Universal Music Group N.V. · EURONEXT:UMG
Universal Music — Shareholder Meeting (May 2022)
73 slides from Universal Music's shareholder meeting presentation, May 12, 2022
Slide 1: Universal Music Group Annual General Meeting
05 12 UNIVERSAL MUSIC GROUP ANNUAL GENERAL MEETING
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains statements that may constitute the 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. Thes
Slide 3: Judy Craymer CBE, Chairman of the Board
JUDY CRAYMER CBE 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 2021
AGENDA ITEM 2 DISCUSSION OF THE ANNUAL REPORT 2021
Slide 6: Sir Lucian Grainge CBE, Chairman & CEO
SIR LUCIAN GRAINGE CBE CHAIRMAN & CEO UNIVERSAL MUSIC GROUP
Slide 7: Universal Music Group
MUSIC |= UNIV SAL UNIVERSAL MUSIC GROUP
Slide 8: UMG is committed to building a sustainable business
UMG is committed to building a sustainable business and harnessing the collective power of our people, artists, and fans to protect the planet and create an equitable future for generations to come.
Slide 9: UMG is a category of one
UMG IS A CATEGORY OF ONE RECORDED MUSIC MUSIC PUBLISHING #1 #2 >3M RECORDINGS NEARLY 4M OWNED & ADMINISTERED TITLES MUSIC MUSIC BASED MERCHANDISING VISUAL ENTERTAINMENT 10,000s OF HOURS OF VIDEOS #1 >250 ARTISTS / BRANDS #1 >4 TRILLION MINUTES OF CUMULATIVE WATCH TIME OF UMG CONTENT ON YOUTUBE Sourc
Slide 10: 8 of the top 10 global artists in 2021
8 OF THE TOP 10 GLOBAL ARTISTS IN 2021 IFPI GLOBAL ARTIST CHART 2021 1 BTS 2 Taylor Swift 3 Adele 4 Drake 5 Ed Sheeran 6 The Weeknd 7 Billie Eilish 8 Justin Bieber 9 Seventeen 10 Olivia Rodrigo Source: IFPI
Slide 11: 2021 global artist success
2021 GLOBAL ARTIST SUCCESS SPOTIFY APPLE MUSIC YOUTUBE DEEZER 4 OF THE TOP 5 THE WEEKND 8 OF THE TOP 10 THE TOP 4 GLOBAL ARTIST OF THE YEAR AND THE TOP 3 GLOBAL ARTISTS OF 2021 GLOBAL ALBUMS H.E.R. MOST SUBSCRIBED ARTISTS THE WEEKND AFTER HOURS OLIVIA RODRIGO SOUR TAYLOR SWIFT SONGRWRITER OF THE YEA
Slide 12: 2021 U.S. success
2021 U.S. SUCCESS UMPG THE TOP 6 THE TOP 5 3 OF THE TOP 5 THE TOP 4 ARTISTS ALBUMS SINGLES SINGLES TOP ARTISTS: TOP ALBUMS: UMG TOP SINGLES: UMPG TOP SINGLES: DRAKE MORGAN WALLEN THE WEEKND & ARIANA DUA LIPA OLIVIA RODRIGO OLIVIA RODRIGO GRANDE “LEVITATING” THE WEEKND POP SMOKE “SAVE YOUR TEARS” TAY
Slide 13: 2021 regional success
2021 REGIONAL SUCCESS UNITED KINGDOM: GERMANY: FRANCE: JAPAN: 7 OF THE NO.1 SPOTIFY’S TOP BILLBOARD’S TOP 10 SINGLE STREAMED TOP SELLING ARTISTS OF THE YEAR ALBUM ARTIST OF THE YEAR & DAMSO NATHAN EVANS “WELLERMAN” QALF INFINITY NO. 1 ALBUM OLIVIA RODRIGO TAYLOR SWIFT & OUR ARTISTS WON BTS DRAKE & T
Slide 14: Established artists are choosing to expand partnerships with UMG
ESTABLISHED ARTISTS ARE CHOOSING TO EXPAND PARTNERSHIPS WITH UMG 2018 2022 TAYLOR SWIFT J BALVIN AEROSMITH BTS THE WEEKND Exclusive global multi-year Multi-faceted exclusive Expansive worldwide alliance Expanded from Japanese only Expanded long-term agreement recording agreement (Republic agreement
Slide 15: Strategic opportunities in an evolving marketplace
STRATEGIC OPPORTUNITIES 1. BROADEN ARTIST PARTNERSHIPS IN AN EVOLVING 2. REDEFINE MARKETING & DISCOVERY MARKETPLACE WITH DATA & INSIGHTS 3. FURTHER SUPPORT INDEPENDENT ARTISTS, LABELS & PRODUCERS 4. ACCELERATE PRESENCE IN HIGH-GROWTH MARKETS 5. ADVANCE LEADERSHIP IN AUDIO-VISUAL CONTENT CREATION 6.
Slide 16: Boyd Muir, EVP, CFO & President of Operations
BOYD MUIR EVP, CFO & PRESIDENT OF OPERATIONS UNIVERSAL MUSIC GROUP
Slide 17: FY 2021 Summary Results
FY 2021 SUMMARY RESULTS (€ MILLION) REVENUE ADJUSTED ADJUSTED OPERATING ADJUSTED EBITDA EBITDA MARGIN PROFIT EPS €8,504 €1,788 21.0% €1,399 €0.70 +17.0% YOY +20.9% YOY +0.9 PP YOY +15.4% YOY + € 0.13 YOY Note: All growth rates are in constant currency.
Slide 18: Sustained growth of revenue, adjusted EBITDA and margin
SUSTAINED GROWTH OF REVENUE, ADJUSTED EBITDA AND MARGIN (€ MILLION) 2,000 25.0% 1,800 21.0% 20.1% 1,600 20.0% +17.0% 17.7% 1,400 +5.1% 1,200 16.3% +20.9% 15.0% +15.6% 1,000 +19.3% 8,504 +26.4% 1,788 7,159 7,432 800 10.0% 1,497 6,023 600 1,272 983 400 5.0% 200 - 0.0% 2018 2019 2020 2021 2018 2019 202
Slide 19: FY 2021 Revenue
FY 2021 REVENUE (€ MILLION) BY SEGMENT +17.0% 8,504 9,000 RECORDED MUSIC BEST SELLERS 363 8,000 7,432 +27.4% 292 1,335 2020 2021 7,000 1,186 +15.0% 6,000 The Weeknd Olivia Rodrigo Billie Eilish BTS 5,000 Post Malone Justin Bieber Lil Baby The Weeknd 4,000 Pop Smoke Morgan Wallen +16.9% 6,822 BTS ABB
Slide 20: FY 2021 Recorded Music Revenue
FY 2021 RECORDED MUSIC REVENUE (€ MILLION) BY TYPE BY GEOGRAPHY 4% 13% 3% 13% 16% 50% 5% 66% 30% SUBSCRIPTION & STREAMING DOWNLOADS NORTH AMERICA EMEA PHYSICAL LICENSING ASIA LATIN AMERICA REST OF THE WORLD Note: All growth rates are in constant currency.
Slide 21: Free Cash Flow
FREE CASH FLOW (€ MILLION) - Dividend policy: 50% of net income - 2021 interim dividend: €0.20/share - Final dividend proposal 2021: €0.20/share 275 - Total 2021 dividend: €0.40/share (364) 85 (255) (388) (3) (86) (17) 1,399 (8) 1,140 638 Operating Adjustments* Royalty advance Other Income Net cash
Slide 22: Net Debt 2021
NET DEBT 2021 (€ MILLION) Net Debt Development • Free cash flow of €638 million • Debt - 5 year term loan €1 billion 5 - RCF €2 billion 638 (785) • Closing net debt of €2,010 million (1,868) (2,010) • Net leverage of 1.2x (Net debt / EBITDA) Net debt Free cash Dividend* FX/Other Net debt 31/12/2020
Slide 23: Q1 FY22 Summary Results
Q1 FY22 SUMMARY RESULTS (€ MILLION) REVENUE ADJUSTED ADJUSTED EBITDA EBITDA MARGIN €2,199 €455 20.7% +16.5% YOY +14.0% YOY (1.2 PP) YOY Note: All growth rates are in constant currency.
Slide 24: Q&A
Q&A
Slide 25: Agenda Item 3: Remuneration Report 2021
AGENDA ITEM 3 DISCUSSION OF AND ADVISORY VOTE ON THE REMUNERATION REPORT 2021
Slide 26: Q&A
Q&A
Slide 27: Remuneration Report 2021 (Advisory Voting Item)
REMUNERATION REPORT 2021 (ADVISORY) VOTING ITEM
Slide 28: Agenda Item 4: Financial Statements 2021
AGENDA ITEM 4 DISCUSSION AND ADOPTION OF THE FINANCIAL STATEMENTS 2021
Slide 29: Auditor Partners, EY and Deloitte
JEAN-LOUIS GEUTJES PARTNER AT ERNST & YOUNG ACCOUNTANTS LLP INGRID BUITENDIJK PARTNER AT DELOITTE ACCOUNTANTS B.V.
Slide 30: Q&A
Q&A
Slide 31: Financial Statements 2021 Voting Item
FINANCIAL STATEMENTS 2021 VOTING ITEM
Slide 32: Agenda Item 5: Dividend
AGENDA ITEM 5 DIVIDEND
Slide 33: Agenda Item 5A: Discussion of Dividend Policy
AGENDA ITEM 5A DISCUSSION OF DIVIDEND POLICY
Slide 34: Q&A
Q&A
Slide 35: Agenda Item 5B: Adoption of the Dividend Proposal
AGENDA ITEM 5B ADOPTION OF THE DIVIDEND PROPOSAL
Slide 36: Q&A
Q&A
Slide 37: Dividend Proposal Voting Item
DIVIDEND PROPOSAL VOTING ITEM
Slide 38: Agenda Item 6: Discharge
AGENDA ITEM 6 DISCHARGE
Slide 39: Agenda Item 6A: Discharge of the Executive Directors
AGENDA ITEM 6A DISCHARGE OF THE EXECUTIVE DIRECTORS
Slide 40: Q&A
Q&A
Slide 41: Discharge of the Executive Directors
DISCHARGE OF THE EXECUTIVE DIRECTORS VOTING ITEM
Slide 42: Agenda Item 6B: Discharge of the Non-Executive Directors
AGENDA ITEM 6B DISCHARGE OF THE NON-EXECUTIVE DIRECTORS
Slide 43: Q&A
Q&A
Slide 44: Discharge of the Non-Executive Directors
DISCHARGE OF THE NON-EXECUTIVE DIRECTORS VOTING ITEM
Slide 45: Agenda Item 7: Appointment of Non-Executive Directors
AGENDA ITEM 7 APPOINTMENT OF NON-EXECUTIVE DIRECTORS
Slide 46: Appointment of Bill Ackman as Non-Executive Director
APPOINTMENT OF BILL ACKMAN AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 47: Q&A
Q&A
Slide 48: Appointment of Bill Ackman as Non-Executive Director
APPOINTMENT OF BILL ACKMAN AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 49: Appointment of Nicole Avant as Non-Executive Director
APPOINTMENT OF NICOLE AVANT AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 50: Q&A
Q&A
Slide 51: Appointment of Nicole Avant as Non-Executive Director
APPOINTMENT OF NICOLE AVANT AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 52: Appointment of Cyrille Bolloré as Non-Executive Director
APPOINTMENT OF CYRILLE BOLLORÉ AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 53: Q&A
Q&A
Slide 54: Appointment of Cyrille Bolloré as Non-Executive Director
APPOINTMENT OF CYRILLE BOLLORÉ AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 55: Appointment of Sherry Lansing as Non-Executive Director
APPOINTMENT OF SHERRY LANSING AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 56: Q&A
Q&A
Slide 57: Appointment of Sherry Lansing as Non-Executive Director
APPOINTMENT OF SHERRY LANSING AS NON-EXECUTIVE DIRECTOR VOTING ITEM
Slide 58: Agenda Item 8: 2022 UMG Global Equity Plan
AGENDA ITEM 8 2022 UNIVERSAL MUSIC GROUP GLOBAL EQUITY PLAN
Slide 59: Anna Jones, Chair of the Remuneration Committee
ANNA JONES CHAIR OF THE REMUNERATION COMMITTEE & INDEPENDENT NON-EXECUTIVE DIRECTOR
Slide 60: Agenda Item 8A: Share Issuance and UMG LTIP
AGENDA ITEM 8A Issuance of all such (rights to subscribe for) shares in the Company up to a maximum of 5% of the issued share capital of the Company as at the date of this annual General Meeting and, to the extent necessary, exclusion of the statutory pre-emptive rights with regard to such (rights t
Slide 61: Q&A
Q&A
Slide 62: Issuance of Rights to Subscribe for Shares
ISSUANCE OF ALL SUCH (RIGHTS TO SUBSCRIBE FOR) SHARES IN THE COMPANY VOTING ITEM
Slide 63: Agenda Item 8B: Award of Shares to Executive Directors
AGENDA ITEM 8B Approval to award (rights to subscribe for) shares in the Company to the Executive Directors as (i) annual Long-Term Incentive grants under the Remuneration Policy for Executive Directors and (ii) special grants to the Executive Directors.
Slide 64: Q&A
Q&A
Slide 65: Approval to Award Rights to Subscribe for Shares
APPROVAL TO AWARD (RIGHTS TO SUBSCRIBE FOR) SHARES IN THE COMPANY VOTING ITEM
Slide 66: Agenda Item 9: Board Designated to Repurchase Own Shares
AGENDA ITEM 9 DESIGNATION OF THE BOARD AS THE COMPETENT BODY TO REPURCHASE OWN SHARES
Slide 67: Q&A
Q&A
Slide 68: Repurchase of Own Shares
REPURCHASE OF OWN SHARES VOTING ITEM
Slide 69: Agenda Item 10: Re-appointment of External Auditors
AGENDA ITEM 10 RE-APPOINTMENT OF THE EXTERNAL AUDITORS FOR THE FINANCIAL YEAR 2022
Slide 70: Q&A
Q&A
Slide 71: Re-appointment of External Auditors for 2022
RE-APPOINTMENT OF EXTERNAL AUDITORS FOR 2022 VOTING ITEM
Slide 72: Agenda Item 11: Any Other Business
AGENDA ITEM 11 ANY OTHER BUSINESS
Slide 73: Agenda Item 12: Closing
AGENDA ITEM 12 CLOSING UNIVERSAL MUSIC GROUP
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