Universal Music Group N.v. · EURONEXT:UMG
Universal Music — Shareholder Meeting (2024)
101 slides from Universal Music's shareholder meeting presentation, 2024
Slide 1: Annual General Meeting 2024
Universal Music Group Annual General Meeting 2024 UNIVERSAL UNIVERSAL MUSIC GROUP
Slide 2: Important Information
Important Information Forward Looking Statements This presentation contains statements that may constitute forward-looking statements relating to the business, financial performance and results of Universal Music Group N.V. (the “Company”) and the industry in which the Company operates. These statem
Slide 3: Sherry Lansing
Sherry Lansing Chairman of the Board & Independent Non-Executive Director
Slide 4: Agenda Item 1: Opening
Agenda Item 1 Opening
Slide 5: Agenda Item 2: Discussion of the Annual Report 2023
Agenda Item 2 Discussion of the Annual Report 2023
Slide 6: Sir Lucian Grainge CBE
Sir Lucian Grainge CBE Chairman & CEO Universal Music Group
Slide 7: FY2023 Consolidated Results
FY2023 Consolidated Results Revenue Adjusted EBITDA +11.1% +12.4%* +14.6% +18.5%* € 11,108 € 2,369 € 10,340 € 2,135 2022 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 Item
Slide 8: 9 of the Top 10 Global Recording Artists of 2023
9 of the Top 10 Global Recording Artists of 2023 1 Taylor Swift* 6 Morgan Wallen 2 SEVENTEEN 7 TOMORROW X TOGETHER 3 Stray Kids 8 NewJeans 4 Drake* 9 Bad Bunny* 5 The Weeknd* 10 Lana Del Rey* SOURCE: IFPI *Universal Music Publishing Group Songwriter
Slide 9: 2023 Global Artist Success
2023 Global Artist Success Spotify Apple Music YouTube 6 of theGlobal TOP 10 13 of Global the TOP 20 3 of Global the TOP 5 Artists Songs Songs #1 Morgan Wallen “Last Night” #1 Toosii #1 Taylor Swift Drake & 21 Savage “Rich Flex” “Favorite Song” Taylor Swift “Anti-Hero” The Weeknd Metro Boomin, The W
Slide 10: 2023 U.S. Artist & Songwriters Success
2023 U.S. Artist & Songwriters Success Spotify Apple Music Billboard The TOP 4 5 ofSongs the TOP 7 6 of the TOP 10 Albums on the U.S. Billboard 200 Artists in the U.S. in the U.S. Year-End Chart #1 Morgan Wallen One Thing At A Time Taylor Swift Midnights Drake & 21 Savage Her Loss #1 Taylor Swift #1
Slide 11: 2023 Success in Industry's Top Music Markets
2023 Success in Industry’s Top Music Markets United Kingdom Japan Germany 7 of the TOP 10 5 of the TOP 10 6 of the TOP 10 Albums Artists Albums #1King & Prince Mr. 5 including SEVENTEEN FML SEVENTEEN ALWAYS YOURS #1 The Rolling Stones Hackney Diamonds 3 of the TOP 5 SEVENTEEN SEVENTEENTH HEAVEN Meta
Slide 12: Our Impact
Our Impact Music + Health All Together Now Environment Foundation
Slide 13: Artist-Centric Approach
Artist-Centric Approach Better Values Greater Enhanced User Premium Tiers Artistry And The Alignment Experiences, And Products Artist / Fan Between Artists Accelerated For Superfans Relationship And Platforms Growth, Better And High-value Subscription Customers Economics
Slide 14: Responsible AI Initiative
Responsible AI Initiative Center the conversation Advance artist-centric on artists approaches to deploy AI tools and products in Defend their interests innovative ways and our rights Lead industry advocacy Forge new commercial and cross-industry and creative opportunities coalitions
Slide 15: Redesigning Our Global Organization
Redesigning Our Global Organization Empowers labels with new capabilities and additional agility Provides labels with enhanced access to highest-performing internal teams and resources Achieves efficiencies in targeted cost areas while providing labels with capabilities to deepen artist and fan conn
Slide 16: Expanding Our Global Presence
Expanding Our Global Presence China India Thailand Jay Chou Eason Chan South Asia Africa MENA
Slide 17: Annual General Meeting 2024
Universal Music Group Annual General Meeting 2024 UNIVERSAL UNIVERSAL MUSIC GROUP
Slide 18: Boyd Muir
Boyd Muir EVP, CFO & President of Operations Universal Music Group
Slide 19: FY2023 Consolidated Results
FY2023 Consolidated Results Revenue Adjusted EBITDA Adjusted EBITDA Adjusted EPS - Margin Diluted +11.1% +12.4%* +14.6% +18.5%* +0.7pp +1.2pp* +8.7% € 11,108 € 2,369 € 0.87 20.6% 21.3% € 10,340 € 2,135 € 0.80 2022 2023 2022 2023 2022 2023 2022 2023 *Excludes the CRB Phonorecords III Accrual and the
Slide 20: Healthy Growth & Cash Flow Generation Since Listing
Healthy Growth & Cash Flow Generation Since Listing Sustained Growth In Revenue & Adjusted EBITDA Strong Free Cash Flow Generation Revenue FCF before investing activities Adjusted EBITDA Free Cash Flow € 1,704 3% R +14. € 11,108 € 1,606 ue CAG ven € 10,340 202 3 Re 2 020- € 8,504 € 1,086 € 1,082 € 7
Slide 21: Recorded Music
Recorded Music Revenue Adjusted EBITDA Adjusted EBITDA Margin +10.2% +11.2%* +11.0% +14.8%* +0.2pp +0.8pp* € 8,461 23.9% 24.1% € 2,042 € 7,937 € 1,900 2022 2023 2022 2023 2022 2023 *Excludes the Legal Provision from 2023; Excludes the Legal Settlement from 2022. See Items Impacting Comparability of
Slide 22: Recorded Music Revenue
Recorded Music Revenue Recorded FY2023 Recorded Music Breakdown Music Regional 2023 Revenue Breakdown FY22 FY23 +12.8% +3.6% -35.7% +19.4% +13.6% Europe € 2,392 € 4,275 +10.9% North America € 4,316 +9.2% Asia € 1,118 € 1,425 € 1,380 € 1,174 +20.6% Latin America € 207 Rest of World € 358 € 277 Subscr
Slide 23: Music Publishing
Music Publishing Full Year Revenue Full Year Adjusted Full Year Adj. EBITDA EBITDA Margin +12.3% +15.8%* +17.8% +20.2%* +1.2pp +1.0pp* € 1,956 € 470 24.0% € 1,799 22.8% € 410 2022 2023 2022 2023 2022 2023 *Excludes the CRB Phonorecords III Accrual from 2023; Excludes the Change in Society Accounting
Slide 24: Merchandising & Other
Merchandising & Other Full Year Revenue Full Year Adjusted Full Year Adj. EBITDA EBITDA Margin +17.9% +38.2% +0.9pp € 706 € 47 6.7% € 618 5.8% € 36 2022 2023 2022 2023 2022 2023 Note: € in Millions; All growth rates are in constant currency.
Slide 25: Net Profit and EPS
Net Profit and EPS Net Profit Adjusted Net Profit EPS - Basic Adjusted EPS - Diluted +61.0% +9.7% +60.5% +8.7% € 1,259 € 1,595 € 0.69 € 0.87 € 1,454 € 0.80 € 782 € 0.43 2022 2023 2022 2023 2022 2023 2022 2023 Note: Net Profit € Millions; All growth rates are YoY as reported.
Slide 26: Strategic Organization Redesign
Strategic Organization Redesign 2024 2025 2026 Strategy • Empowers labels with new capabilities and additional agility Phase 1 Achieve Phase 1 Phase 2 • Provides labels with enhanced access to highest- performing internal teams and resources Achieve partial Fully • Achieves efficiencies in targeted
Slide 27: FY2023 Free Cash Flow
• €132m tax paid to cover employee withholding largely on FY2023 Free Cash Flow transition 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
Slide 28: Balance Sheet and Liquidity
Balance Sheet and Liquidity Total Debt Net Debt Cash Strong Balance Sheet €2,250 Provides Strategic Flexibility €2,104 • Net Debt/EBITDA of 0.9x € 439 € 413 • Investment grade rating • Average debt maturity: 4.9 years • 85% of gross debt at fixed rate • Capital allocation priorities: • Investing in
Slide 29: 1Q24 Consolidated Results
1Q24 Consolidated Results Revenue Adjusted EBITDA Adjusted EBITDA Margin +7.9% +15.9% +1.5pp € 2,594 € 591 22.8% € 2,451 21.3% € 522 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 Note: € in Millions; Revenue and Adjusted EBITDA growth in constant currency
Slide 30: Annual General Meeting 2024
Universal Music Group Annual General Meeting 2024 UNIVERSAL UNIVERSAL MUSIC GROUP
Slide 31: Q&A
Q&A
Slide 32: Agenda Item 3: Revised Dutch Corporate Governance Code
Agenda Item 3 Discussion of the implementation of the revised Dutch Corporate Governance Code
Slide 33: Q&A
Q&A
Slide 34: Agenda Item 4: Advisory vote on remuneration report 2023
Agenda Item 4 Advisory vote on the remuneration report 2023
Slide 35: Q&A
Q&A
Slide 36: Remuneration Report 2023
Remuneration Report 2023 (Advisory) Voting Item
Slide 37: Agenda Item 5: Adoption of the financial statements 2023
Agenda Item 5 Adoption of the financial statements 2023
Slide 38: Ernst & Young Accountants LLP
Ernst & Young Accountants LLP External Auditor
Slide 39: Q&A
Q&A
Slide 40: Financial Statements 2023
Financial Statements 2023 Voting Item
Slide 41: Agenda Item 6: Dividend
Agenda Item 6 Dividend
Slide 42: Agenda Item 6A: Discussion of the dividend policy
Agenda Item 6A Discussion of the dividend policy
Slide 43: Q&A
Q&A
Slide 44: Agenda Item 6B: Adoption of the dividend proposal
Agenda Item 6B Adoption of the dividend proposal
Slide 45: Q&A
Q&A
Slide 46: Dividend Proposal
Dividend Proposal Voting Item
Slide 47: Agenda Item 7: Discharge
Agenda Item 7 Discharge
Slide 48: Agenda Item 7A: Discharge of the Executive Directors
Agenda Item 7A Discharge of the Executive Directors
Slide 49: Q&A
Q&A
Slide 50: Discharge of the Executive Directors
Discharge of the Executive Directors Voting Item
Slide 51: Agenda Item 7B: Discharge of the Non-Executive Directors
Agenda Item 7B Discharge of the Non-Executive Directors
Slide 52: Q&A
Q&A
Slide 53: Discharge of the Non-Executive Directors
Discharge of the Non-Executive Directors Voting Item
Slide 54: Agenda Item 8: Re-appointment of Vincent Vallejo
Agenda Item 8 Re-appointment of Vincent Vallejo as Executive Director
Slide 55: Q&A
Q&A
Slide 56: Re-Appointment of Vincent Vallejo as Executive Director
Re-Appointment of Vincent Vallejo as Executive Director Voting Item
Slide 57: Agenda Item 9: Non-Executive Directors
Agenda Item 9 Non-Executive Directors
Slide 58: Agenda Item 9A: Re-appointment of Bill Ackman
Agenda Item 9A Re-appointment of Bill Ackman as Non-Executive Director
Slide 59: Q&A
Q&A
Slide 60: Re-Appointment of Bill Ackman as Non-Executive Director
Re-Appointment of Bill Ackman as Non-Executive Director Voting Item
Slide 61: Agenda Item 9B: Re-appointment of Cathia Lawson-Hall
Agenda Item 9B Re-appointment of Cathia Lawson-Hall as Non-Executive Director
Slide 62: Q&A
Q&A
Slide 63: Re-appointment of Cathia Lawson-Hall as Non-Executive Director
Re-appointment of Cathia Lawson-Hall as Non-Executive Director Voting Item
Slide 64: Agenda Item 9C: Re-appointment of Cyrille Bolloré
Agenda Item 9C Re-appointment of Cyrille Bolloré as Non-Executive Director
Slide 65: Q&A
Q&A
Slide 66: Re-appointment of Cyrille Bolloré as Non-Executive Director
Re-appointment of Cyrille Bolloré as Non-Executive Director Voting Item
Slide 67: Agenda Item 9D: Re-appointment of James Mitchell
Agenda Item 9D Re-appointment of James Mitchell as Non-Executive Director
Slide 68: Q&A
Q&A
Slide 69: Re-appointment of James Mitchell as Executive Director
Re-appointment of James Mitchell as Executive Director Voting Item
Slide 70: Agenda Item 9E: Re-appointment of Manning Doherty
Agenda Item 9E Re-appointment of Manning Doherty as Non-Executive Director
Slide 71: Q&A
Q&A
Slide 72: Re-appointment of Manning Doherty as Non-Executive Director
Re-appointment of Manning Doherty as Non-Executive Director Voting Item
Slide 73: Agenda Item 9F: Re-appointment of Margaret Frerejean-Taittinger
Agenda Item 9F Re-appointment of Margaret Frerejean-Taittinger as Non-Executive Director
Slide 74: Q&A
Q&A
Slide 75: Re-appointment of Margaret Frerejean-Taittinger as Non-Executive Director
Re-appointment of Margaret Frerejean-Taittinger as Non-Executive Director Voting Item
Slide 76: Agenda Item 9G: Re-appointment of Nicole Avant
Agenda Item 9G Re-appointment of Nicole Avant as Non-Executive Director
Slide 77: Q&A
Q&A
Slide 78: Re-appointment of Nicole Avant as Non-Executive Director
Re-appointment of Nicole Avant as Non-Executive Director Voting Item
Slide 79: Agenda Item 9H: Appointment of Eric Sprunk
Agenda Item 9H Appointment of Eric Sprunk as Non-Executive Director
Slide 80: Q&A
Q&A
Slide 81: Appointment of Eric Sprunk as Non-Executive Director
Appointment of Eric Sprunk as Non-Executive Director Voting Item
Slide 82: Agenda Item 9I: Appointment of Mandy Ginsberg
Agenda Item 9I Appointment of Mandy Ginsberg as Non-Executive Director
Slide 83: Q&A
Q&A
Slide 84: Appointment of Mandy Ginsberg as Non-Executive Director
Appointment of Mandy Ginsberg as Non-Executive Director Voting Item
Slide 85: Agenda Item 10: Non-Executive Director Remuneration
Agenda Item 10 Non-Executive Director Remuneration
Slide 86: Manning Doherty
Manning Doherty Non-Executive Director
Slide 87: Agenda Item 10A: Non-Executive Directors' Remuneration Policy
Agenda Item 10A Adoption of the Non-Executive Directors’ Remuneration Policy
Slide 88: Q&A
Q&A
Slide 89: Adoption of the Non-Executive Directors' Remuneration Policy
Adoption of the Non-Executive Directors’ Remuneration Policy Voting Item
Slide 90: Agenda Item 10B: Authorization to issue shares to Non-Executive Directors
Agenda Item 10B Authorization to issue shares and to grant rights to subscribe for shares to Non-Executive Directors under the Non-Executive Directors’ Remuneration Policy
Slide 91: Q&A
Q&A
Slide 92: Authorization to issue shares to Non-Executive Directors
Authorization to issue shares and grant rights to subscribe shares to Non-Executive Directors under the Non-Executive Directors’ Remuneration Policy Voting Item
Slide 93: Agenda Item 11: Repurchase and Cancellation of Shares
Agenda Item 11 Repurchase and Cancellation of Shares
Slide 94: Agenda Item 11A: Authorization to repurchase own shares
Agenda Item 11A Authorization of the board as the competent body to repurchase own shares
Slide 95: Q&A
Q&A
Slide 96: Authorization of the board to repurchase own shares
Authorization of the board as the competent body to repurchase own shares Voting Item
Slide 97: Agenda Item 11B: Cancellation of shares
Agenda Item 11B Cancellation of shares
Slide 98: Q&A
Q&A
Slide 99: Cancellation of shares
Cancellation of shares Voting Item
Slide 100: Agenda Item 12: Any other business
Agenda Item 12 Any other business
Slide 101: Agenda Item 13: Closing
Agenda Item 13 Closing