02
28

UNIVERSALMUSIC GROUPFOURTH QUARTER &FULL YEAR 2023 RESULTSIMPORTANT INFORMATIONFORWARD-LOOKING STATEMENTS
THIS PRESENTATION MAY CONTAIN STATEMENTS THAT CONSTITUTE FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS
OF UNIVERSAL MUSIC GROUP N.V. (THE “COMPANY” OR “UMG”) AND THE INDUSTRY IN WHICH THE COMPANY OPERATES. SUCH FORWARD-LOOKING STATEMENTS MAY BE
IDENTIFIED BY THE USE OF WORDS SUCH AS "EXPECTATION", "BELIEF", "ESTIMATE", "PLAN", "TARGET", OR "FORECAST" AND SIMILAR EXPRESSIONS OR THE NEGATIVETHEREOF; OR BY THE FORWARD-LOOKING NATURE OF DISCUSSIONS OF STRATEGY, PLANS OR INTENTIONS; OR BY THEIR CONTEXT. ALTHOUGH UMG BELIEVES THAT SUCHFORWARD-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 AND UNCERTAINTIES, 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 THAT ARE DESCRIBED IN THE 2022 ANNUAL REPORT AND WILL BE DESCRIBED IN THE 2023 ANNUAL REPORT. ACCORDINGLY, UMG CAUTIONS READERS AGAINSTPLACING UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS PRESENTATION. 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.

PRESENTATION
THE FINANCIAL INFORMATION INCLUDED IN THIS PRESENTATION IS UNAUDITED. THE 2023 FINANCIAL INFORMATION INCLUDED IN THIS PRESENTATION CONTAINS ONLY PART OF
THE 2023 FINANCIAL STATEMENTS WHICH WILL BE INCLUDED IN THE 2023 ANNUAL REPORT AND STILL HAVE TO BE ADOPTED BY THE SHAREHOLDERS AT THE UPCOMING
ANNUAL GENERAL MEETING OF SHAREHOLDERS. THE 2023 ANNUAL REPORT HAS NOT YET BEEN PUBLISHED AND AN AUDITORS’ OPINION HAS NOT YET BEEN ISSUED.

NON-IFRS MEASURES
THIS PRESENTATION INCLUDES CERTAIN ALTERNATIVE PERFORMANCE MEASURES WHICH ARE NOT DEFINED IN IFRS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDSBOARD AS ENDORSED BY THE EU. FOR FURTHER INFORMATION ON NON-IFRS MEASURES USED BY THE COMPANY, SEE THE RELEVANT DEFINITIONS INCLUDED IN THE PRESSRELEASES OF THE SAME DATE AS THIS PRESENTATION AND THE RECONCILIATIONS OF SUCH NON-IFRS MEASURES INCLUDED IN THE APPENDICES 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 MARKETRESEARCH, PUBLICLY AVAILABLE INFORMATION AND INDUSTRY PUBLICATIONS.

SIR LUCIAN GRAINGECHAIRMAN & CEO
UNIVERSAL MUSIC GROUP

3

FY2023 CONSOLIDATED RESULTS€ 10,340

2022

REVENUE

ADJUSTED EBITDA+11.1% +12.4%*+14.6% +18.5%*€ 11,108€ 2,369€ 2,135

2023

2022

2023

*Excludes the CRB Phonorecords III Accrual and the Legal Provision from 2023; Excludes the Change in Society Accounting and the Legal Settlement from 2022. See Items Impacting Comparability of Results in our earnings press
release for more information.
Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency

49 OF THE TOP 10
GLOBAL RECORDING ARTISTS OF 2023

SOURCE: IFPI1TAYLOR SWIFT*6

MORGAN WALLEN

2

SEVENTEEN7TOMORROW X TOGETHER

3STRAY KIDS

8NEWJEANS

4DRAKE*

9

BAD BUNNY*

5

THE WEEKND*

10LANA DEL REY*
*Universal Music Publishing Group Songwriter5

2023 GLOBAL ARTIST SUCCESSSPOTIFY

APPLE MUSICYOUTUBE6 OF THE TOP 10

13 OF THE TOP 20

3 OF THE TOP 5

GLOBAL ARTISTS#1

TAYLOR SWIFT
THE WEEKND
DRAKE
FEID
KAROL GLANA DEL REY

GLOBAL SONGS#1GLOBAL SONGSMORGAN WALLEN.
“Last Night”

DRAKE & 21 SAVAGE “Rich Flex”
TAYLOR SWIFT “Anti-Hero”
METRO BOOMIN, THE WEEKND & 21 SAVAGE “Creepin’”
DRAKE & 21 SAVAGE “Spin Bout U”
REMA, SELENA GOMEZ “Calm Down”
LIL BABY “Freestyle”
TAYLOR SWIFT “Cruel Summer”
SAM SMITH, KIM PETRAS “Unholy’”
ESLABON ARMADO, PESO PLUMA “Ella Baila Sola”
NEWJEANS “Ditto”
FUTURE FT. DRAKE, TEMS “WAIT FOR U”
MORGAN WALLEN “You Proof”#1

TOOSII“Favorite Song”

ESLABON ARMADO, PESO PLUMA“Ella Abila Sola”

MORGAN WALLEN“Last Night”

SOURCE: SPOTIFY, APPLE MUSIC, YOUTUBE

6

2023 U.S. ARTIST & SONGWRITERS SUCCESSSPOTIFY

THE

TOP 4

ARTISTS IN THE U.S.

BILLBOARD

5 OF THE TOP 7

6 OF THE TOP 10

SONGS IN THE U.S.

#1
#1

APPLE MUSICMORGAN WALLEN “Last Night”

TAYLOR SWIFTDRAKE & 21 SAVAGE “Rich Flex”

DRAKE

DRAKE & 21 SAVAGE “Spin Bout U”

MORGAN WALLEN

LIL BABY “Freestyle”

THE WEEKNDMORGAN WALLEN “You Proof”

ALBUMS ON THE U.S. BILLBOARD 200
YEAR-END CHART
MORGAN WALLEN One Thing At A TimeTAYLOR SWIFT Midnights
DRAKE & 21 SAVAGE Her Loss
METROBOOMIN Heroes & Villains
MORGAN WALLEN Dangerous: The Double AlbumTAYLOR SWIFT Lover#1

3 OF THE TOP 5

SONGWRITERS ON THE
U.S. HOT 100 SONGWRITERS CHARTTAYLOR SWIFT • JACK ANTONOFF • SZA

SOURCE: SPOTIFY, APPLE MUSIC, BILLBOARD

7

2023 SUCCESS IN INDUSTRY’S TOP MUSIC MARKETSUNITED KINGDOMJAPANGERMANY

7 OF THE TOP 10

5 OF THE TOP 10

6 OF THE TOP 10

ALBUMSARTISTSINCLUDING

3 OF THE TOP 5#1KING & PRINCE Mr. 5
SEVENTEEN FMLSEVENTEEN ALWAYS YOURSSEVENTEENSEVENTEENTH HEAVENTOMORROW X TOGETHER SWEET#1TAYLOR SWIFTDRAKETHE WEEKND

ALBUMS#1

THE ROLLING STONES
Hackney Diamonds

METALLICA
72 SeasonsTAYLOR SWIFT

1989 (Taylor’s Version)

16 WEEKS AT NO. 1
ON BILLBOARD JAPAN’SWEEKLY STREAMING CHART

ADO“Show”HERBERT GRÖNEMEYER
Das ist Ios

TAYLOR SWIFT
Midnights

KONTRA K

Die Hoffnung klaut mir niemand

SOURCE: OCC, GFK, BILLBOARD

8

SIR LUCIAN GRAINGECHAIRMAN & CEO
UNIVERSAL MUSIC GROUP

9

ARTIST-CENTRIC MODELBETTER VALUESARTISTRY AND THE
ARTIST / FAN
RELATIONSHIPGREATERALIGNMENTBETWEEN ARTISTS
AND PLATFORMS

ENHANCED USER
EXPERIENCES,
ACCELERATEDGROWTH, BETTERSUBSCRIPTIONECONOMICS

PREMIUM TIERSAND PRODUCTS
FOR SUPERFANS
AND HIGH-VALUECUSTOMERS

10RESPONSIBLE AI INTIATIVECENTER THE CONVERSATIONON ARTISTS

DEFEND THEIR INTERESTSAND OUR RIGHTSADVANCE ARTIST-CENTRICAPPROACHES TO DEPLOY AITOOLS AND PRODUCTS IN
INNOVATIVE WAYS
LEAD INDUSTRY ADVOCACY
AND CROSS-INDUSTRYCOALITIONSFORGE NEW COMMERCIAL AND
CREATIVE OPPORTUNITIES

11

EXPANDING OUR GLOBAL PRESENCE
CHINA

JAY CHOU

SOUTH ASIA

INDIA

EASON CHAN

AFRICA

12

CHORD MUSIC PARTNERS

THE WEEKENDKID CUDILORDE

JOHN LEGENDDAVID GUETTADIPLORYAN TEDDERELLIE GOULDING

13

SIR LUCIAN GRAINGECHAIRMAN & CEO
UNIVERSAL MUSIC GROUP

14

REDESIGNING OUR GLOBAL ORGANIZATIONEMPOWERS LABELS WITH NEW CAPABILITIES AND ADDITIONAL AGILITYPROVIDES LABELS WITH ENHANCED ACCESS TO HIGHEST-PERFORMING
INTERNAL TEAMS AND RESOURCESACHIEVES EFFICIENCIES IN TARGETED COST AREAS WHILE PROVIDINGLABELS WITH CAPABILITIES TO DEEPEN ARTIST AND FAN CONNECTIONSVIA NEW EXPERIENTIAL, COMMERCE, AND CONTENT OFFERINGSPRESERVES UNIQUE LABEL BRANDS AND ENTREPRENEURIAL CULTURES

15

SIR LUCIAN GRAINGECHAIRMAN & CEO
UNIVERSAL MUSIC GROUP

16

BOYD MUIREVP, CFO & PRESIDENT OF OPERATIONSUNIVERSAL MUSIC GROUP

17

FY2023 CONSOLIDATED RESULTS
REVENUE

ADJUSTED EBITDA

ADJUSTED EBITDA
MARGIN

ADJUSTED EPS DILUTED+11.1% +12.4%*+14.6% +18.5%*+0.7pp +1.2pp*+8.7%€ 10,340

2022€ 11,108€ 2,135

2023

2022

€ 2,369

2023

20.6%

2022

21.3%
€ 0.802023

2022€ 0.872023*Excludes the CRB Phonorecords III Accrual and the Legal Provision from 2023; Excludes the Change in Society Accounting and the Legal Settlement from 2022. See Items Impacting Comparability of Results in our earnings press release for more information
Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency, Adjusted EBITDA margin change in percentage points
18

HEALTHY GROWTH & CASH FLOW GENERATION
SINCE LISTINGSUSTAINED GROWTH IN REVENUE &ADJUSTED EBITDA

STRONG FREE CASH FLOW GENERATION

Revenue
Adjusted EBITDA

FCF before investing activities
Free Cash Flow

€ 11,108€ 1,606€ 10,340€ 8,504€ 1,029€ 7,432€ 1,704€ 1,086€ 1,082

2022

2023

€ 817
€ 638

€ 1,497€ 2,135€ 1,788€ 2,369-€ 158

2020

2021

2022

2023

2020

2021

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

4Q23 CONSOLIDATED RESULTS
REVENUE

ADJUSTED EBITDA

ADJUSTED EBITDA
MARGIN+15.6%+15.1% +17.7%*+0.0pp +0.5pp*€ 2,942

4Q22€ 3,208

4Q23

€ 620

4Q22

€ 677

21.1%

21.1%

4Q23

4Q22

4Q23

*Excludes the Legal Provision from 2023; See Items Impacting Comparability of Results in our earnings press release for more information
Note: € in Millions; Revenue and Adjusted EBITDA growth in constant currency
20

RECORDED MUSIC
4Q REVENUE

FULL YEAR
REVENUE

FULL YEAR
ADJUSTED EBITDA

FULL YEAR ADJ.
EBITDA MARGIN+14.7%+10.2% +11.2%*+11.0% +14.8%*+0.2pp +0.8pp*€ 2,235

4Q22€ 2,421

4Q23€ 7,9372022€ 8,461€ 1,900

2023

2022

€ 2,042

2023

23.9%

24.1%

2022

2023

*Excludes the Legal Provision from 2023; Excludes the Legal Settlement from 2022. See Items Impacting Comparability of Results in our earnings press release for more information
Note: € in Millions; All growth rates are in constant currency
21

RECORDED MUSIC REVENUE
2023 REVENUE BREAKDOWN

4Q23 REVENUE BREAKDOWN
4Q22+15.0%

+5.6%

FY22

4Q23

-45.8%+17.0%+34.0%+12.8%+3.6%-35.7%+19.4%+13.6%€ 4,275€ 1,137

€ 447

€ 395

€ 410

€ 1,425

Streaming

Downloads &Other Digital€ 1,380€ 1,174

€ 207

€ 32
Subscription

FY23

PhysicalLicense & Other

Subscription

Streaming

Downloads &Other Digital

PhysicalLicense & Other

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

RECORDED MUSIC REVENUETOP SELLERS
2023

FY2023 RECORDED MUSIC REGIONAL
BREAKDOWN
Morgan Wallen

Taylor Swift

Taylor Swift

Midnights

1989(Taylor’s Version)

Mr. 5

King & Prince

Taylor Swift

Karol G

The Weeknd

EuropeKing & Prince

Taylor Swift
Speak Now
(Taylor’s Version)€ 2,392+10.9%
North America

Taylor Swift€ 4,316

Lover

Folklore

2022

Asia

+9.2%

First Dome Tour€ 1,118+20.6%
Latin America
Rest of World

€ 277

€ 358

Taylor Swift

BTS

Encanto OST

Olivia Rodrigo

Morgan Wallen

The Beatles

The Weeknd

Kendrick
Lamar

The Weeknd

23
Imagine Dragons+19.3%+9.3%*

Note: € in Millions. All growth rates are in constant currency.
*Adjusted to exclude intercompany allocations.

Dawn FM

After Hours
23

MUSIC PUBLISHING
4Q REVENUE

FULL YEAR
REVENUE

FULL YEAR
ADJUSTED EBITDA+15.4%+12.3% +15.8%*+17.8% +20.2%*

€ 530

4Q22

€ 576

€ 1,799

4Q23

2022

€ 1,9562023

FULL YEAR ADJ.
EBITDA MARGIN+1.2pp+1.0pp*

€ 470
€ 410

2022

22.8%

2023

2022

24.0%

2023

*Excludes the CRB Phonorecords III Accrual from 2023; Excludes the Change in Society Accounting from 2022. See Items Impacting Comparability of Results in our earnings press release for more information
Note: € in Millions; All growth rates are in constant currency
24

MERCHANDISING & OTHER
4Q REVENUE

FULL YEAR
REVENUE

FULL YEAR
ADJUSTED EBITDA

FULL YEAR ADJ.
EBITDA MARGIN+17.9%+38.2%+0.9pp+26.5%

€ 706

€ 215

€ 181

€ 47

6.7%

5.8%

€ 36

€ 618

4Q22

4Q23

2022

2023

2022

2023

2022

2023

Note: € in Millions; All growth rates are in constant currency.
25

NET PROFIT AND EPS
NET PROFIT

ADJUSTED NET
PROFIT

EPS - BASIC

ADJUSTED EPS DILUTED+61.0%+9.7%+60.5%+8.7%€ 1,595€ 1,259€ 1,454€ 0.69

€ 782

2022

€ 0.80€ 0.87€ 0.43

2023

2022

2023

2022

2023

2022

2023

Note: Net Profit € Millions; All growth rates are YoY as reported.
26

STRATEGICORGANIZATIONAL
REDESIGN
STRATEGY• Empowers labels with new capabilities and additional
agility2024

Phase 1
Achievepartial year
cost savings€75m
Cost savings
tied toheadcountreduction

2025
Achieve
Phase 1
run-rate costsavings€125m

Phase 2
Combination offurtherex-US
headcountreduction andotheroperational
efficiencies

2026• Provides labels with enhanced access to highestperforming internal teams and resources• Achieves efficiencies in targeted cost areas whileproviding labels with capabilities to deepen artist andfan connections via new experiential, commerce, andcontent offerings

Phase 2

• Preserves unique label brands and entrepreneurial
cultures

Fully
implemented
by year end
Run-rate
cost savings€250m

IMPLEMENTATION AND IMPACT• First phase of redesign now underway• Run rate €250m in cost savings• Savings to be realized through headcount reduction
and other operational efficiencies

Note: In 2024, we expect to incur €125m of restructuring charges, €100m of which will be in the first quarter.
27
27

FY2023 FREE CASH FLOW• €132m tax paid to cover employee withholding largely ontransition grants; lessens dilutive impact of equity plan

• Dividend policy: 50% of adjusted net income• FY23 final dividend proposal: €492m (€0.27/share)• Total 2023 dividend proposal: €929 million (€0.51/share)+14.6%
YoY

367-11.4%
YoY

(100)

164

(393)
(94)

429

+6.1%
YoY
(77)

(10)

(178)
-0.4%
YoY

(444)
€2,278€1,704€1,418€1,082

OperatingNon-cash shareProfit
based compensation
expense, net of
employees
tax withheld (1)Otheradjustments(2)

Royaltyadvancepayments,
net

Other
changesin networking
capital

Net cash provided
by operating
activities
before income
taxes paid

Incometax
paid

Repaymentof leaseliabilities
and related
interest

Interest
paid,
net

Other cash
items
relatedto financing
activities

Free Cash
Flow
beforeinvestingactivities

Catalog
investments

Other
investingactivities
(3)

Free
Cash
Flow

Note: € in Millions; Y/Y growth rates as reported; (1) Non-cash share-based compensation expense of €561m less €132m employees tax withheld;(2) Other adjustments include amortization and depreciation of intangible assets, change in provisions, net, and gain/(loss) on sale of assets;(3) Other investing activities includes Other intangible assets investments, Capital Expenditures, Purchases of consolidated companies, Investments in equity affiliates, Purchase of financial assets, divestitures and dividends received.
28

INVESTING ACTIVITYCATALOG INVESTMENTS• Not required investment, opportunistic like M&A
Financial Assets
Equity Affiliates
M&A less cash acquired
Capital Expenditures
Intangibles
Catalogue Investments

€532
€ 36
€ 22
€ 33

• Multiple ways to finance: Chord Music Partners,
operating cash flow, balance sheet capacity

€631
€ 154

€ 22

€ 81

€ 60
€ 97
€ 47

€ 74
€ 359
€ 178

FY22

• 2023 catalog investments include acquiring thecatalogs of RS Group in Thailand and Oriental Star
Agencies, a British label focused on South Asianmusic, as well as several small artist deals

FY23

OTHER INVESTING ACTIVITIES• Low capital intensity business: Capex €47m in 2023
• M&A focused on high-growth music market expansion,
superfan engagement and building the label of the
future• 2023 investments include the acquisitions of: 50%
stake in the entity that owns the iconic Capitol
Records building, a brand services company, a niche
classical music label, and UAE-based music company
Chabaka; also includes €75m cash put in escrow for acatalog acquisition

Note: € in Millions; Investing Activity excludes Proceeds from divestitures (€2m), Dividends received from equity affiliates(€4m) and Dividends received from investments (€3m).
29
29

BALANCE SHEETAND LIQUIDITY
STRONG BALANCE SHEETPROVIDES STRATEGIC FLEXIBILITYTOTAL DEBT

€ 2,250€ 439

Net Debt€ 2,104
€ 413

Cash

• Net Debt/EBITDA of 0.9x
• Investment grade rating• Average debt maturity: 4.9 years• 85% of gross debt at fixed rate

€ 1,81031/12/2022€ 1,689• Capital allocation priorities:‒ Investing in core business‒ Strategic M&A (includes catalogs)‒ Returning capital to shareholders (currently
through dividends)

31/12/2023

Note: € in Millions.
30
30

STRATEGIC INVESTMENT IN CHORD MUSIC PARTNERS
DEAL HIGHLIGHTS• UMG invests $240m (~€223m) at an effective multiple of 17x EBITDA for a 25.8% stake in Chord Music Partners• 17x multiple includes interest in Chord as well as income from distribution/administration rights, but does
not include anticipated uplift in performance of catalog from bringing distribution/administration to UMG• Forms long-term strategic partnership with Dundee Partners to manage and acquire world-class music IP• Provides a capital efficient vehicle for future catalog acquisitions across recorded music and music publishing• Increases UMG buying power through a combination of leverage and partner equity capital• UMG will begin actively managing Chord’s publishing & recording catalogs in late 2024, with UMPG taking overpublishing administration and Virgin Music Group taking over recorded music distribution
CHORD OVERVIEW• Formed in 2021 by Dundee Partners and KKR• Existing catalog includes over 60,000 premier music copyrights across music publishing and recorded music• Catalog highlights include: The Weeknd, Ryan Tedder/OneRepublic, David Guetta, Lorde, Kid Cudi, Diplo, Jimmy
Jam & Terry Lewis, Ellie Goulding, ZZ Top, John Legend, Twenty One Pilots

31

SIR LUCIAN GRAINGE

Q&ACHAIRMAN AND CEO

BOYD MUIREVP, CFO & PRESIDENT OF OPERATIONSMICHAEL NASH

EVP, CHIEF DIGITAL OFFICER

32