Reservoir Media, Inc.. · NASDAQ:RSVR
Reservoir Media, Inc — Investor Presentation (June 2025)
33 slides from Reservoir Media, Inc's investor presentation, June 2025
Slide 1: Investor Presentation June 2025
I N V E S TO R P R E S E N TAT I O N June 2025
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Financial Information; Non-GAAP Financial Measures This presentation contains “forward-looking statements” for purposes of the safe harbor provisions under the U.S. This presentation contains unaudited financial information of reservoir. The unaudited financial
Slide 3: Disclaimer
Disclaimer Industry and Market Data Trademarks, Service Marks and Trade Names The information in this presentation also includes information provided by third parties. None of Reservoir, its Reservoir and its affiliates own or have rights to various trademarks, service marks and trade names that the
Slide 4: First U.S.-Based Publicly Traded Independent Music Company
First U.S.-Based Publicly Traded Independent Music Company KEY FACTS • NASDAQ: RSVR $7.63 (at 3/31/25) Leading, diversified music publishing and recorded music business • Market Cap: $498M (at 3/31/25) • Vast collection of iconic hits across genre, geography, and time period • Fiscal Year End: Mar 3
Slide 5: Compelling Investment Highlights
Compelling Investment Highlights Leading Independent Music Competitive Advantages & Growing Industry, Supported Company With Proven Platform Value Enhancement Capabilities By Powerful Secular Tailwinds • $1B+ of invested capital since inception1 • Value enhancement efforts lead to • Supported by ris
Slide 6: Music 101
Music 101 MUSIC PUBLISHING PERFORMING RIGHTS DIGITAL SERVICES THIRD PARTIES FOREIGN SUB-PUBLISHERS RECORD LABELS ORGANIZATIONS The YouTube SONGWRITERS PUBLISHER ARTISTS • CATALOG • FUTURES RECORDED MUSIC CONSUMERS PLATFORMS RECORD LABEL ARTISTS The YouTube 6
Slide 7: History of Growth
History of Growth 2021 2007 - 2020 RSVR Nasdaq Listed ANNSAIY yn 4 ; x Zz )” g f Pa o 4 % a ro f hm ALI TAMPOS! 2 JLD y od & @ JOE WALSH eS i 9 1 NICK LEE 8 {JAMIE HARTMAN f et JONIMITCHELL — OAK FELDER SNOOP DOGG miGos '$122M Tommy W AW 2 eu fo) E WuSIC REVERS MUSIC + BIGLIFE SHAPIRO TOMMY BOY . Sm
Slide 8: Music Publishing Segment Overview
Music Publishing Segment Overview Music Publishing represented Reservoir’s primary focus from its 2007 inception until its large-scale step towards building its Recorded Music business in 2019 with the acquisition of Chrysalis Records. 94% of Catalog has CATALOG EXAMPLES 150K+ No Musical Composition
Slide 9: Music Publishing Top Songs by NPS
Music Publishing Top 10 Songs by NPS 1 1 “It’s Your Thing” The Isley Brothers 1.3%, (1969) 2 “Lady Marmalade” Labelle 1.2%, (1974) 3 “Ring of Fire” Johnny Cash 0.9%, (1963) 4 “Take Me Home, Country Roads” John Denver 0.8%, (1971) 5 6 7 8 “Gimme More” “Yeah!” “Bring Me To “Disco Inferno” Britney Spea
Slide 10: Recorded Music Segment Overview
Recorded Music Segment Overview Reservoir’s first foray into the recorded music business initially was in 2012 with the acquisition of Philly Groove. Reservoir expanded its recorded music segment through the acquisition of Blue Raincoat (incl. Chrysalis Records) in 2019 and Tommy Boy Music in 2021.
Slide 11: Recorded Music Top Tracks by NLS
Recorded Music Top 10 Tracks by NLS 1 1 2 3 4 “Jump Around” “Gangsta’s “Nothing “What It’s Like” House of Pain Paradise” Compares 2 U” Everlast 4.0%, (1992) Coolio Sinéad O’Connor 2.4%, (1998) 2.7%, (1990) 3.9%, (1995) 5 6 7 8 “Missing” “Shout” “For The Love “It’s Your Thing” Everything But The Isle
Slide 12: Growth Drivers
Growth Drivers STRONG SECULAR VALUE ENHANCEMENT TAILWINDS INITIATIVES PROVEN M&A PLATFORM OPERATING LEVERAGE & & NEW SIGNINGS CASH FLOW GENERATION 12
Slide 13: Music Industry: Strong Growth Forecasted
Music Industry: Strong Growth Forecasted 2023 2030 14% 14% 43% 48% 38% 43% CAGR INDUSTRY $65B $104B 7% Recorded Music $28B $50B 9% Live Music $28B $39B 5% Publishing $9B $15B 8% Paid Streaming Subs 663M 1.2B 9% RECORDED LIVE PUBLISHING 1 Wall Street Research (based on Net Revenue) 13
Slide 14: Value Enhancement Initiatives
Value Enhancement Initiatives VALUE ENHANCEMENT Organic growth outpaces industry growth Placement of musical compositions into television, film, SYNCHRONIZATION advertisements, gaming platforms, and toys RSVR 6-Year Digital licensing partnerships with content platforms and in- Revenue CAGR1 DIGITAL
Slide 15: Value Enhancement Examples & Industry Advocacy
Value Enhancement Examples & Industry Advocacy Top Synch Highlights1 Industry Advocate & Leader ELECTED BOARD SEATS “Ring of Fire” – “All Apologies” – “Take me Home, Johnny Cash Sinéad O’Connor Country Roads” – John Denver “Non, je ne “Mama Said Knock regrette rien” – You Out” – LL Cool J Edith Piaf
Slide 16: Proven M&A Platform
Proven M&A Platform 249 New Deals Considered In FY2024 107 OFFERS MADE $868M 95% 12% CAPITAL of GROSS 43% DEPLOYED since inception1 PROFIT & COST SYNERGIES FLOW to EBITDA2 UNLEVERED IRR since 20073 66 DEALS INTO EXCLUSIVITY 62% 100+ M&A TARGETS IN CURRENT PIPELINE AS OF 3-31-25 61 DEALS CLOSED Total
Slide 17: Proven M&A Platform: Bought-Down Multiples
Proven M&A Platform VALUE ENHANCEMENT LEADS TO BOUGHT-DOWN MULTIPLES NPS/NLS Multiple NPS/NLS Multiple Date Purchase Price (At Close) (At Close) (FY2025) (FY2025) 2021 2020 2020 $ 101.3 $ 74.9 $ 63.2 $ 5.5 $ 4.1 $ 3.7 18.3 x 18.1 x 17.0 x $ 9.5 $ 4.7 $ 4.5 10.7 x 15.8 x 14.0 x 15.5x WEIGHTED AVERAGE
Slide 18: New Roster Signings
New Roster Signings Advance funds to established songwriters who are then under exclusive contract to create music with the benefit of long- term ownership. NOTABLE SIGNINGS $195M+ 3 YEAR • Joe Walsh • Kings of Leon • Ali Tamposi • Steph Jones CAPITAL DEPLOYED1 TYPICAL TERM CONTRACT • Killer Mike •
Slide 19: New Roster Signings: Futures Investments Lead to High IRR
New Roster Signings FUTURES BASED INVESTMENTS LEAD TO HIGH IRR Recouped NPS/NLS Multiple Date Advances IRR (FY2025) (FY2025) (FY2025) 9.2x 2017 $ 20.3 65% $ 0.7 10.0 x 29.2% 2016 $ 14.2 57% $ 0.5 12.2 x 12.5% 2019 $ 12.4 78% $ 0.3 10.1 x 21.7% 2012 3.4 x EFFECTIVE CURRENT $ 9.3 91% $ 0.3 29.9% MULTI
Slide 20: Operating Leverage & Cash Flow Generation
Operating Leverage & Cash Flow Generation Core Infrastructure Provides Substantial Operating Leverage as the Business Grows > 95% of Acquired Gross OPERATING LEVERAGE Profit Should Fall to Adj. EBITDA1 REVENUE EXPENSES • Asset light model Today Future • Limited incremental expenses needed as new cat
Slide 21: Financials
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Slide 22: Q4 Fiscal Year 2025 Results
Q4 Fiscal Year 2025 Results 6% total revenue Issued financial Adj. EBITDA year-over- Strengthened reputation as a well- growth year-over-year outlook for fiscal year year growth of 14% for respected home for award-winning • Music Publishing revenue 2026, including 5% the quarter songwriters and arti
Slide 23: Strong Growth Track Record & Forecast – Fiscal Year 2026 Outlook
Strong Growth Track Record & Forecast – Issued Fiscal Year 2026 Outlook ($ in millions) Current Fiscal 2026 Outlook Growth (at mid-point) REVENUE $164 - $169 5% ADJUSTED EBITDA $68 - $72 6% REVENUE CORE DRIVERS $122 $145 $159 • Strength & Diversity of Catalog • Strong Execution in Futures Business $
Slide 24: Improving Profitability
Improving Profitability GROSS PROFIT ADJUSTED EBITDA $MM $MM $101 $56 $66 $74 $89 $46 FY2023 FY2024 FY2025 FY2023 FY2024 FY2025 24 Note: Excludes the effect of an y non-cash stock-based compensation expense related to the current stock incentive plan.
Slide 25: Solid Balance Sheet & Strong FCF Generator
Solid Balance Sheet & Strong FCF Generator ADJUSTED FREE CASH FLOW1 BALANCE SHEET METRICS as of 3-31-25 $MM TOTAL DEBT2: $388M CASH: $21M $68 $367M $54 NET DEBT3: $53 AVAILABLE DEBT: $58M (after de-SPAC) FY2023 FY2024 FY2025 1 Op erating ca sh flows, less advances 2 Total Debt is gro ss debt, less d
Slide 26: Appendix
Appendix 26
Slide 27: Music Publishing 101
Music Publishing 101 IP RIGHTS: • Songs owned by publisher or songwriter KEY CASH FLOW METRICS • Catalog = previously released songs Revenue / Gross Royalties • Futures = songwriters under active contract who are writing new songs (-) Writer Royalties = Net Publisher Share (NPS) PROTECTED ASPECT OF
Slide 28: Recorded Music 101
Recorded Music 101 IP RIGHTS: • Collection of master recordings owned by a record label or performing artist KEY CASH FLOW METRICS Revenue / Sales / Royalties PROTECTED ASPECT OF WORK: (-) Artist Royalties • Sound recording of a composition (-) Manufacturing & Distribution Costs = Net Label Share (N
Slide 29: RSVR Financial Model
RSVR Financial Model 101 MUSIC PUBLISHING RECORDED MUSIC REVENUE Revenue / Gross Royalties Revenue / Sales / Royalties LESS: Artist Royalties COST OF REVENUE LESS: Writer Royalties LESS: Manufacturing/Distribution Costs GROSS PROFIT Net Publisher Share (NPS) Net Label Share (NLS) OPERATING EXPENSES
Slide 30: Income Statement Highlights
Income Statement Highlights FISCAL YEAR END: March 31($ in M) 2021A 2022A 2023A 2024A 2025A Publishing Revenue $66 $77 $84 $96 $108 Recorded & Other Revenue $14 $31 $38 $49 $52 Total Revenue $80 $108 $122 $145 $159 Percentage Growth YoY 29% 35% 13% 18% 10% Net Publisher Share $37 $42 $45 $54 $62 Net
Slide 31: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights FISCAL YEAR END: March 31 ($ in M) 2021A 2022A 2023A 2024A 2025A Cash Flow Highlights Adj. EBITDA $32 $41 $46 $56 $66 Recoupments 13 13 13 14 22 Interest, W/C Changes & Other (9) (14) (5) (17) (20) Cash From Operating (Adj. FCF) $35 $40 $54 $53 $68 Acquisitions (
Slide 32: Consolidated EBITDA Reconciliation
Consolidated EBITDA Reconciliation FISCAL YEAR END: March 31 ($ in M) 2021A 2022A 2023A 2024A 2025A Net Income $ 9.3 $13.1 $2.8 $0.8 $7.7 Adjustments Depreciation & Amortization 14.1 19.0 22.1 25.0 26.3 Income Tax Expense / (Benefit) 2.1 4.3 5.6 0.3 2.1 Interest Expense 9.0 10.9 14.8 21.1 21.9 EBITD
Slide 33: IR Contact PR Contact
IR Contact PR Contact Jackie Marcus Suzanne Arrabito Alpha IR Group Reservoir RSVR@alpha-ir.com | 312-445-2870 sa@reservoir-media.com | 212-675-0541 33