Deezer Sa · EURONEXT:DEEZR
Deezer Sa — Investor Day (October 2022)
93 slides from Deezer Sa's investor day presentation, Oct 4, 2022
Slide 1: Investor Day
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Slide 2: Disclaimer
Disclaimer References herein to this presentation (the “Presentation”) shall mean and include this document, any oral presentation accompanying this document provided by Deezer SA (the “Company”), any question and answer session following that oral presentation and any further information that may b
Slide 3: Unlocking the full potential of music with technology
“Unlocking the full potential of music with technology” 3
Slide 4: The Deezer Journey
The Deezer Journey Profitable growth ● Refocus the core business ● Increase differentiation Expansion ● New opportunities in B2B (starting with RTL+ in App launched in 180 countries Germany) and new verticals ● ~€1.0bn and 37 languages 2025E Launch ● Became #2 in Brazil (supported ● Pioneer music st
Slide 5: Renewed Team
Renewed Team Jeronimo Folgueira Chief Executive Officer (since 2021) Stéphane Rougeot Chief Financial Officer & Deputy CEO (since 2022) Gitte Bendzulla Chief Operating Officer (since 2022) Matthieu Gorvan Chief Product & Technology Officer (since 2009) Aurélien Hérault Chief Innovation Officer (sinc
Slide 6: Today's Playlist
Today’s Playlist 1 Large and Growing Music Streaming Market “Sexy and I Know It” - LMFAO Home of Music - Product and Content Strategy 2 Driving Differentiation “Music Sounds Better With You” - Stardust Unique B2B Capabilities to Foster Efficient 3 Expansion “You’re My Best Friend” - Queen Healthy an
Slide 7: Large and Growing Music Streaming Market
01 Large and Growing Music Streaming Market “Sexy and I Know It”- LMFAO 7
Slide 8: Streaming has Driven the Music Industry's Rebound
Streaming has Driven the Music Industry’s Rebound Global Recorded Music Industry Revenue - $bn 25.9 22.6 Other 35% Streaming 18.4 16.1 100% 71% 99% 65% 1% 29% Launch 8 Source: IFPI, Global Music Report 2022 (trade values).
Slide 9: DSPs Have a Direct Connection to Fans
DSPs Have a Direct Connection to Fans Fans 9
Slide 10: Large and Fast-Growing Music Streaming Market
Large and Fast-Growing Music Streaming Market Worldwide Music Streaming Revenue - $bn + ~$20bn 48.0 + ~$20bn Increased Penetration Rate 28.2 Higher ARPU 8.0 New Sources of Revenue 10 Source: MIDiA Research 2022-2030 global music forecasts (Jul-22); Music streaming revenue includes subscriptions and
Slide 11: Continuously Increasing Value for Money
Continuously Increasing Value for Money Average digital audio1 listening time Global music revenue2 (minutes per day) as % of nominal spend 0.40% x4.2 0.30% 0.20% 0.12% 0.10% 0.0% 2010 2016 2021 1998 2001 2005 2009 2013 2017 2021 Sources: Insider Intelligence, US Time Spent with Media 2021. Goldman
Slide 12: More Compelling Value Proposition than SVOD
More Compelling Value Proposition than SVOD … $9.99 ~$45+ 1 for 1 premium subscription for ~4 subscriptions on average 2 Digital Audio 1h36 daily listening time3 Digital Video 1h17 daily watch time4 Sources: J.D. Power, TMT Insight, Jan 2021. Insider Intelligence, US Time Spent with Media 2021. (1)
Slide 13: Headroom for Price Increase
Headroom for Price Increase Deezer Premium vs Netflix Standard1 Deezer Family vs Netflix Premium2 Subscription price evolution in France - € Subscription price evolution in France - € 19.99 Netflix 17.99 16.99 15.99 15.49 Netflix 13.99 14.99 13.99 12.99 10.99 11.99 10.99 9.99 9.99 8.99 7.99 2013 201
Slide 14: Strong Positioning in Core Countries
Strong Positioning in Core Countries France Brazil 14m 25m [ ]m Market Subscribers 14 Source: MIDiA Research 2022-2030 global music forecasts (Jul-22); Subscriber count as of Dec-21.
Slide 15: Clear Competitive Advantages
Clear Competitive Advantages Strong Highly competitive Core Product Markets Large Partner to Catalogue Labels at competitive terms Unique & Artists B2B Go-to partner 15
Slide 16: Scarce Global Strategic Players
Scarce Global Strategic Players Strong barriers to entry Strategically valuable partner Competitive Product1 #1 #2 Large Catalogue 90m+ Music Titles Labels & + Go-to B2B Artists = Partner Friendly Worldwide Availability 185+ Countries Hardware Integrations 80+ Integrations Source: Data AI. (1) Apple
Slide 17: Growth Strategy
Growth Strategy Focus on Unique B2B Strong B2C Operational large markets partnership-led differentiation excellence to strategy fostering around music drive lifetime value efficient B2C experiences and and profitability expansion innovation 17
Slide 18: Home of Music - Product and Content Strategy Driving Differentiation
02 Home of Music - Product and Content Strategy Driving Differentiation “Music Sounds Better With You” - Stardust 18
Slide 19: Product Recognized by Users…
Product Recognized by Users… Best-in-class product Illustrated by strong engagement and retention (1) (2) store store 32h Monthly listening time 3 #1 #1 In France In France 4.7 4.5 54% Paying DAU / MAU (stickiness) 4 #2 #1 <1.5% Net Churn after 12 months 5 Worldwide Worldwide 4.7 4.5 Source: Data AI
Slide 20: …And The Press
…And The Press July 2022 4.2 4.2 #1 out of 12 4.2 4.1 4.3 4.1 4.0 20 Source: Forbes (link to article)
Slide 21: How we Have Built a State-of-the-Art Platform
How we Have Built a State-of-the-Art Platform User Centric Approach Listen Product Strategy Historic Pillars Collect Discover Unique and Innovative Features 21
Slide 22: Listen in HiFi
Listen in HiFi Among the first in the industry to launch HiFi1 2014: Sonos partnership 2017: all devices Included in standard premium subscription2 since 2022 Source: Company information. 22 (1) Sound quality of up to 16-bit Free Lossless Audio Codec (FLAC). (2) In a limited number of markets, acces
Slide 23: Listen and Sing
Listen and Sing First to integrate synchronized lyrics technology in 2014 Took lyrics feature to a whole new level as the only platform1 to offer in-app lyrics translation since 2022 Source: Company information. 23 (1) Based on public features comparisons vs. Spotify, Apple Music, Prime Music, YouTu
Slide 24: Listen Everywhere
Listen Everywhere Vehicle integrations On the road (Android Auto, Waze, Apple CarPlay, etc.) Everywhere Mobile & tablets 80+ At the office integrations Desktop When exercising Smart watches At home Smart speakers, TV, Desktop 24 Source: Company information.
Slide 25: Collect with SongCatcher
Collect with SongCatcher Only platform1 offering an in-app song-identifier Identify music in one tap and add it to favorite tracks or library Took SongCatcher to a whole new level with the ability to hum songs to identify them Source: Company information. 25 (1) Based on public features comparisons
Slide 26: Collect With Live Radio Fingerprint
Collect With Live Radio Fingerprint Only platform1 allowing users to identify the song played when listening to the radio Source: Company information. 26 (1) Based on public features comparisons vs. Spotify, Apple Music, Prime Music, YouTube Music, Tidal (as of Oct-22).
Slide 27: Collect With Library Importer
Collect With Library Importer Effortlessly transfer music library from another streaming service to Deezer Fully integrated in-app1 Source: Company information. 27 (1) Partnership with Tune my Music.
Slide 28: Discover with Flow
Discover with Flow Only platform1 providing a customized mood-adjustable infinite mix Accessed with a single click from the home screen Each mood is uniquely matched to users’ listening preferences 2014: Flow 2021: Flow with moods Source: Company information. (1) Based on public features comparisons
Slide 29: Discover With Track Mixes
Discover With Track Mixes Mix inspired by… a selected track Prominently featured on the app’s homepage to encourage users to discover new musical horizon 29
Slide 30: Discover With Country Selector
Discover With Country Selector Only platform1 allowing users to pick any country to enjoy local recommendations, from anywhere in the world Source: Company information. 30 (1) Based on public features comparisons vs. Spotify, Apple Music, Prime Music, YouTube Music, Tidal (as of Oct-22).
Slide 31: Continuously Improving Platform and Engagement
Continuously Improving Platform and Engagement Flow with moods Lyrics Translation Humming Monthly Average Listening Time Country Selector Based on Premium MAUs 35h SongCatcher 30h Radio Fingerprinting 25h 20h Music Library Track Mixes 15h Importer Pandemic impact HiFi on all Stories & Social Sharing
Slide 32: New Consumer Trends Driving Product Evolution
New Consumer Trends Driving Product Evolution Catalogue Immersive Music Access Experiences Broadly same Fans Community format & content Fan-to-Artist Ownership Uniqueness 32
Slide 33: Product Vision
Product Vision communities Oo Artists a fans ° Se 33
Slide 34: How We Soundtrack the Home of Music
How We Soundtrack the Home of Music Creation Curation Differentiating by creating Home Driving engagement content for younger demographics of through editor created content and Music Amplifying brand AI features strategy through artist endorsement Growing engagement and enhancing differentiation 34
Slide 35: Reflecting Cultural Trends to Maintain Relevance
Reflecting Cultural Trends to Maintain Relevance Mood & Moment driven access to music New ways of consuming music • Fluidity ✔Social Media Platforms No music tribes anymore TikTok, Instagram, Snapchat Users evolve between genres & decades • Reactivity ✔Soundtracks to platform phenomenons Swift refle
Slide 36: Targeted Curation Catering to all Audiences
Targeted Curation Catering to all Audiences ✔Human curation Team of global and local curators 21 markets localized 17 nationalities ✔Powered by AI Flow with moods Track Mix ✔Catering to all audiences 500+ playlists for every mood 280+ playlists for all genres & decades GenZ specific channel 36 Sourc
Slide 37: Drive Brand Value and Differentiation Through Creation
Drive Brand Value and Differentiation Through Creation Talk VOD Music originals Music VOD Live Recordings Livestreaming Stories Discovery Music Podcasts 37
Slide 38: The Home of Music Hosting Unique and Exclusive Experiences
The Home of Music Hosting Unique and Exclusive Experiences 38
Slide 39: Unique B2B Capabilities to Foster Efficient Expansion
03 Unique B2B Capabilities to Foster Efficient Expansion “You’re My Best Friend” - Queen 39
Slide 40: B2B at the Heart of our Business
B2B at the Heart of our Business 3.8m €112m B2B Subscribers B2B Revenue (Jun’22) (LTM Jun-22) 45 21% Partnerships B2B Adj. Gross Profit (Sep’22) (H1‘22) 40 Source: Company information.
Slide 41: B2B Back to Growth Post Pandemic
B2B Back to Growth Post Pandemic B2B Subscribers - EoP B2B ARPU B2B Revenue ARPU Ex. BR % growth yoy 4.5 4.3 4.4 -10% -2% +5% Slight growth in FR, offset Launch of recent by decrease in RoW Improved geo mix partnerships m € €m 3.9 4.0 3.8 2.5 109 112 2.3 2.3 107 RoW 2.8 2.9 2.8 FR 1.1 1.0 1.1 FY 20
Slide 42: Track Record of Landing and Expanding Win-Win Partnerships
Track Record of Landing and Expanding Win-Win Partnerships 2022 2021 2020 2014 2012 2010 2012 2015 2020 Jun-22 LTM B2B Revenue €40m €99m €109m €112m Contract Renewals 42 Source: Company information.
Slide 43: Unmatched Partner
Unmatched Partner 9.4m ✔ #2 independent DSP total subscribers (Jun-22) ✔ Best-in-class music product with full catalogue and 90m+ music titles strong differentiating features Unrivalled solution: State-of-the-art technical toolkit ✔ Tech B2B expertise including APIs, SDKs and Widgets ✔ Commercial B2
Slide 44: Telco and Media Companies Increasingly Looking to Develop Bundles
Telco and Media Companies Increasingly Looking to Develop Bundles Tech conglomerates increasingly …Pushing media companies offering bundles… to do the same x x x x 44 Source: Company information.
Slide 45: Music Streaming adds Value to a Broad Range of Partners
Music Streaming adds Value to a Broad Range of Partners Enhanced customer engagement and experience Loyalty, stickiness / churn, customer value Amplified brand value Differentiation and innovation powered by music and technology Additional business opportunities Customer acquisition, new revenue str
Slide 46: Benefits of B2B Deals for Deezer
Benefits of B2B Deals for Deezer Massive market opportunity Local expertise 11 2 US example for go-to-markets Mobile Net Adds 28 (21A-25E) ~350m2 SVOD Significant contributor 3 to profitability ~340m1 Dec-21A 137 Subscribers Build brand equity 4 paving the way for B2C Dec-25E Music Subscribers Sourc
Slide 47: B2B Growth Avenues
B2B Growth Avenues 1 2 3 Grow Existing Ramp-up Launch New B2B New sectors and/or geographies + + … H1 ‘22 Global Global ex BR % Penetration of RTL+ subs B2B Subs 3.8m 1.7m 10m paying subs1 in 26E % Penetration of customer base B2B ARPU €2.5 €4.4 Negotiated price Negotiated price Source: Company info
Slide 48: Existing Deals Still Have Significant Room to Grow
Existing Deals Still Have Significant 1 Room to Grow Ramp-up to Extend deals Cross-selling of New offer reach target to new New Verticals launches penetration of geographies partner clients 48
Slide 49: Continued B2B Expansion in France
Continued B2B Expansion in France 1 2010 2015 2021 10% B2B Revenue 20% Breakdown in France ~100% Standalone Bundle 80% 90% Partnerships 2022 - E-Commerce 2017 - Retail 2020 - Telco Efficient acquisition Strengthened win-win proposition Signing additional strategy through bundle through switch from b
Slide 50: Success Story in Brazil
Success Story in Brazil 1 16% 6% Fast Scale-Up through TIM Partnership Subs Market Share % 2017 2021 2021 vs 2017 Spill-Over effect on B2C B2C Revenue ~x2.31 2021 vs 2017 Gross Margin Improvement Through B2B Gross Margin % Partnership Scale Up +15pp Signing of New Partnerships Fueling Additional Gro
Slide 51: First-of-its Kind Offer in Europe
First-of-its Kind Offer in Europe 2 1st entertainment superapp in Europe "Watch more, listen more, read more" → Integrated cross-media platform with video, music, podcasts, audiobooks and e-magazines → Available on all devices → Curation facilitating content discovery “The ability to offer more than
Slide 52: A Game-Changing Partnership in Germany
A Game-Changing Partnership 2 in Germany RTL Ambition Deezer Benefits RTL Streaming targets by 20261 → Co-branding 10m → Significant distribution and marketing Paying Subscribers commitment from RTL €1bn Revenue ~€600m Content investment p.a. Source: Company information. 52 (1) Public Target from RT
Slide 53: Ambitious Business Development Plans in Large Markets
Ambitious Business Development 3 Plans in Large Markets France Brazil Germany US UK Canada Italy Spain Market Size (2027E) $1.8bn $1.1bn $2.8bn $20.9bn $3.6bn $1.5bn $1.0bn $0.7bn Deezer’s Market Share 28% 16% 1% <1% <1% <1% 1% 1% (Dec-21) Market Access Further partnerships identified and being eval
Slide 54: Untapped Potential in New Verticals
Untapped Potential in New Verticals 3 Largely mastered and addressed, Recent successes unlocking Identified yet untapped verticals remaining opportunities to capture new opportunities with huge potential Automotive Telcos Media Gaming Hospitality Retail Hardware Finance Our value proposition address
Slide 55: Healthy and Resilient B2C Subscriber Base With Strong Upsides
04 Healthy and Resilient B2C Subscriber Base With Strong Upsides “Follow the Money” - Buddy Guy 55
Slide 56: Large and Loyal B2C Subscriber Base
Large and Loyal B2C Subscriber Base 5.6m €4.6 €300m B2C Subscribers B2C ARPU B2C Revenue (Jun’22) (H1‘22) (LTM Jun-22) 79% 24% B2C Subscriber Base > B2C Adj. Gross 12 months1 Profit (Jun’22) (H1‘22) Source: Company information. 56 (1) Based on billing accounts (excluding trials and subaccounts).
Slide 57: Healthy and Resilient B2C Business
Healthy and Resilient B2C Business B2C Subscribers - EoP B2C ARPU B2C Revenue % growth yoy +6% +8% +10% FR double digit growth offset by Geo Mix Change refocus strategy in RoW Price Increases Lower trials and UK Higher share of family investments FX impact in Brazil m € €m 5.5 5.7 5.6 4.6 300 4.3 4.
Slide 58: B2C Economics Improvements are Only Starting
B2C Economics Improvements are Only Starting IMPLEMENTED 1 Price increases Marketing refocus 58
Slide 59: Price Increase Being Successfully Rolled Out
Price Increase Being Successfully Rolled Out New B2C prices roll-out Price increase subscriptions1 in % of revenue2 58% H1’22 average October 70% 71% 66% 62% 59% 56% 18-Jan November 32% All existing iOS users 11% December Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Source: Company inform
Slide 60: Marketing Refocus
Marketing Refocus B2C marketing1 % total B2C marketing 52 38 34% RoW ~15% FR, BR, DE 42% 66% ~85% 58% % B2C revenue 14% 18% Source: Company information. 60 (1) Excluding royalties for trials and central costs (HQ).
Slide 61: Refocus Already Paying off
Refocus Already Paying off France RoW 1.9x 0.8x LTV/SAC LTV/SAC (H1’22) (H1’22) +9% +82% YoY YoY 61 LTV = 5 year lifetime (x) full-price ARPU (x) B2C Adjusted Gross Margin SAC = (B2C Marketing + Net trial costs) / New leads
Slide 62: Additional Initiatives Underway
Additional Initiatives Underway IMPLEMENTED LAUNCHED 1 Price increases 2 Brand repositioning Marketing refocus Livestreaming 62
Slide 63: Expanding our Brand Towards Younger Demographic
Expanding our Brand Towards Younger Demographic 63
Slide 64: Younger Demographic Represents Greatest Opportunity for Growth
Younger Demographic Represents Greatest Opportunity for Growth In m 16-24 25-34 35-44 45-54 55-64 Internet users 7.2 7.8 8.1 8.4 7.1 Penetration (%) 77% 64% 49% 39% 28% Music streamers1 5.6 5.0 4.0 3.3 2.0 (free + paid) (-) Of which already paying2 (2.5) (2.2) (1.7) (1.4) (0.8) (=) Business Potentia
Slide 65: Livestreaming Opportunity
Livestreaming Opportunity Driift acquisition of Deezer investment in Deezer to become Live streaming market Dreamstage livestreaming this year largest shareholder of expected to reach announced in Sep-22 amounting to ~$7m1 Driift and will fully $5.2bn by 2028E consolidate Driift’s with significant u
Slide 66: Other Revenue Initiatives
Other Revenue Initiatives IMPLEMENTED LAUNCHED PLANNED 1 Price increases 2 Brand repositioning 3 Fandom Marketing refocus Livestreaming New verticals 66
Slide 67: Superfans Are Willing to Pay More
Superfans Are Willing to Pay More Music consumers and their music spending habits “Superfan” average spend per artist3 Does not include music streaming subscription % of Audience % of Spend ~$200 Live gig ticket Album download 27% 39% - 73% 61% ~$1,000 12” Vinyl album Official merchandise Superfans1
Slide 68: New Verticals to Boost Profitability Over the Medium Term
New Verticals to Boost Profitability Over the Medium Term New Verticals Illustrative Economics at Scale • 3 projects under development Subscription Price 100% Competitive pricing • €4m one-off investments for launch in H1 22 • First revenue to be generated in 2023 Payment / Infra Costs ~20% of Rev.
Slide 69: Clear Path to Scale and Profitability
05 Clear Path to Scale and Profitability “Knockin’ On Heaven’s Door” - Guns N’ Roses 69
Slide 70: Financials in Perspective
Financials in Perspective FY’21 €m % of Revenue Revenue 400 Royalties (287) (72)% Fully variable; Recording and publishing rights, mostly contract-based Payment / Infrastructure (29) (7)% Mostly variable; Mainly B2C payment fees; Infrastructure costs of all users Adj. Gross Profit(1) 84 21% Marketin
Slide 71: Unique Business Mix...
Unique Business Mix... B2C B2B New Verticals (71% of ‘21 Rev.) (27% of ’21 Rev.) Economics at Scale Users that subscribed directly through website or mobile application and Users that have access to Deezer’s Streaming-adjacent services such paying directly or through a 3rd party service through a di
Slide 72: ...Paving our Way to Breakeven
...Paving our Way to Breakeven 2021A 2025E Revenue €400m ~€1bn B2C 2.0% Improved B2C marketing efficiency B2B 15.4% Sound B2B profitability New Verticals - Business mix B2C / B2B Adj. Gross Profit after 2.7% Ramp-up New Verticals Marketing(1) (% margin) Staff/G&A €75m % of revenue 18.9% Global busin
Slide 73: Strategy Allowing for Fast and Efficient Scale Up
Strategy Allowing for Fast and Efficient Scale Up Revenue ~€1bn • B2B: Subscribers o Growth of existing partnerships ARPU o Ramp-up of RTL partnership Pipeline o Launch new deals in attractive audio €400m Existing and signed streaming markets across various verticals • B2C: Focus on large and attrac
Slide 74: Clearly Identified Profitability Levers to Achieve Breakeven
Clearly Identified Profitability Levers to Achieve Breakeven • Long-term agreements with labels Gross Profit • Positive impact of new verticals • Focus on large and attractive markets to drive marketing efficiency Brand repositioning and home of music strategy Marketing • • Partnership-led go-to-mar
Slide 75: Attractive Cash Conversion Profile
Attractive Cash Conversion Profile FY ’21, in €m Live Streaming Cash Flow Adj. EBITDA (1) Working Capital Capex Leases Repayment and Other Pre-funding +37 (2) (6) Low capex model with most R&D (11) (47) costs expensed in P&L Includes €7m investments (65) in Driift and Dreamstage Structurally positiv
Slide 76: Guidance and Outlook
Guidance and Outlook Confirmed 2022 Guidance Long-Term Outlook €1bn revenue by 2025E ~€455m Cash flow breakeven in 2024E Revenue EBITDA breakeven by 2025E Fully-funded until cash flow breakeven 76 Source: Company information.
Slide 77: Building a Sustainable Business
06 Building a Sustainable Business “Treasure”- Bruno Mars 77
Slide 78: A Diversified Band
A Diversified Band Why talent joins the band ~650 37% 3y 4m → French Tech Employees Women Average tenure → Music, an attractive industry → International environment ~50% 82% 47 Product & Employee Net → Strong employee pride Nationalities Tech, Data & Promoter Innovation Score → Public Company 5 hubs
Slide 79: Targeted and Ambitious ESG Strategy
Targeted and Ambitious ESG Strategy Environmental Diversity Social Impact Well-Being Impact & Inclusion Through Music • HQ certified HQE (“High • New remote working • Clear Strategy: “All voices • External voices of Quality Environmental charter matter” diversity standard”) • Psychological helpline
Slide 80: Targeted and Ambitious ESG Strategy
Targeted and Ambitious ESG Strategy Environmental Diversity Social Impact Well-Being Impact & Inclusion Through Music • Energy audit of all our • Well-being project kick- • Further training on bias, • Constantly identifying European offices off sexism, micro-aggression and leveraging social • Measur
Slide 81: Employees Rate Us Very Highly
Employees Rate Us Very Highly Best-in-class ratings among the French Tech ecosystem Overall 4.2 3.8 3.9 3.9 3.5 3.6 3.9 3.9 Culture & Values 4.3 3.9 4.1 4.0 3.4 3.7 3.6 3.6 Diversity & Inclusion 4.3 4.0 3.9 4.0 3.9 3.9 4.1 3.8 Work / Life Balance 4.3 3.6 4.3 4.1 3.4 3.5 3.7 3.8 Senior Management 3.7
Slide 82: Highly Skilled, Complementary & Diversified Board
Highly Skilled, Complementary & Diversified Board Successful Track Record Complementary Expertise Diverse Music ✔Senior positions and Board members in blue chip companies Tech 5 nationalities ✔Public companies experience Media ✔Seasoned board with average work experience of 30 years Finance 50% Bran
Slide 83: Board Members Biographies (1/2)
Board Members Biographies (1/2) N&R N&R Guillaume d’Hauteville Chairman Iris Knobloch Independent - Vice-Chairwoman Jeronimo Folgueira CEO Extensive experience in investment banking for Vast experience in media, entertainment and diverse Strong competencies across tech and media. CEO of 25y+. Served
Slide 84: Board Members Biographies (2/2)
Board Members Biographies (2/2) A Matthieu Pigasse Independent Amanda Cameron Valérie Accary Independent Strong financial expertise. Currently a Partner at Six-times Grammy nominee, singer, songwriter, Global leader with extensive skills in the media and Centerview and previously served as Global He
Slide 85: Closing Remarks
Closing Remarks 85
Slide 86: Key Takeaways
Key Takeaways Attractive Music Home of Music Unique B2B Capabilities to Streaming Market Product & Content Foster Efficient Expansion • Large and fast-growing market, more • Best-in-class music streaming • Unmatched partner with successful compelling than VOD platform with unique and innovative trac
Slide 87: Q&A
Q&A 87
Slide 88: Appendix
Appendix 88
Slide 89: Historical Financial Performance
Historical Financial Performance Revenue Adjusted Gross Profit1 Adjusted EBITDA1 Cash-Flow Pre-Funding Covid-19 Pandemic €m 400 84 381 379 72 74 Cash flow higher than EBITDA due to benefit of % Margin negative working capital -18% -15% -16% FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 FY 19
Slide 90: Adjusted Financials Reconciliation
Adjusted Financials Reconciliation FYE 31-Dec; €m 2019A 2020A 2021A IFRS Gross Profit 70 62 49 License agreements non recurring expenses - 7 28 Onerous contract depreciation 2 6 8 Adjusted Gross Profit 72 74 84 IFRS Operating Loss (83) (88) (121) Gross Profit adjustments 2 13 36 Depreciation and amo
Slide 91: Capitalization Table
Capitalization Table Number of shares Shareholder structure(1) To the knowledge of the company 92% shareholders under lock-up Theoretical Exercisable Number of voting voting shares1 Free Float rights2 rights3 7.9% Ordinary shares 114,985,655 114,985,655 114,985,655 ex Treasury Shares Access Industri
Slide 92: Free Float Overview
Free Float Overview Non-diluted shareholding % 9.4m 7.9% 16.1m 13.5% 110.2m 92.1% 112.8m 94.3% 119.7m 100% 103.5m 86.5% Freely Transferable Locked-up [.] Number of 6.9m 5.7% shares < 6M 6-9M 9-12M > 12M 5-Jul-22 to 5-Jan-23 5-Jan-23 to 5-Apr-23 5-Apr-23 to 5-Jul-23 From 5-Jul-23 Source: Company info
Slide 93: Outstanding Dilutive Instruments
Outstanding Dilutive Instruments # of Dilutive instruments Strike Price (€) Proceeds (€m) SPAC Dilutive Instruments Market warrants (1:3)1 9,166,666 11.5 105.4 Founders' warrants (1:3)2 219,708 11.5 2.5 Deezer Dilutive Instruments ESOP 14, 15, 15-2 1,904,678 8.24 15.7 ESOP 17 93,148 4.96 0.5 ESOP 18