based compensation expense, net of
employees tax withheld
Changes in provisions, net

36

Adjustments

213(Gain)/loss on sale of assets

187

(1)

-

(26)

380

Adjusted net profit per share
Six months ended June 30,(in millions of euros)

Adjusted Net Profit

2024

2023

(unaudited)(unaudited)

1,825

1,817

23

6

1,848

1,823

0.44

0.42

809

1

Number of shares (in millions)

Weighted average number of shares outstanding
Potential dilutive effects related tosharebased compensation

Adjusted weighted average number of shares
Adjusted net profit per share (in euros)

765

1

Adjusted net profit per share - basic

Adjusted net profit per share - diluted

0.44

0.42

1 Following a change in the definition, the HY23 Adjusted Net Profit has been restated to exclude the impacts ofrestructuring expenses and related tax impacts.

MUSIC IS UNIVERSAL Half Year Results 2024 | 15

FINANCIAL REVIEW APPENDIX

DEFINITIONSIn this Interim Financial Review, UMG presents certain financial measures when
discussing UMG’s performance that are not measures of financial performanceor liquidity under IFRS (“non-IFRS”). These non-IFRS measures (also known
as alternative performance indicators) are presented because management
considers them important supplemental measures of UMG’s performance andbelieves that they are widely used in the industry in which UMG operates asa means of evaluating a company’s operating performance and liquidity. UMG
believes that an understanding of its sales performance, profitability, financial
strength and funding requirements is enhanced by reporting the following nonIFRS measures. All non-IFRS measures should be considered in addition to,and not as a substitute for, other IFRS measures of operating and financial
performance as presented in UMG’s Unaudited Condensed Consolidated Interim
Financial Statements and the related Notes. In addition, it should be notedthat other companies may use 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 relevantmeasures to assess its operating performance and the performance of its
operating segments as reported in the segment data. It enables UMG tocompare the performance of operating segments regardless of whether theirperformance is driven by the operating segment’s organic growth or byacquisitions. It excludes restructuring expenses, which may impact period-toperiod comparability. EBITDA margin is EBITDA divided by revenue.
To calculate EBITDA, the accounting impact of the following items is excluded
from Operating Profit:i. amortisation of intangible assets;
ii. impairment losses on goodwill and other intangibles;iii. depreciation of tangible assets including right of use assets;iv. (gains)/losses on the sale of tangible assets, including right of use assets
and intangible assets; andv. restructuring expenses.

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 businessactivity. 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
segments excluding items that may be incidental to normal business activity
and excluding non-cash share based compensation which may impact periodto-period comparability.

MUSIC IS UNIVERSAL Half Year Results 2024 | 16

FINANCIAL REVIEW APPENDIX

Adjusted Net Profit/Adjusted Net Profit per share

UMG's use of Adjusted net profit is appropriate as UMG uses it as the basis for
the Adjusted net profit per share (in EUR) – diluted, both of which are non-IFRS
measures. Adjusted net profit may be subject to limitations as an analytical
tool for investors, as it excludes certain items and therefore does not reflect
the expense associated with such items, which may be significant and have asignificant effect on UMG’s net profit. During 2024, UMG updated the definition of
Adjusted net profit to exclude restructuring expenses.
The accounting impact of the following items is excluded from Net profit
attributable to equity holders of the parent:
i. amortisation of catalogues;ii. impairment losses on goodwill and intangible assets;iii. financial income and expenses, excluding interest and income
from investments;
iv. restructuring expenses;
v. earnings from discontinued operations;vi. non-cash share-based compensation expense;vii. certain one-time items that are deemed by management to be significant
and incidental to normal business activity;
viii. income tax impact on the above adjustments;
ix. non-recurring tax items; andx. adjustments attributable to non-controlling interests.

Financial Net Debt

UMG considers Financial Net Debt, a non-IFRS measure, to be a relevant
indicator of its liquidity and capital resources. UMG management uses thisindicator for reporting, management and planning purposes. Financial Net Debt
is calculated as the sum of:i. cash and cash equivalents, as reported in the Consolidated Statement of
Financial Position, including (i) cash in banks and deposits, whether or notcompensated, corresponding to cash, and (ii) money market funds
ii. cash management financial assets, included in the Consolidated Statementof Financial Position under “financial assets”, relating to financial
investments, which do not satisfy the criteria for classification as cash
equivalents set forth in IAS 7
iii. derivative financial instruments, net (assets and liabilities) where theunderlying instruments are Financial Net Debt items, as well as cash
deposits securing borrowings included in the Consolidated Statement of
Financial Position under “financial assets”
less:i. the value of borrowings at amortised cost as reported in the Consolidated
Statement of Financial Position

MUSIC IS UNIVERSAL Half Year Results 2024 | 17

FINANCIAL REVIEW APPENDIXFree Cash Flow

UMG defines Free Cash Flow as net cash provided by/(used for) operating
activities plus net cash provided by/(used for) investing activities, lessrepayment of lease liabilities, interest paid, net and other cash items related
to financing activities. UMG considers Free Cash Flow, a non-IFRS measure, to bea relevant indicator of its cash flow generated to fund dividend payments andrepayment of debt. Free Cash Flow is not a measure of performance calculated
in accordance with IFRS and therefore it should not be considered in isolation of,or as a substitute for cash flow provided by operating activities as a measure ofliquidity. Free Cash Flow, as we calculate it, may not be comparable to similarly
titled measures employed by other companies. In addition, Free Cash Flowdoes not necessarily represent funds available for discretionary use and is notnecessarily a measure of our ability to fund our cash needs.

MUSIC IS UNIVERSAL Half Year Results 2024 | 18

UNAUDITED CONDENSEDCONSOLIDATED INTERIMFINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2024

FINANCIAL STATEMENTSCONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTSCONTENTS OF CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
Condensed Consolidated Interim Statement of Profit or Loss21

Condensed Consolidated Interim Statement of Financial Position

23

Condensed Consolidated Interim Statement of Comprehensive Income
Condensed Consolidated Interim Statement of Cash Flows

22
24

Condensed Consolidated Interim Statement of Changes in Equity

25

NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS

26

Note 1.

General information

Note 2.

Basis of preparation

26

Note 3.

Segment data

Note 4.

Acquisitions and divestments

Note 5.

Financial income and expenses

Note 6.

Income taxes

Note 7.

Content assets (catalogues and royalty advances) andother intangibles

Note 8.

26
27

Cash position and borrowings

Note 9.

Financial assets and liabilities

Note 10.

EquityNote 11.

Share-based compensation plans

Note 12.

Related parties

Note 13.

Subsequent events

30
31
31
31
32
33
35
35
36
37

MUSIC IS UNIVERSAL Half Year Results 2024 | 20

FINANCIAL STATEMENTSCONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS FOR THE SIX-MONTHS ENDED
JUNE 30, 2024

Condensed Consolidated InterimStatement of Profit or Loss
Six months ended June 30,(in millions of euros)

Revenues

Cost of revenues

Note

3

Selling, general and administrative expenses

Financial income

Financial expenses

55Income/(loss) from equity affiliates
Profit before income taxes
Income taxes
Net profit
Of which:

Net profit attributable to equity holders of the parent
Net profit attributable to non-controlling interests

Earnings per share (in euros)

Earnings for the period attributable to equity holders of the parent - basic

Earnings for the period attributable to equity holders of the parent - diluted

CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS

2023

(unaudited)(unaudited)

5,526(2,811)

(145)

(135)

756
596

(81)

515

(8)

6

5,148

(3,113)(1,512)

Amortisation and impairment losses on intangible assets
Operating profit

2024

1,263

(1,611)
591
339

(74)

265

(2)

854

(345)

(227)

914

625

0.50

0.34

918

4

0.49

627

2

0.34

MUSIC IS UNIVERSAL Half Year Results 2024 | 21

FINANCIAL STATEMENTS

Condensed Consolidated InterimStatement of Comprehensive Income
Six months ended June 30,(in millions of euros)

Net profit

Actuarial gains/(losses) related to employee defined benefit plans, net of tax

Financial assets at fair value through other comprehensive income, net of tax
Items not subsequently reclassified to profit or loss, net of tax

2024

2023

(unaudited)(unaudited)

918
-

(3)

(3)

627

-

(1)

(1)

Foreign currency translation adjustments

79

(134)

Net gain/(loss) on hedge of net investment

8

7

Other comprehensive income/(loss) from equity affiliates, net of tax
Items to be subsequently reclassified to profit or loss, net of tax

6

(3)

93

(130)

Total comprehensive income, net of tax

1,008

496

Total comprehensive income attributable to equity holders of the parent

1,004

Other comprehensive income/(loss), net of tax

Of which

Total comprehensive income attributable to non-controlling interests

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

90

4

(131)

494
2

MUSIC IS UNIVERSAL Half Year Results 2024 | 22

FINANCIAL STATEMENTS

Condensed Consolidated InterimStatement of Financial Position(in millions of euros)

Goodwill

Note

Non-current royalty advances

7

Other intangible assets

7

Catalogues

Property, plant and equipment

7

Right of use assets

Investments in equity affiliates
Non-current financial assets
Deferred tax assets

June 30,

December 31,

2024

2023

(unaudited)(audited)

1,722
1,854
3,052
203
191
461

9

Other non-current assets

595

2,300
570

6

Non-current assets

1,624
1,574
3,020
180
177
316
222

1,436
479
7

10,954

9,035

244

210

1,154

1,060

2,307

2,246

4,211

4,056

TOTAL ASSETS

15,165

13,091

Shareowners equity

3,429

2,962

Total equity

3,471

2,983

297

300

Inventories

Current tax receivables

Current royalty advances

Other current financial assets
Trade and other receivables
Cash and cash equivalents
Current assets

798

Non-controlling interests
Non-current provisions

Long-term borrowings and other financial liabilities
Deferred tax liabilities

Long-term lease liabilities

Other non-current liabilities
Non-current liabilities
Current provisions

Short-term borrowings and other financial liabilities
Trade and other payables

Short-term lease liabilities
Current tax payables

49
19

438

42

8

9

8

36
91

413

21

1,824

1,826

482

324

913
978

676
715

4,494

3,841

169

122

5,634

5,711

1,226
70

101

278
86
70

Current liabilities

7,200

6,267

Total liabilities

11,694

10,108TOTAL EQUITY AND LIABILITIES

15,165

13,091CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITIONMUSIC IS UNIVERSAL Half Year Results 2024 | 23

FINANCIAL STATEMENTS

Condensed Consolidated InterimStatement of Cash FlowsSix months ended June 30,(in millions of euros)

Note

Operating activities

2024

2023

(unaudited)(unaudited)

Operating profit

756

Royalty advances payments, net of recoupments(315)

Other changes in net working capital

(218)

(173)

Income tax paid

(199)

(208)

Catalogue investments

(96)

(89)

Capital expenditures

(28)

(22)

Adjustments

213

Gross cash provided by operating activities before income tax paid

654

Net cash provided by operating activities before income tax paid

436

Net cash provided by/(used for) operating activities

237

Investing activities

Other intangible assets investments(43)

Purchases of consolidated companies, after acquired cash

(111)

Purchase of financial assets(41)

Investments in equity affiliates(385)

Investments

591
380

(95)

876
703
495

(32)
(78)
(61)

(145)

(704)

(427)

-

1

Divestitures78

1

Dividends received from investments

3

Proceeds from sales of property, plant, equipment and intangible assets

1

Proceeds from sales of consolidated companies, after divested cash
Proceeds from sale of financial assets

77

Dividends received from equity affiliates

8

Net cash provided by/(used for) investing activities
Financing activities

Distributions to shareowners

Dividends paid by consolidated companies to their non-controlling interests

10

Transactions with shareowners
Proceeds from borrowings

(453)

(458)

(454)

(3)

6

Transactions on borrowings and other financial liabilities

926

Payment of interest of lease liabilities(10)

Repayment of lease liabilities(43)

Net cash provided by/(used for) financing activities

415

Net change in cash and cash equivalents

Foreign currency translation adjustments
Change in cash and cash equivalents
Cash and cash equivalents

37

8

-

(455)

(35)

Other cash items related to financing activities

3

(423)

(1,371)

Interest, net

-

(615)

2,326

Repayments of borrowings

-

(1)

4,776

(4,260)
(38)
-

478

(40)
(7)

(23)
49

(10)

(27)

387

438

27

22

At beginning of the period

8

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWSMUSIC IS UNIVERSAL Half Year Results 2024 | 24

At end of the period

8

414

460

FINANCIAL STATEMENTS

Condensed Consolidated InterimStatement of Changes in Equity
Six months ended June 30, 2024 (unaudited)
NumberNote(in millions of euros)of shares

Share

(in

capitalAdditional
paidin capital

thousands)

BALANCE AS OF DECEMBER 31, 2023

Treasury

Retained

Shareowners

sharesearnings

equityNonControllinginterest

Total
equity1,821,665

18,217

14,994(5)(30,244)

2,962

21

2,983

Net profit

-

-

-

-

914

914

4

918

Other comprehensive income, net of tax

-

-

-

-

90

90

-

90

TOTAL COMPREHENSIVE INCOME

-

-

-

-

1,004

1,004

4

1,008

-

-

-

-

(494)

(494)

(3)

(497)

Dividends paid and payable by UMG N.V.

10

Share-based compensation plans

7,594

76

47

-

(146)

(23)

-

(23)

NCI on acquired business

-

-

-

-

-

-

20

20

Recognition of put option liability on NCI

-

-

-

-

(20)

(20)

-

(20)

7,594

76

47

-

(660)

(537)

17

(520)

1,829,259

18,293

15,041(5)(29,900)

3,429

42

3,471

TOTAL CHANGES OVER THE PERIODBALANCE AS OF JUNE 30, 2024

Six months ended June 30, 2023 (unaudited)
NumberNote(in millions of euros)
BALANCE AS OF DECEMBER 31, 2022of shares

Share

(in

capitalAdditional
paidin capital

thousands)

Treasury

Retained

Shareowners

sharesearnings

equity1,813,513

18,135

14,935(5)Net profit

-

-

-

-

Other comprehensive income, net of tax

-

-

-

-

TOTAL COMPREHENSIVE INCOME

-

-

-

-

Dividends paid and payable by UMG N.V.
Share-based compensation plans
Recognition of put option liability on NCI
TOTAL CHANGES OVER THE PERIODBALANCE AS OF JUNE 30, 2023

(30,714)

NonControllinginterest

Total
equity

2,351

1

2,352

625

625

2

627

(131)

(131)

-

(131)

494

494

2

496

-

-

-

-

(492)

(492)

(1)

(493)

7,225

72

59

-

88

219

-

219

-

-

-

-

(15)

(15)

-

(15)

7,225

72

59

-

(419)

(288)

(1)

(289)

1,820,738

18,207

14,994(5)(30,639)

2,557

2

2,559

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITYMUSIC IS UNIVERSAL Half Year Results 2024 | 25

FINANCIAL STATEMENTS

Notes to the Condensed Consolidated
Interim Financial Statements
Note 1. General information
Universal Music Group N.V. is a public company with limited liability incorporated under the laws of the Netherlands andlisted on Euronext Amsterdam under the symbol ‘UMG’. As used herein, the term UMG ("the Group") is used for Universal
Music Group N.V. (‘the Company’) and its subsidiaries within the meaning of Section 2:24b of the Dutch Civil Code. UMG’s
statutory seat is located in Amsterdam and its principal office is located at:‘s-Gravelandseweg 80,
1217 EW Hilversum
The Netherlands

Note 2. Basis of preparation
The Unaudited condensed consolidated interim financial statements ("Condensed consolidated interim financial
statements") are presented in millions of euros, unless stated otherwise. The presentation currency of UMG is the euro.

2.1. Statement of compliance
These Condensed consolidated interim financial statements are in compliance with IAS 34 'Interim Financial Reporting'and do not include all the information and disclosures required in the annual financial statements, and should beread in conjunction with UMG's annual consolidated financial statements for the year ended December 31, 2023. These
Condensed consolidated interim financial statements were prepared by the UMG Board of Management and authorized
for issue on July 23, 2024.
The accounting policies adopted in the preparation of the Condensed consolidated interim financial statements are
consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year
ended 31 December 2023, except for the adoption of new or amended standards and interpretations effective for annual
periods beginning on or after January 1, 2024. None of these new or amended standards or interpretations had a material
impact on adoption.
On April 9, 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1
Presentation of Financial Statements. IFRS 18 introduces new requirements on presentation within the statement of profit
or loss, including specified subtotals. It also requires disclosure of management-defined performance measures andincludes enhanced requirements for aggregation and disaggregation of financial information in the primary financial
statements and the notes. The IASB also issued narrow scope amendments to IAS 7 Statement of Cash Flows, andsome requirements previously included within IAS 1 have been moved to IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors, which has been renamed IAS 8 Basis of Preparation of Financial Statements. Other
minor amendments were made to other standards. IFRS 18 and the other amendments are effective for reporting periods
beginning on or after January 1, 2027 and may be adopted early, subject to EU endorsement. UMG is currently assessing
the impact that IFRS 18 and the other amendments will have on UMG’s consolidated financial statements.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

MUSIC IS UNIVERSAL Half Year Results 2024 | 26

FINANCIAL STATEMENTS

2.2. Criticial accounting judgements and key sources of estimation uncertainty
The preparation of the Condensed consolidated interim financial statements requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from the estimates. The significant judgments and estimates
are consistent with those disclosed in UMG's annual consolidated financial statements for the year ended December
31, 2023.
The income tax expense is recognised based on management's estimate of the weighted average effective annual
income tax rate expected for the full year. The accounting policies applied in the Condensed consolidated interim
financial statements are consistent with those applied in UMG's annual consolidated financial statements for the year
ended December 31, 2023.

Note 3. Segment data
Operating segment data

The following tables present financial information for UMG’s operating segments. Corporate centre represents amounts
not allocated to the operating segments and includes certain costs related to central activities as well as group enabling
functions. Inter-segment pricing is determined on an arm's length basis. Segment results, assets and liabilities include
items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Segment EBITDA and Adjusted EBITDA are included in these disclosures because they are primary measures of profit orloss used by UMG Management to assess each segment's performance and make decisions about allocating resources.
EBITDA and Adjusted EBITDA are non-IFRS measures defined in the Appendix of the 2024 Interim Financial Review.

Main aggregates of the Statement of profit or loss

Recorded(in millions of euros)

Six months ended June 30, 2024
External revenue

Intercompany revenue
Revenues

Music

Music

Merchandising

Publishingand other

4,189

1,000

337

1

8

4

Corporate
centreElimination ofintersegment
transactions

-

Total

-

5,526

(13)

-

Adjusted EBITDA

1,065

4,190

1,008

341
18

(84)

-

(13)

5,526

Non-cash share-based
compensation expense

(106)

(12)

-

(53)

-

(171)

EBITDA

959

229

18

(137)

-

1,069

Amortisation and depreciation expense

(116)

(80)

(1)

(3)

-

(200)

-

-

-

-

-

-

Restructuring expenses

Gain/(loss) on sale of assets
Operating profit/(loss)
Financial income

(95)

748

Financial expenses

Income/(loss) from equity affiliates
Profit before income taxes

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

241

(3)

146

(1)

(14)

16

(154)

-

-

1,240

(113)
756
596

(81)
(8)

1,263

MUSIC IS UNIVERSAL Half Year Results 2024 | 27

FINANCIAL STATEMENTS

Recorded(in millions of euros)

Six months ended June 30, 2023

Music

Music

Merchandising

Publishingand other

Corporate
centre

4,003

882

263

-

Revenues

4,003

889

264

Non-cash share-based
compensation expense(271)

EBITDA

Amortisation and depreciation expense

Adjusted EBITDA

Restructuring expenses

Gain/(loss) on sale of assets
Operating profit/(loss)
Financial income

intersegment
transactions

External revenue

Intercompany revenue

Elimination of

Total

-

5,148

20

-

(93)

(8)
-

5,148

1,112

(30)

(3)

(41)

-

(345)

698

186

17

(134)

-

767

(105)

(78)

(1)

(3)

-

(187)

26

-

-

969

(14)
-

579

7

216

(1)
-

107

1

-

16

-

(8)

-

-

-

(111)

(15)
26

-

591
339

Financial expenses(74)

Income/(loss) from equity affiliates(2)

Profit before income taxes

854

Disaggregated revenue information
Recorded MusicSix months ended June 30,(in millions of euros)

2024

Streaming revenue

2023

685

Subscription revenue

Downloads and other digital revenue

673

2,260

2,082

612

639

94

Physical revenue

License and other revenue

116

539

Recorded Music revenue

493

4,190

4,003

Music Publishing
Six months ended June 30,(in millions of euros)

2024

2023

Performance revenue

214

187

Digital revenue

595

495

Synchronisation revenue
Mechanical revenue
Other revenue

Music Publishing revenue

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

124
51
24

1,008

129
52
26

889

MUSIC IS UNIVERSAL Half Year Results 2024 | 28

FINANCIAL STATEMENTS

Subscriptions and streaming represents the largest type of recorded music revenue and is recognised over time and is
53% (54% in HY 2023) of total UMG revenues. Physical recorded music revenues are recognised at a point in time andrepresent 11% (12% in HY 2023) of total UMG revenues.
Other Recorded Music revenues mostly include neighbouring rights income which are recognized over time.
Merchandising revenue is recognised at a point in time. Music Publishing revenue is mostly recognised over time.

Segment assets
Segment assets by Segment

Segment assets that are reported to the executive board include items that are directly attributable to a segment aswell as those that can be allocated on a reasonable basis. Unallocated assets mainly comprise of cash and deferred tax
assets which are managed at the Group level.

(in millions of euros)

As of June 30, 2024
Goodwill

Royalty advances, non-current
Catalogues

Property, plant & equipment
Other intangible assets

Right of use relating to leases
Royalty advances, current
Other assets

Total segment assets
Unallocated assets

Recorded

Music

Music

Merchandising

Publishingand other

Corporate

Total

centre

860

760

102

-

1,722

1,405

1,647

-

-

3,052

50

36

642

448

8,606

4,330

1,045
177
456
3,971

581

4
4

850

228
-

10

191

-

117

64

-

1,154

673

14,108

-

105

499

1

545

Total assets

As of December 31, 2023

1,854

203
461

5,471
1,057

15,165

Goodwill

779

745

100

-

1,624

Catalogues

1,335

1,685

-

-

3,020

50

31

520

481

59

7,192

4,211

417

Royalty advances, non-current
Property, plant & equipment
Other intangible assets

Right of use relating to leases
Royalty advances, current
Other assets

Total segment assets
Unallocated assets

862
165
310

3,171

Total assets

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

508

4
4

753

204
-

54

8

99
2

1,574
177
180
316

-

1,060

343

12,163

234

4,212
928

13,091

MUSIC IS UNIVERSAL Half Year Results 2024 | 29

FINANCIAL STATEMENTS

Content assets by segment
June 30, 2024
(in millions of euros)

Note

Recorded

Catalogues (of music and publishing rights)

Royalty advances (to artists and repertoire owners)

Non-current
Content assets, net

Current content assets

Publishing

1,029

292

-

3,052

1,045

581

228

1,854

3,092

2,676

292

6,060

2,450

2,228

228

642

Non-current content assets

Total

and other

1,647

642

7

Merchandising

1,405
1,687

Of which:
Current

Music

Music

448

3,008

64

448

1,154

64

1,154
4,906

December 31, 2023
(in millions of euros)

Note

Catalogues (of music and publishing rights)

Royalty advances (to artists and repertoire owners)

Non-current
Content assets, net

Current content assets

Music

Music

Publishing7

Non-current content assets

Merchandising

Total

and other

1,335

1,685
989

263

-

3,020

862

508

204

1,574

2,717

2,674

263

5,654

2,197

2,193

204

4,594

1,382

Of which:
Current

Recorded

520
520

481
481

59
59

2,634

1,060
1,060

Note 4. Acquisitions and divestments
During the half year 2024, UMG completed investments in Chord Music Partners ("Chord"), NTWRK and Mavin Global("Mavin"). Total cash used for these investments was €476 million. UMG accounts for its investments in Chord and NTWRK
as associates using the equity method while the investment in Mavin was recognised as a business combination. The
NTWRK and Chord transactions closed in March 2024 and the Mavin transaction closed in May 2024.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

MUSIC IS UNIVERSAL Half Year Results 2024 | 30

FINANCIAL STATEMENTS

Note 5. Financial income and expenses
Six months ended June 30,(in millions of euros)

2024

Interest income from cash, cash equivalents and other

2023

9

Change in fair value of financial instruments through profit or loss
Gain on derivative instruments at fair value through profit or loss

7

569

327

2

3

13

Foreign exchange gain

Income from investments

2

3

Financial income

Interest expense on borrowings

-

596

339

(3)

(14)

(50)

Change in fair value of financial instruments through profit or loss
Unwinding of interest component

(41)

(1)

Interest cost related to employee benefit plans

(1)

(4)

Interest expenses on lease liabilities

(3)

(10)

Loss on derivative instruments at fair value through profit or loss

(7)

(10)

Cost of finance-(3)

Financial expenses(81)

Net total financial income and (expenses)

515

(8)

(74)

265

Note 6. Income taxes
The income tax expense in the first six months of 2024 increased by €118 million to an income tax expense of€345 million from an income tax expense of €227 million in the corresponding period of the previous year. The increased
expense is caused by a mix of higher revaluation gains through profit or loss of the interests in Spotify and other equity
holdings and increased operating profit. UMG has determined that the impact for Pillar Two in the first six months of 2024
is not material.

Note 7. Content assets (catalogues and royalty advances) and otherintangibles
Net book value
June 30, 2024

(in millions of euros)

Asset value, grossAccumulated

amortisation andimpairment losses

Net book value

Catalogues (of music and publishing rights)

6,052(3,000)

3,052

Content assets

9,060(3,000)6,060

Royalty advances (to artists and repertoire owners)
Other intangible assets

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

3,008
618

-

(415)

3,008
203

MUSIC IS UNIVERSAL Half Year Results 2024 | 31

FINANCIAL STATEMENTS

December 31, 2023
Asset value, gross(in millions of euros)

Accumulated

Net book value

amortisation andimpairment losses

Catalogues (of music and publishing rights)

5,845(2,825)

3,020

Content assets

8,479(2,825)

5,654Royalty advances (to artists and repertoire owners)

2,634

Other intangible assets

-

585

2,634

(405)

180

Note 8. Cash position and borrowings
Cash position(in millions of euros)

June 30, 2024

December 31, 2023

Cash and cash equivalents

438

413

Cash and cash equivalents in the statement of cash flows

414

387

Bank overdrafts

(24)

(26)

Borrowings and other financial liabilities
June 30, 2024
(in millions of euros)

Bonds

Commercial papers
Bank overdrafts
Other

Total

December 31, 2023

Long-term

Short-term

1,808

1,773

24

-

1,142

Total

Long-term

Short-term

35

1,808

1,774

24

26

-

-

1,142
25

197

34

-

197

73

52

21

26

Borrowings at
amortised cost

76

51

3,050

1,824

1,226

2,104

1,826

278

Cash and cash equivalents

(438)

-

(438)

(413)

-

(413)

Net debt

2,612

Derivative financial assets--

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

-

(2)

1,689

-

(2)

MUSIC IS UNIVERSAL Half Year Results 2024 | 32

FINANCIAL STATEMENTS

Note 9. Financial assets and liabilities
The following table shows the carrying amounts and fair values of financial assets and liabilities according to their fairvalue hierarchy. Based on the nature, maturity or the magnitude of the amounts, UMG considers that the fair valueof trade and other receivables, short-term deposits, loans receivable, borrowings, trade and other payables are notmaterially different from their carrying value.
Fair value hierarchy is based on the transparency of the inputs used and is as follows:•
Level 1: fair value measurement based on quoted prices in active markets for identical assets or liabilities;
Level 2: fair value measurement based on observable market data (other than quoted prices included under Level 1),•
being for example, price on the last transactions on over-the-counter (OTC) markets; andLevel 3: fair value measurement based on valuation techniques using inputs for the asset or liability that are not•based on observable market data.
June 30, 2024
Fair value(in millions of euros)

Carrying

Level 1amountFinancial assets at fair value through profit and loss
Listed equity securities
Other financial assets

Trade and other receivables

Financial assets at fair value through othercomprehensive income

Level 2

2,066

2,066

-

-

75

Level 3

-

-

-

53

22

-

-

Unlisted equity securities

19

-

-

19

Trade and other receivables

2,307

-

-

-

Total financial assets

4,626

2,066

53

41

(4)

(4)

-

(53)

Trade and other payables(5,630)---Borrowings, excluding bank overdrafts and bonds(1,218)---Financial assets at amortised cost
Other financial assets

Financial liabilities at fair value through profit and loss
Trade and other payables

Other non-current liabilities

Financial liabilities at amortised cost
Bonds

Other non-current liabilities
Total financial liabilities

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

159

(58)

-

(5)

(1,808)(1,768)(920)-(9,638)(1,777)

-

-

-

-

-

(53)

MUSIC IS UNIVERSAL Half Year Results 2024 | 33

FINANCIAL STATEMENTS

December 31, 2023
Fair value
Carrying(in millions of euros)

Level 1amountFinancial assets at fair value through profit and loss
Listed equity securities
Other financial assets

Level 2

1,227

1,227

-

-

75

Trade and other receivables

Financial assets at fair value through othercomprehensive income

Level 3

-

-

-

55

20

-

-

Unlisted equity securities

20

-

-

20

Trade and other receivables

2,246

-

-

-

Total financial assets

3,773

1,227

55

40

(4)

(4)

-

(30)

(5,707)

-

-

-

-

-

-

Financial assets at amortised cost
Other financial assets

205

Financial liabilities at fair value through profit and loss
Trade and other payables

Other non-current liabilities

-

(35)

Financial liabilities at amortised cost
Trade and other payables
Bonds

Borrowings, excluding bank overdrafts and bonds(5)(1,808)(1,808)

(680)

-

(270)

Other non-current liabilities
Total financial liabilities-(8,504)

-

-

-

-

-

(1,817)

-

-

(30)

Listed equity portfolio
June 30, 2024
Numberof shares
held

Ownership
interest(inTencent
Music Entertainment

purchaseprice1,2

Stockmarketprice(€/share)thousands)

Spotify

Average

Carrying

ChangeCumulative

overcapitalin valuevalue

the period

unrealized

gain/(loss)3

Sensitivity

at +/- 10 pts(in millions of euros)

6,487

3.21%

6.58

292.05

1,895

783

1,852

+190/-190

12,246

0.79%

na

13.08

160

59

160

+16/-16

11

(3)

11

Other
Total

2,066

839

2,023

1 Includes acquisition fees and taxes.
2 na: not applicable.
3 Includes net revaluation gains, net of liabilities, of €566 million in HY 2024 (net revaluation gains, net of liabilites, of €313 million in HY 2023) as recognised in Note 5.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

MUSIC IS UNIVERSAL Half Year Results 2024 | 34

FINANCIAL STATEMENTS

December 31, 2023
Numberof shares
held

Ownership
interest(inTencent
Music Entertainment

purchaseprice1,2

Stockmarketprice(€/share)thousands)

Spotify

Average

Carrying

ChangeCumulative

overcapitalin valuevalue

unrealized

the period

gain/(loss)

Sensitivity

at +/- 10 pts(in millions of euros)

6,487

3.27%

6.58

171.36

1,112

629

1,069

+111/-111

12,246

0.78%

na

8.22

101

5

101

+10/-10

14

(4)

14

Other
Total

1,227

630

1,184

1 Includes acquisition fees and taxes.
2 na: not applicable.

Note 10. Equity
Dividend Distribution
In May 2024 the proposal submitted to the 2024 Annual General Meeting of Shareholders to pay a cash dividend of €0.27
per ordinary share was approved. This corresponded to a total distribution of €494 million which is included within theCondensed Consolidated Interim Statement of Changes in Equity. The dividend was paid in June 2024 to shareholders,
except for withholding tax which was settled in July 2024.

Note 11. Share-based compensation plans
As detailed in UMG's 2023 Annual Report, UMG granted to senior executives and a number of senior management certain
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) as well as Stock Options (SOs) to one senior executive
under the UMG Global Equity Plan. During the first half of 2024, UMG granted further RSUs to certain non-executive
board directors and a senior executive. UMG also granted annual PSUs to a number of senior executives and senior
management during this period. The total expense reflected in the first half of 2024 for all granted RSUs was €122 million(HY 2023: €305 million) and for all granted PSUs was €32 million (HY 2023: €16 million).
During the first half of 2024, 610 thousand SOs were granted to a senior executive with expected vesting periods between
1.9 and 4.0 years and a grant date fair value of €7.60 per option. The total expense reflected in the period for all options
was €7 million (HY 2023: €3 million).
The total equity reserve at 30 June 2024 for all granted awards was €249 million (HY 2023: €196 million).

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

MUSIC IS UNIVERSAL Half Year Results 2024 | 35

FINANCIAL STATEMENTS

Note 12. Related parties
Related-party transactions

UMG's related parties include:•companies fully consolidated by UMG. The transactions between these companies have been eliminated for the
preparation of UMG’s Condensed consolidated interim financial statements;•
companies over which UMG exercises a significant influence or has joint control;•
all companies that are controlled or jointly controlled by Corporate Executives or their close relatives; and•all companies that have a significant influence over UMG.
As of June 30, 2024, transactions with Vivendi qualify as transactions with related parties under IAS 24.
UMG distributes its cash surpluses to shareowners through dividends (please refer to Note 10 Equity). Vivendi and UMG
had previously entered into a transition and services agreement in connection with the separation, the terms of which
Vivendi and its subsidiaries will provide to UMG, and UMG will provide to Vivendi and its subsidiaries, on an interim,various transitional basis services as applicable, including but not limited to: (i) a limited selection of treasury related
services and applications; (ii) a limited selection of accounting services and accounting software related services andapplications; (iii) taxation related services; and (iv) certain employee related principles in connection with the direct
listing on the Euronext Amsterdam. This transition and services agreement ceased in the first half of 2023.
The balances and transactions with the parties described above are summarised in the table below:
June 30, 2024
(in millions of euros)

Associates

Shareholders

Other

Total

Statement of Financial Position
AssetsTrade accounts receivable

Loans and other receivables

72

2

-

32

-

-

106

Other financial assets

-

74

-

106
32

Six months ended June 30, 2024
(in millions of euros)

Associates

Statement of Profit or Loss
Revenue

Cost of revenues

Shareholders

Other financial income

Total

123

5

-

128

(2)

(1)

-

(3)

-

Selling, general and administrative expenses

Other

3

-

-

-

-

-

3

December 31, 2023
(in millions of euros)

Associates

Shareholders

Other

Total

Statement of Financial Position
AssetsTrade accounts receivable
Loans receivable

Other financial assets

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

52

4

1

-

-

-

105

-

-

57

105
-

MUSIC IS UNIVERSAL Half Year Results 2024 | 36

FINANCIAL STATEMENTS

Six months ended June 30, 2023
(in millions of euros)

Associates

Statement of Profit or Loss
Revenue

Cost of revenues

Selling, general and administrative expenses
Other financial income

Shareholders

Other

Total

123

2

-

125

(2)

(1)

-

(3)

-

-

-

-

Note 13. Subsequent events
There have been no material subsequent events.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

MUSIC IS UNIVERSAL Half Year Results 2024 | 37