Deezer Sa · EURONEXT:DEEZR
Deezer Sa — Shareholder Meeting (June 2024)
59 slides from Deezer Sa's shareholder meeting presentation, Jun 13, 2024
Slide 1: Annual general meeting June 13, 2024
Annual general meeting June 13, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation is for information only and does not purport to contain comprehensive or complete information about Deezer. Generally, certain values presented in this document are rounded. As a result, total amounts and percentages do not necessarily equal the sum of individually round
Slide 3: Agenda
Agenda 1 Opening of the Meeting Iris Knobloch – Chair of the Board of Directors 2 2023 Key Highlights Stuart Bergen – Chief Executive Officer 3 2023 Results and Q1 2024 Revenue Stéphane Rougeot – Deputy CEO and Chief Financial Officer 4 2024 Priorities and Outlook Stuart Bergen – Chief Executive Off
Slide 4: Opening of the Meeting
Opening of the Meeting Iris KNOBLOCH - Chair of the Board of Directors Florence LAO - General Counsel 4
Slide 5: 2023 Key Highlights
2023 Key Highlights Stuart BERGEN - Chief Executive Officer 5
Slide 6: Strong performance in 2023 and clear momentum, confirming financial targets for 2024 and 2025
Strong performance in 2023 and clear momentum, confirming financial targets for 2024 and 2025 Historic subscriber growth 10.5m subscribers (Dec-23), +1.1m in 2023 (+11.5% YoY) Acceleration of revenue growth +12.1% revenue YoY in Q4 23, +7.4% in FY 23 Significant improvement of adj. EBITDA Adj. EBITD
Slide 7: Live the Music - Successful relaunch and repositioning of the Deezer brand
Live the Music - Successful relaunch and repositioning of the Deezer brand Brand positioning Marketing Blitz EXPRESSION CONNEXION New tone of voice Refreshed visual identity 7 7
Slide 8: Catapulting fans from digital streaming to music experience services
Catapulting fans from digital streaming… Lyrics Did you Shaker Music Quiz Originals Concerts Ticketing translation know? …to music experience services 8 8
Slide 9: Expanding global business footprint through partners
Expanding global business footprint through partners Building a powerful partnership ecosystem Telco 2023 Renewal of successful long-term partnerships Media 2023 Ramp up and acceleration Retail 2023 Official music Renewal partner for Meli+ Other 2023 Entered long term partnership 9 9
Slide 10: Reinforced position as catalyst for industry transformation, enhancing the value of artists
Reinforced position as catalyst for industry transformation, enhancing the value of artists Artist centric model Price increase First to introduce comprehensive Industry first mover in Jan-22 model Better reward artists & music that fans 2nd wave initiated in Sep-23 value most Around half of Deezer
Slide 11: Heading towards profitability with a commitment to operational excellence
Heading towards profitability with a commitment to operational excellence On path to profitability in 2025 driven by: • Revenue growth • New terms with labels • Sound Partnerships’ profitability • Targeted and efficient marketing & brand investments • Continued strict cost control 11 11
Slide 12: 2023 Results & Q1 2024 Revenue
2023 Results & Q1 2024 Revenue Stéphane ROUGEOT - Deputy CEO and Chief Financial Officer 12
Slide 13: All-time high subscriber base, with steadily increasing ARPU
All-time high subscriber base, with steadily increasing ARPU Subscribers All-time high In m Partnerships Direct RoW Direct FR ARPU €3.6 +11.5% €4.0 13 13
Slide 14: Acceleration of revenue growth in Q4 at +12.1%
Acceleration of revenue growth in Q4 at +12.1% Total Revenue In €m YoY Growth % +6.5% +6.1% +4.8% +12.1% Sharp acceleration of revenue growth in Q4-23 (+12.1% YoY) Ramp-up in Partnerships (revenue growth +29% YoY) Limited impact of the new price increase on Direct in Q4-23, acceleration expected in
Slide 15: Annual revenue up 7.4%, in line with guidance
Annual revenue up 7.4%, in line with guidance • Direct: Subscriber growth in France (+5.9%) and higher ARPU (+3.9%) • France: Continued subscriber growth on direct resulting from improved geographic mix and price increases • RoW: Strong performance of new partnerships (Meli+, Sonos) and ramp-up • Pa
Slide 16: Improvement in adjusted gross profit and margin across all segments
Improvement in adjusted gross profit and margin across all segments Adjusted gross profit reached €110m in 2023 (+12.6% vs. 2022), driven by: • Higher level of activity • Positive impact of the optimization of the Group’s freemium service Improvement was partially offset by increased publishing rate
Slide 17: Consistent operational excellence with positive impact on operating expenses
Consistent operational excellence with positive impact on operating expenses 17 17
Slide 18: Robust cash position of €63.6m at end-December
Robust cash position of €63.6m at end-December, well above resources required to reach financial targets 18 1. One-off cash items include exceptional payments that are not related to our normal course of business. 18
Slide 19: Q1 2024: Revenue growth driven by Partnerships at +40%
Q1 2024: Revenue growth driven by Partnerships at +40% Total Revenue In €m +15.0% +15.0% +23.1% +40.3% +25.2% Other RoW Partnerships France Direct +5.2% +8.5% • Direct: Subscriber growth in France (+3.6%) and higher ARPU (+6.4%) • France: Continued subscriber growth on Direct and improvement of ARPU
Slide 20: 2024 Priorities & Outlook
2024 Priorities & Outlook Stuart BERGEN - Chief Executive Officer 20
Slide 21: 2024 roadmap is clear and impact already largely secured
2024 roadmap is clear and impact already largely secured Momentum created in 2023 Roadmap with impact in 2024 and 2025 Pricing Price increase deployed on >60% of user base Deployment for remaining users by end of Q2 Tailwind from recent deals with RTL, Sonos, Mercado Partnerships Libre will expand t
Slide 22: Confirmation of 2024 financial targets
Confirmation of 2024 financial targets in €m 10% revenue Adjusted EBITDA Positive free growth loss better than cash flow1 compared €(15)m in 2024 to 2023 22 1. Free cash flow: Adjusted EBITDA - change in working capital - capex - leases and net interests. 22
Slide 23: Governance & Compensation
Governance & Compensation Sophie GUIEYSSE - Chair of the Nomination and Remuneration Committee 23
Slide 24: Statutory Auditors' Reports
Statutory Auditors’ Reports Frédéric MARTINEAU - Ernst & Young 24
Slide 25: Statutory Auditors' Reports
Statutory Auditors’ Reports Ordinary General Meeting Report on the financial statements (1st resolution) Report on the consolidated financial statements (2nd resolution) Special report on the regulated agreements (4th & 5th resolutions) Extraordinary General Meeting 5 special reports on financial de
Slide 26: Report on the Statutory Financial Statements
Report on the Statutory Financial Statements Pages 179 to 182 of the 2023 Universal Registration Document Key audit matters ● Assessment of the cost of music rights and right holders’ liabilities, ● Valuation of partnerships with a guaranteed minimum clause, and ● Valuation of the goodwill In our op
Slide 27: Report on the Consolidated Financial Statements
Report on the Consolidated Financial Statements Pages 205 to 209 of the 2023 Universal Registration Document Key audit matters ● Assessment of the cost of revenue and right holders’ liabilities ● Valuation of partnerships with a guaranteed minimum clause In our opinion, the consolidated financial st
Slide 28: Special Report on the Regulated Agreements
Special Report on the Regulated Agreements Pages 122 to 123 of the 2023 Universal Registration Document Agreement approved and entered during the past financial year ● Coordinated sale agreement entered into between Deezer and its main shareholders, on March 31,2023 Agreement approved and entered in
Slide 29: Special Reports on Financial Delegations
Special Reports on Financial Delegations Authorizations to be granted to the Board of Directors Authorization to reduce the share capital by canceling shares in connection with the authorization for the Company to 17th resolution purchase its own shares Delegation of authority to the Board of Direct
Slide 30: Questions & Answers
Questions & Answers Iris KNOBLOCH - Chair of the Board of Directors 30
Slide 31: Presentation & Vote of Resolutions
Presentation & Vote of Resolutions Florence LAO - General Counsel 31
Slide 32: Ordinary General Meeting - 1st resolution
Ordinary General Meeting 1st resolution Approval of the statutory financial statements for the fiscal year ended December 31, 2023 32
Slide 33: Ordinary General Meeting - 2nd resolution
Ordinary General Meeting 2nd resolution Approval of the consolidated financial statements for the fiscal year ended December 31, 2023 33
Slide 34: Ordinary General Meeting - 3rd resolution
Ordinary General Meeting 3rd resolution Allocation of the results for the fiscal year ended December 31, 2023 34
Slide 35: Ordinary General Meeting - 4th resolution
Ordinary General Meeting 4th resolution Approval of the coordinated sale agreement entered into between the Company and certain of its principal shareholders on March 31, 2023 and of the engagement letter relating to the coordinated sale agreement entered into between the Company and Société Général
Slide 36: Ordinary General Meeting - 5th resolution
Ordinary General Meeting 5th resolution Approval of the management agreement entered into between the Company and Mr. Stuart Bergen on March 28, 2024 (agreement referred to in Article L. 225-38 of the French Commercial Code). 36
Slide 37: Ordinary General Meeting - 6th resolution
Ordinary General Meeting 6th resolution Renewal of Mrs. Iris Knobloch’s term of office as member of the Board of Directors for a three-year term 37
Slide 38: Ordinary General Meeting - 7th resolution
Ordinary General Meeting 7th resolution Renewal of Combat Holding’s term of office as member of the Board of Directors for a three-year term 38
Slide 39: Ordinary General Meeting - 8th resolution
Ordinary General Meeting 8th resolution Renewal of Mr. Mark Simonian’s term of office as member of the Board of Directors for a three-year term 39
Slide 40: Ordinary General Meeting - 9th resolution
Ordinary General Meeting 9th resolution Appointment of Ernst & Young Audit as expert in charge of certifying the sustainability information 40
Slide 41: Ordinary General Meeting - 10th resolution
Ordinary General Meeting 10th resolution Approval of the information on the 2023 compensation of each of the corporate officers required by Article L. 22-10-9 (I) of the French Commercial Code (ex-post vote) 41
Slide 42: Ordinary General Meeting - 11th resolution
Ordinary General Meeting 11th resolution Approval of the compensation and benefits of any kind paid during, or awarded in respect of, the fiscal year ended December 31, 2023, to Mrs. Iris Knobloch as Chair of the Board of the Directors (ex-post vote) 42
Slide 43: Ordinary General Meeting - 12th resolution
Ordinary General Meeting 12th resolution Approval of the compensation and benefits of any kind paid during, or awarded in respect of, the fiscal year ended December 31, 2023, to Mr. Jeronimo Folgueira as Chief Executive Officer (ex-post vote) 43
Slide 44: Ordinary General Meeting - 13th resolution
Ordinary General Meeting 13th resolution Approval of the 2024 compensation policy for corporate officers (excluding executive corporate officers) (ex-ante vote) 44
Slide 45: Ordinary General Meeting - 14th resolution
Ordinary General Meeting 14th resolution Approval of the 2024 compensation policy for the Chair of the Board of Directors (ex-ante vote) 45
Slide 46: Ordinary General Meeting - 15th resolution
Ordinary General Meeting 15th resolution Approval of the 2024 compensation policy for the Chief Executive Officer (ex-ante vote) 46
Slide 47: Ordinary General Meeting - 16th resolution
Ordinary General Meeting 16th resolution Authorization for the Board of Directors to purchase the Company’s shares 47
Slide 48: Extraordinary General Meeting - 17th resolution
Extraordinary General Meeting 17th resolution Authorization for the Board of Directors to reduce the share capital by canceling shares that were previously acquired as part of a share buyback program 48
Slide 49: Extraordinary General Meeting - 18th resolution
Extraordinary General Meeting 18th resolution Delegation of authority to the Board of Directors to increase the share capital by issuance of ordinary shares and/or any securities, with cancellation of shareholders’ preferential subscription right for the benefit of a category of persons meeting spec
Slide 50: Extraordinary General Meeting - 19th resolution
Extraordinary General Meeting 19th resolution Delegation of authority to the Board of Directors to increase the share capital by issuance of ordinary shares and/or any securities, with cancellation of shareholders’ preferential subscription right for the benefit of a category of persons meeting spec
Slide 51: Extraordinary General Meeting - 20th resolution
Extraordinary General Meeting 20th resolution Delegation of authority to the Board of Directors to increase the number of shares to be issued in the event of a share capital increase with cancellation of shareholders’ preferential subscription right 51
Slide 52: Extraordinary General Meeting - 21st resolution
Extraordinary General Meeting 21st resolution Delegation of authority to the Board of Directors to issue equity warrants with cancellation of shareholders’ preferential subscription right for the benefit of a category of persons meeting specific characteristics (members and observers of the Board of
Slide 53: Extraordinary General Meeting - 22nd resolution
Extraordinary General Meeting 22nd resolution Delegation of authority to the Board of Directors to carry out share capital increases by issuance of ordinary shares or other securities giving immediate, or future, access to the Company’s share capital, reserved for members of a company’s savings plan
Slide 54: Extraordinary General Meeting - 23rd resolution
Extraordinary General Meeting 23rd resolution Amendment to Article 13.1 of the Articles of Association to facilitate the staggered renewal of the terms of office of the members of the Board of Directors 54
Slide 55: Extraordinary General Meeting - 24th resolution
Extraordinary General Meeting 24th resolution Amendment of Article 13.3 of the Articles of Association to make the methods of participation in Board of Directors’ meetings more flexible 55
Slide 56: Extraordinary General Meeting - 25th resolution
Extraordinary General Meeting 25th resolution Amendment to the Articles of Association to set out the requirements regarding the disclosure of statutory threshold crossings 56
Slide 57: Ordinary General Meeting - 26th resolution
Ordinary General Meeting 26th resolution Powers for legal formalities 57
Slide 58: Closing of the Meeting
Closing of the Meeting Iris KNOBLOCH - Chair of the Board of Directors 58
Slide 59: Thank you
Thank you 59