Exhibit 99.1
I N VE STO R PR E S E N TATI O N M AY 2 0 23
Forward Looking Statements This presentation contains “forward - looking statements” for purposes of the safe harbor provisions under the U.S. Private securities litigation reform act of 1995, as amended. These forward - looking statements are generally identified by words such as “anticipate,” “believe,” continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “seem,” “seek,” “future,” “outlook,” “model,” “target,” “goal,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “would,” “will” or words of similar meaning that predict or indicate future events or trends or that are not statements of historical facts. These forward - looking statements may include, among other things, statements about future financial condition and results of operations, plans, objectives, strategies, beliefs, expectations and intentions with respect to, among other things, future opportunities for reservoir’s business, growth initiatives and market opportunities, competitive landscape, prospective performance, revenues, products, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash and capital expenditures. Such forward - looking statements are based upon the current beliefs and expectations of reservoir’s management and are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially, and potentially adversely, from any forward - looking statements and the assumptions on which these forward - looking statements are based. There can be no assurance that the information contained in this presentation is reflective of future results, performance and/or achievements to any degree. These forward - looking statements are provided for illustrative purposes only, and you are cautioned not to place undue reliance on these forward - looking statements as a guarantee, assurance or prediction of future results, performance and/or achievements as these forward - looking statements are based on estimates and assumptions, whether or not identified in this presentation, that are inherently subject to various significant risks, uncertainties, contingencies and other factors, many of which are difficult to predict and generally beyond the control of Reservoir. There may be additional risks and other factors that reservoir does not currently know or that Reservoir currently believes are immaterial that could also cause actual results, performance or achievements of Reservoir to differ from those contained in these forward - looking statements. Consequently, there can be no assurance that the actual results, performance and achievements anticipated in this presentation will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, reservoir. Additional information concerning these and other factors that may impact the business, prospects, financial condition and/or results of operations discussed in this presentation can be found in Reservoir’s periodic reports or other filings with the SEC, which are available publicly on the sec’s website at www.sec.gov. All information set forth in this presentation speaks only as of the date hereof or the date of such information, as applicable, and reservoir expressly disclaims any intention or obligation to update any forward - looking statements as a result of developments occurring after the date of this presentation. These forward - looking statements should not be relied upon as representing Reservoir’s assessments as of any date subsequent to the date of this presentation and, accordingly, undue reliance should not be placed upon these forward - looking statements. Financial Information; Non - GAAP Financial Measures This presentation contains unaudited financial information of reservoir. The unaudited financial information has been prepared on the same basis as Reservoir’s audited financial statements and, in the opinion of reservoir’s management, reflects all adjustments necessary for the fair presentation of the unaudited financial information. However, the unaudited financial information contained in this presentation is preliminary and may be subject to change. Accordingly, such financial information may be adjusted or may be presented differently in periodic reports or other filings filed by Reservoir with the SEC, and such differences may be material. In addition, past performance is not a guarantee or indication of future financial condition and/or results of operations and should not be relied upon for such reason. This presentation also includes certain financial information, such as EBITDA or Adjusted EBITDA, that has not been prepared in accordance with united states generally accepted accounting principles (“GAAP”). Reservoir’s management uses these non - GAAP financial measures to evaluate Reservoir’s operations, measure its performance and make strategic decisions. Reservoir believes that the use of these non - GAAP financial measures provides useful information to investors and others in understanding Reservoir’s results of operations and trends in the same manner as reservoir’s management and in evaluating Reservoir’s financial measures as compared to the financial measures of other similar companies, many of which present similar non - GAAP financial measures. However, these non - GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by reservoir’s management about which items are excluded or included in determining these non - GAAP financial measures and, therefore, should not be considered as a substitute for net income, operating income or any other operating performance measures calculated in accordance with GAAP. Using such non - GAAP financial measures in isolation to analyze Reservoir’s business would have material limitations because the calculations are based on the subjective determination of reservoir’s management regarding the nature and classification of events and circumstances that you may find significant. In addition, although other companies in Reservoir’s industry may report measures titled EBITDA or Adjusted EBITDA or similar measures, such non - GAAP financial measures may be calculated differently from how reservoir calculates such non - GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, you should consider such non - GAAP financial measures alongside other financial performance measures and other financial results presented in accordance with GAAP. You should review Reservoir’s audited and unaudited consolidated financial statements contained in its periodic reports or other filings with the SEC. Disclaimer 2
Disclaimer 3 Industry and Market Data The information in this presentation also includes information provided by third parties. None of Reservoir, its affiliates or any third parties that provide information to Reservoir or its affiliates, such as market research firms, guarantee the accuracy, completeness, timeliness or availability of any information or are responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or the results obtained from the use of such information. While such information is believed to be reliable for the purposes of this Presentation, neither Reservoir nor any of its subsidiaries, stockholders, partners, members, affiliates, directors, officers, employees, advisers, representatives or agents makes any representation or warranty with respect to the accuracy of such information. No Offer or Solicitation This presentation is for informational purposes only and is neither an offer to sell or purchase, nor a solicitation of an offer to sell, purchase or subscribe for, nor a recommendation or advice regarding, any securities in any jurisdiction. This Presentation has not been approved or recommended by the U.S. Securities and Exchange Commission (the “SEC”) or any other federal or state securities commission or securities regulatory authority or other regulatory body or authority, nor has any of these bodies or authorities passed upon the merits of, or the accuracy and adequacy of, any of the information contained in this presentation. Any representation to the contrary is a criminal offense. Trademarks, Service Marks and Trade Names Reservoir and its affiliates own or have rights to various trademarks, service marks and trade names that they use in connection with the operation of its business. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this Presentation is not intended to imply a relationship with Reservoir or any of its affiliates, or an endorsement or sponsorship by or of Reservoir or any of its affiliates. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that Reservoir, its affiliates or any third parties whose trademarks, service marks or trade names, as the case may be, are referenced herein will not assert, to the fullest extent under applicable law, their rights or the right of the applicable licensor in these trademarks, service marks and trade names. Additional information with respect to Reservoir may be found in its filings with the SEC available at the SEC’s website at www.sec.gov and on Reservoir’s website at www.reservoir - media.com.
First U.S. - Based Publicly Traded Independent Music Company Music Pu b li sh i n g 1 69% Recorded Music & Other 1 31% KEY FACTS • NASDAQ: RSVR • Market Cap: $416M (at 03/31/23) • Fiscal Year End: Mar 31 st • Shares Outstanding: 64M • 150K+ Copyrights • 36K+ master recordings • Offices in NYC (HQ), LA, Nashville, London, Toronto, & Abu Dhabi 4 Leading, diversified music publishing and recorded music business • Vast collection of iconic hits across genre, geography, and time period • Focused on acquiring catalogs with hit songs and building portfolio diversification • Investing in frontline songwriters and artists with potential for success • Network of joint venture, administration and distribution partners worldwide Highly accomplished, respected and award - winning platform • Music Week Awards’ Independent Publisher of the Year 2020 & 2022 • Music Business Worldwide’s The A&R Awards’ Publisher of the Year 2017 & 2019 • 18 Songwriters Hall of Fame inductions REVE NUE First female founded and led publicly traded music company in the U.S., led by Golnar Khosrowshahi • Billboard’s Women In Music Executive of the Year 2022 • Billboard’s Most Powerful Women in Music 2017, 2018, 2019, & 2020; Inducted into the Hall of Fame in 2023 • Billboard’s Power List 2020, 2022, 2023 • Supported by a highly experienced team of music professionals with decades of experience at major music companies such as Universal, Warner, and Sony 1 Trailing twelve - month revenue ended 03 - 31 - 23
1 As of 03 - 31 - 23 2 Wall Street Research 3 Based on 80% of LTM as of 03/31/23 Net Publisher Share (NPS) and Net Label Share (NLS) Compelling Investment Highlights Leading Independent Music Company With Proven Platform • $876M of invested capital since inception 1 • $722M of that amount in acquisitions of catalogs and companies • $154M of that amount in futures spend with enhanced risk/return profile vs. traditional catalog music Evergreen Catalog & Contemporary Hits • 150K+ copyrights and 36K+ masters • 130+ active songwriters and frontline artists • 90% of publishing & 100% of recording gross profit is Life of Copyright 3 Proven M&A Platform • Strong track record, trusted partner to artist community and caretaker of legacy assets • Deal pipeline includes 250+ potential targets worth over $2.0B+ as of 03 - 31 - 23 Strong Growth & Operating Leverage Model • Expected to outgrow music industry fundamentals • Significant operating leverage opportunity as company scales Growing Industry, Supported By Powerful Secular Tailwinds • Supported by rise of digital, streaming, emerging markets, and expansion of emerging music monetization platforms • Music industry projected to grow over 7% per year through 2030 2 Competitive Advantages & Value Enhancement Capabilities • Value enhancement efforts lead to industry outgrowth • Experienced creative team with stellar reputation among artists and key players in the music industry 5
Music 101 MUSIC PUBLISHING ARTISTS SONGWRITERS FOREIGN SUB - PUBLISHERS RECORD LABELS PERFORMING RIGHTS ORGANIZATIONS DIGITAL SERVICES THIRD PARTIES PUBLISHER • CATALOG • FUTURES RECORDED MUSIC CONSUMERS PLATFORMS RECORD LABEL ARTISTS 6
7 History of Growth
D i g it a l 53% Pe rf o r mance 20% S y nc h 19% Ot he r 5% M echan i cal 4% CATALOG EXAMPLES Legacy: Active Songwriters: • Joni Mitchell • Offset (Migos) • The Isley Brothers • Ali Tamposi • John Denver • 2 Chainz • Billy Strayhorn • Oak Felder • Commodores • Jamie Hartman 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. No Musical Composition Accounts for > 3% OF REVENUE 97% of Catalog has a Retention Date of > 10 YEARS with 90% for Life of Copyright 1 US A 60% E x - US A 40% DIVERSIFIED BY…. 2010s - Toda y 29% 2000 s 28% 1990 s 13% 1980 s 6% 1970 s 11% 1960 s 7% Pr e - 60s 6% Pop 21% F ilm/ T V 20% R&B 17% Coun try 15% Hip Hop 9% Electronic 3% Rock 9% Ot he r 6% 1 Based on 80% of LTM Net Publisher Share (NPS) as of 12 - 31 - 22 2 Trailing twelve - month revenue ended 03 - 31 - 23 GEOGRAPHY 2 MIX 2 GENRE 1 RELEASE DATE 1 150K+ COPYRIGHTS (I.E. Ownership Of Musical Composition) Music Publishing Segment Overview 8
1 LTM Net Publisher Share (NPS) as of 12 - 31 - 22 1,114 Songs Account For 80 % of L T M NPS with No Song Accounting For More Than 3% of LTM NPS 5 6 9 10 1 2 3 4 7 8 “It’s Your Thing” The Isley Brothers 2.2%, (1969) “Bring Me To Life” Evanescence 0.62%, (2003) “Gimme More” Britney Spears 0.6%, (2007) “Georgia On My Mind” Ray Charles 0.5%, (1930) “Disco Inferno” The Trammps 0.5%, (1976) “Higher & Higher” Jackie Wilson 0.8%, (1967) “Take Me Home, Country Roads” John Denver 1.1%, (1971) “Ring of Fire” Johnny Cash 0.8%, (1963) “Yeah!” Usher 0.7%, (2004) Music Publishing Top 10 Songs by NPS 1 9 “Lady M a rm a l a de” Labelle 0.9%, (1974)
Legacy: Active Recording Artists: • De La Soul • Sinéad O’Connor • Naughty by Nature • Generation X (Billy Idol) • • The Delfonics • Ben Harper • Laura Marling Liz Phair • Emeli Sandé • William The Conqueror 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 Records in 2021. REVENUE MIX 2 Digital 66% Physical 17% Synch 8% Neighboring Rights 9% 1 Based on 80% of LTM Net Label Share (NLS) as of 12 - 31 - 22 excluding “Gangsta’s Paradise” 2 Trailing twelve - month revenue ended 03 - 31 - 23 100% OWNERSHIP of Each Master Recording Typically No Master Recording Accounts for > 6% OF NET LABEL SHARE 1 36K+ SOUND RECORDING COPYRIGHTS (I.E. “Master” Recordings) Recorded Music Segment Overview CATALOG EXAMPLES 10 GEOGRAPHY 2 EX - U SA 45% USA 55%
234 Recordings Account For 80 % of L T M N LS and 100% are Owned for the Life of the Copyright Recorded Music Top 10 Songs by NLS 1 1 LTM Net Label Share (NLS) as of 12 - 31 - 22 1 2 5 6 9 10 3 7 4 8 “G angs t a ’ s Paradise” Coolio 13.3%, (1995) “The Humpty Dance” Digital Unde r g r o u n d 1.4%, (1989) “The Whole of the Moon” The Waterboys 1.2%, (1985) “I’d Love To Change The World” Ten Years After 1 . 9 % , ( 1971 ) “Jump Around” House of Pain 5.2%, (1992) “Hip Hop Hooray” Naughty By Nature 2.6%, (1992) “The Magic Number” De La Soul 1.8%, (1989) 11 “What It’s Like” Everlast 2.2%, (1998) “Nothing Compares 2 U” Sinéad O’Connor 1.9%, (1990) “Dancing with Myself” Generation X 1.1%, (1981)
Growth Drivers 12 STRONG SECULAR TAILWINDS VALUE ENHANCEMENT INITIATIVES PROVEN M&A PLATFORM & NEW SIGNINGS OPERATING LEVERAGE & CASH FLOW GENERATION
Rise of Digital & Availability of Streaming Digital Revenue CAGR: 13% (2010 - 20) 12% (2020 - 30) Growth Of Paid Streaming Subscribers Paid Subs CAGR: 49% (2010 - 20) 11% (2020 - 30) Growth Of Streaming In Emerging Markets EM to contribute 43% of streaming revenue by 2030 Increased Government Intervention To curb piracy and improve monetization rates for content owners Recovery In Process Across Impacted Royalty Streams (Gym/Bars/Restaurants, Synch, Music Releases, Live Music) Source: Wall Street Research Expansion Of Emerging Music Monetization Platforms Music Industry: Strong Secular Tailwinds 13
1 Wall Street Research Music Industry: Strong Growth Forecasted DIGITAL PE RFOR M ANCE SY NCH PHYSICAL & OTHER 14 INDUSTRY Publishing Recorded Music Paid Streaming Subs $32B $8B $2 4 B 8M 2010 2 5 % 1 5 % 5% 5 5 % $48B $13B $35B 43 4 M CAGR 4% 5% 4% 49% 2020 5 9 % 1 7 % 5% 1 9 % $ 1 15B $23B $9 2 B 1.3B CAGR 9% 6% 10% 11% 2030 7 9 % 4% 6% 12%
VALUE ENHANCEMENT SYNCHRONIZATION Placement of musical compositions into television, film, advertisements, gaming platforms, and toys DIGITAL LICENSING Digital licensing partnerships with emerging music platforms and in - home fitness brands SETTLEMENTS Representation on industry boards advocating for creators generates settlements from past infringement and enables collaboration on mechanisms for future licensing SAMPLING, COVERS, INTERPOLATIONS, REMIXES Extract additional value from high - quality catalogs with proactive pitching EDUCATIONAL INITIATIVES Development of interactive university courses to enhance brand exposure 1 Organic Revenue over Fiscal 2018 - 2023 2 Wall Street Research Organic growth outpaces industry growth RSVR 4 - Year Revenue CAGR 1 13% Industry 2 7% Value Enhancement Initiatives 15
Top Synch Highlights “The Best” “Non, Je Ne Regrette Rien” “ Da y - O” “Lean On” “Take Me Home, Country Roads” Industry Advocate & Leader $13M GENERATED IN SETTLEMENT PAYMENTS Over the Past Five Years (FY19 - FY23) Value Enhancement Examples & Industry Advocacy Totaling IN LICENSING $3M 16 ELECTED BOARD SEATS
$722M CAPITAL DEPLO Y E D since inception 2 91% of GROSS PROFIT & COST SYNERGIES FLOW to EBITDA 3 12% UNLEVERED IRR since 2007 4 1 Based on total offers made, deals into exclusivity, and deals closed as a percentage of new deals considered in FY2022, respectively 2 As of 03 - 31 - 23 3 For the period FY18 - FY23 4 IRR represents a net return on invested capital since inception (2007) by the majority shareholder marking the investment to market upon close of SPAC merger 250+ M&A TARGETS IN CURRENT PIPELINE AS OF 03 - 31 - 23 Totaling $2.0B+ Proven M&A Platform 42% 60 DEALS INTO EXCLUSIVITY 26% 232 New Deals Considered In FY2023 17 97 OFFERS MADE 1 1 55 DEALS CLOSED 24 % 1
Note: Reflects transactions of +$6M in value that are at least 12 months old as of 03 - 31 - 23 and did not contain young assets expected to decay at closing Proven M&A Platform 15.7x WEIGHTED AVERAGE ENTRY MULTIPLE 3.2x WEIGHTED AVERAGE REDUCTION IN MULTIPLE VALUE ENHANCEMENT LEADS TO BOUGHT - DOWN MULTIPLES Da te Purchase Price NPS/NLS (At Close) Multiple (At Close) NPS / NL S (FY2023) Multiple ( FY2023) 2021 $ 101.3 $ 5.5 18.3 x $ 9.0 11.2 x 2020 $ 61.4 $ 3.6 17.0 x $ 4.2 14.8 x 2020 $ 60.2 $ 3.2 18.8 x $ 2.9 20.7 x 2019 $ 50.1 $ 3.5 14.5 x $ 7.6 6.6 x 2014 $ 44.0 $ 4.3 10.3 x $ 4.5 9.8 x 2018 $ 30.7 $ 2.5 12.4 x $ 3.7 8.3 x 2021 $ 16.8 $ 1.0 17.1 x $ 1.2 14.5 x 2020 $ 16.4 $ 1.3 13.0 x $ 1.2 13.1 x 2021 $ 13.7 $ 0.8 18.1 x $ 0.8 17.1 x 2012 $ 11.0 $ 0.9 12.0 x $ 1.0 11.6 x 2021 $ 9.5 $ 0.6 16.1 x $ 0.6 14.7 x 2022 $ 9.4 $ 0.6 16.8 x $ 0.7 12.9 x 2010 $ 8.4 $ 1.5 5.4 x $ 2.2 3.7 x 2017 $ 7.8 $ 0.6 13.3 x $ 0.6 13.7 x 2021 $ 6.7 $ 0.4 15.9 x $ 0.6 11.0 x 2020 $ 6.0 $ 0.4 16.0 x $ 0.5 11.6 x 18
Advance funds to established songwriters who are then under exclusive contract to create music with the benefit of long - term ownership. NOTABLE SIGNINGS • Ali Tamposi • Migos • 2 Chainz • Danja • James Fauntleroy • Jamie Hartman • A Boogie Wit Da Hoodie • Joyner Lucas PARTNERED WITH SONGWRITERS BEHIND HITS BY TODAY’S BIGGEST ARTISTS INCLUDING • Justin Bieber • Ed Sheeran • Ariana Grande • Bruno Mars $154M+ CAPITAL DEPLOYED 1 3 YEAR TYPICAL TERM CONTRACT ALL SIGNIFICANT WRITER SIGNINGS HAVE POSITIVE IRR 2 20.2% WEIGHTED AVERAGE IRR 2 1 As of 03 - 31 - 23 2 Based on significant writer signings, which include investments of greater than $2.5M and as of 03 - 31 - 23 New Roster Signings 19
As of 03 - 31 - 23, writer signings with more than $2.5M invested IRRs based on actual performance to date and projected performance through end of deal 2011 deal for $6.5m recouped and futures created during deal were purchased 2018 deal for $8.9m includes reverting NPS, added pro - forma above, to be coming into the deal in the coming years 2021 deal for $3.1m is a masters net profit - based deal 2019 deal for $9.0m, 2012 deal for $8.3m, 2019 deal for $4.8m, and 2021 deal for $2.5m are all new or amended deals in Fiscal 2023 New Roster Signings 9.8x EFFECTIVE CURRENT MULTIPLE 20.2% IRR ON SIGNIFICANT WRITER SIGNINGS 20 FUTURES BASED INVESTMENTS LEAD TO HIGH IRR Da te Advances Recouped (FY2023) NPS / NL S ( FY2023) Multiple ( FY2023) IRR 2016 $ 14.2 50% $ 0.6 12.1 x 12.7% 2017 $ 13.7 82% $ 0.6 3.8 x 33.6% 2019 $ 9.0 71% $ 0.2 11.4 x 20.1% 2018 $ 8.9 35% $ 0.3 20.4 x 2.2% 2012 $ 8.3 88% $ 0.3 3.2 x 27.1% 2014 $ 6.6 73% $ 0.4 4.3 x 50.3% 20 1 1 $ 6.5 100% $ 0.0 N/A 0.8% 2019 $ 4.8 29% $ 0.1 23.0 x 10.5% 2018 $ 3.3 100% $ 0.0 0.0 x 36.3% 2021 $ 3.1 0% N /A N/A 37.3% 2020 $ 3.0 35% $ 0.1 30.1 x 3.2% 2015 $ 2.8 70% $ 0.1 13.8 x 18.5% 2021 $ 2.5 32% $ 0.1 14.5 x 12.1% 2020 $ 2.5 55% $ 0.1 12.3 x 9.5%
• Asset light model • Limited incremental expenses needed as new catalogs are added • Tommy Boy acquisition expanded platform in U.S. for Recorded Music > 91 % of Acquired Gross Profit Should Fall to Adj . EBITDA 1 Core Infrastructure Provides Substantial Operating Leverage as the Business Grows OPERATING LEVERAGE REVENUE EXPENSES Today Future THREE CORE OPERATING EXPENSES GROW FAR LESS THAN NEW REVENUE CORPORATE Leadership, Finance, and M&A ADMINISTRATION Royalty Admin, Copyright, etc. VALUE ENHANCEMENT Synch, Marketing, A&R (relationship) Operating Leverage & Cash Flow Generation 21 1 For the period FY18 - FY23
Financials 22
Q4 and Full Year Fiscal Year 2023 Results 13% total revenue growth in 2023 year - over - year • Music Publishing revenue rose 9% year - over - year • Recorded Music revenue increased 18% year - over - year • Other revenue increased 188% year - over - year $23 $77 $84 $10 $25 $12 $31 $38 Q4'FY22 Q4'FY23 FY 2022 FY 2023 Publishing Recorded Music & Other REVENUE ($M) $41 0.0 . 0 . 7 23 4 1 4 6 6 42 6 42 9 9 75 3 75 3 1 8 0 2 1 0 1 0 1 0 1 222 22 4 5 2 5 2 5 4 5 2 5 3 4 33 4 3 4 3 4 3 4 3 0 1 0 1 0 1 . 3 4 2 5 1 . 9 5 1 9 1 7 5 1 2 6 0 43 0 2 3 0 3 2 4 8 76 543 21 7 654 321 . 9 1 89 4 4 2 5 756 5 4 6 32 1 5 8 2 4 9 6 5 6 55 88 6 8 5 7 5 8 8 6 8 6 8 6 9 6 8 6 6 8 6 . 7 9 8 . 3 7 91 2 9 10 9 7 0 4 1 3 2 8 7 2 65 98 0 . 6 7 8 6 7 4 3 1 2 8 7 9 8 3 3 4 7 4 68 1 53 2 9 1 9 1 1 11 3 2 2 0 1 1 1 . 90 1 1 7 8 1 86 5 4 6 3 2 8 2 0 0 9 9 0 2 9 56 3 0 41 .2 5 32 1 3 3 57 9 56 4 5 2 12 4 4 2 5 9 3 1 1 4 44 4 4 4 6 5 4 7 5 55 5 7 7 6 6 . 5 7 543 7 6 2 9 0 2 78 7 4 6 7 8 1 3 4 7 4 2 7 5 8 1 3 4 9 23 68 21 4 1 6 7 56 3 1 2 1 2 2 7 8 8 8 1 2 9 8 0 9 4 443. 3 1 1 8 012 45 5 6 6 9 43 2 2 1 3 8 9 4 0 32 87 1 . 5 4 9 6 89 3 4 21 5 3 7 2 5 1 43 9 6 5 $46 2 2 22 11 2 1 2 1 2 6 6 6 6 6 5 88 7 55 8 77 5 7 77 8 7 5 55 7 8 . 6 . 5 65 4 6 7 3 98 8 3 6 3 7 24 0 5 .8 9 1 2 857 6 1 2 4 2 5 4 4 43 4 1 7 6 3 2 9 9 0 0 00 0 1 99 . . 24 2 3 7 9 3 6 5 213 5 809 4 021 9 4 5 6 7 4 1 43 6 2 7 2 9 5 8 4 5 8 1 6 1 92 2 23 6 3 2 3 2 3 333 5 33 66 5 3 5 3 444 44 4 2 111 2 1 5 3 . 2 0 79 1 7 4 2 9 5 5 6 4 5 0 8 3 9 0 8 7 6 2 3 5 1 8 0 10 3 . 1 2 3 53 1 4 6 8 1 4 8 8 4 23 2 5 3 7 9 3 7 2 9 3 3 3 3 3 3 8 0 7 0 1 7 8 7 9 7 9 8 6 6 8 6 9 . . 9 8 1 654 321 098 2 5 3 6 8 02 4 7 5 1 7 . 44. 3 6 89 21 4 9 7 3 6 1 45 9 7 8 4 .1 2 4 56 1 4 2 7 9 6 2 8 1 8 3 7 21 5 3 3 9 5 3 4 3 4 3 4 3 3 4 4 4 4 11 122 2 22 2 1 1 2 3 33 33 33 3 3 2 0 8 7 0 34 2 0 3 1 2 5 0 4 0 0 5 2 5 6 4 7 7 1 2 9 4 8 3 3 0 7 1 3 6 7 0 4 9 1 8 9 7 3 5 6 6 3 4 8 1 3 9 2 7 1 67 8 8 5 3 9 4 5 4 2 $15 $15 Q4'FY22 Q4'FY23 FY 2022 FY 2023 ADJUSTED EBITDA ($M) Flat revenue growth in Q4 year - over - year • Music Publishing revenue decreased 8% year - over - y ear • Recorded Music revenue increased 10% year - over - y ear • Other revenue increased 304% year - over - year Signed publishing deals including Armani White, Christian Stalnecker, and a JV with American Idol producer 19 Entertainment Brought De La Soul’s iconic catalog to all streaming platforms Acquired catalogs of Sonny Rollins, Mannie Fresh, and others Issued Fiscal 2024 outlook, including 6% Revenue growth and 9% Adjusted EBITDA growth 23
Strong Growth Track Record & Forecast – Issued Fiscal Year 2024 Outlook ($ in millions) Current Fiscal 2024 Outlook Growth (at mid - point) REVENUE $127 - $132 6% ADJUSTED EBITDA $49 - $52 9% $80 $108 $122 $66 $77 $84 $14 $31 $38 F Y 2 0 21 F Y 2 0 22 F Y 2 0 23 Publishing Recorded Music & Other REV E N U E • Strength & Diversity of Catalog • Value Enhancement Success CORE DRIVERS • Strong Execution in Futures Business • Opportunistic, Accretive M&A
25 Note: Excludes the effect of any non - cash stock - based compensation expense related to the current stock incentive plan. $47 $64 $74 FY2021 FY2022 FY2023 GROSS PROFIT $32 $41 $46 FY2021 FY2022 FY2023 ADJUSTED EBITDA Improving Profitability $ MM $ MM
$35 $40 $54 FY2021 FY2022 FY2023 $ MM ADJUSTED FREE CASH FLOW 1 1 Adjusted Free Cash Flow excludes cash flow used for acquisitions and signings (after de - SPAC) BALANCE SHEET METRICS as of 3 - 31 - 23 TOTAL DEBT: CASH: NET DEBT: CA P AC I T Y : $312M $15M $297M $132M Solid Balance Sheet & Strong FCF Generator
$122 $46 $129 $50 Revenue Adjusted EBITDA 38% 39% Adj. EBITDA Margin FY 2023A FY 2024E 6% Growth • Assumes $ 28 M of reinvestments into new deals for Fiscal 2024 • Assumes a mix of publishing and recorded catalog acquisitions, as well as futures • No additional debt utilized for M&A Strong Growth Outlook & Operating Leverage 27 9% Growth
Append ix 28
Music Publishing 101 IP RIGHTS: • Songs owned by publisher or songwriter • Catalog = previously released songs • Futures = songwriters under active contract who are writing new songs PROTECTED ASPECT OF WORK: • Notes & lyrics RESPONSIBILITY OF PUBLISHER: Monetization & Exploitation • Catalog : identify high - quality legacy catalogs and acquire ownership interest in these catalogs • Futures : find songwriters to sign and develop, nurture their skills and pair them with likeminded collaborators ; may either have ownership interest in copyright or perform services under an administration agreement • Both : pitch songs for use in film, tv, advertising, videogames, and others ; license the right to use the song ; collect royalty fees for usage INCOME: • Royalty income paid on every version of the song typically split between publisher (NPS) and songwriter (writer’s share/royalties) KEY CASH FLOW METRICS Revenue / Gross Royalties ( - ) Writer Royalties = Net Publisher Share (NPS) ( - ) Operating Expenses (Artist & Repertoire, Licensing, G&A, Talent Expense) = EBITDA Amortization Advances Rec oup m en t s Capex 29
Recorded Music 101 IP RIGHTS: • Collection of master recordings owned by a record label or performing artist PROTECTED ASPECT OF WORK: • Sound recording of a composition RESPONSIBILITY OF RECORD LABEL: Monetization & exploitation • Identify songs and work with producers and artists to create, market and promote recordings • Manufacture and distribute physical product • Pitch songs for use in film, TV, advertising, videogames and others; license the right to use the recording; collect royalty fees for usage • Typically owns master recording outright I NCOME : • Royalty income paid only on specific recording of a song • Typically split between label (NLS) and performing artist (artist royalties) KEY CASH FLOW METRICS Revenue / Sales / Royalties ( - ) Artist Royalties ( - ) Manufacturing & Distribution Costs = Net Label Share (NLS) ( - ) Operating Expenses (Artist & Repertoire, Licensing, G&A, Talent Expense) = EBITDA Amortization Advances Rec oup m en t s Capex 30
RSVR Financial Model 101 INFRASTRUCTURE PROVIDES SUBSTANTIAL OPERATING LEVERAGE, ALLOWING US TO ACQUIRE THE GROSS PROFIT CONTRIBUTION OF ADDITIONAL CATALOGS WITHOUT INCREMENTAL EXPENSE 31 LESS: OpEx (A&R, Licensing, G&A, Talent Expense) EB I TD A MUSIC PUBLISHING RECORDED MUSIC REVENUE Revenue / Gross Royalties Revenue / Sales / Royalties COST OF REVENUE LESS: Writer Royalties LESS: Artist Royalties LESS: Manufacturing/Distribution Costs GROSS PROFIT Net Publisher Share (NPS) Net Label Share (NLS) OPERATING EXPENSES EBITDA
FISCAL YEAR END: March 31($ in M) 2019A 2020A 2021A 2022A 2023A Publishing Revenue $43 $53 $66 $77 $84 Recorded & Other Revenue $2 $9 $14 $31 $38 Total Revenue $45 $62 $80 $108 $122 Percentage Growth YoY 40% 38% 29% 35% 13% Net Publisher Share $24 $28 $37 $42 $45 Net Label Share & Other $2 $7 $10 $22 $29 Gross Profit $26 $35 $47 $64 $74 Gross Margin 58% 56% 59% 59% 61% Adj. EBITDA $19 $23 $32 $41 $46 Adj. EBITDA Margin 32% 37% 40% 38% 38% Note: Excludes the effect of any non - cash stock - based compensation expense related to the current option plan Income Statement Highlights 32
FISCAL YEAR END: March 31 ($ in M) 2019A 2020A 2021A 2022A 2023A Cash Flow Highlights Adj. EBITDA $15 $23 $32 $41 $46 Recoupments 10 14 13 13 13 Interest, W/C Changes & Other (13) (5) (9) (14) (5) Cash From Operating (Adj. FCF) $12 $32 $35 $40 $54 Acquisitions (32) (108) ( 1 19) (197) (72) Advances & Other (18) (22) (17) (28) (23) Cash From Investing ($50) ($130) ( $137) ( $225) ($95) Balance Sheet Highlights Ending Cash $9 $58 $9 $18 $15 Ending Debt 105 176 213 276 312 Net Debt $96 $118 $204 $258 $297 Note: Advances moved from Operating to Investing cash flows for illustrative purposes 33 Cash Flow & Balance Sheet Highlights
FISCAL YEAR END: March 31 ($ in M) 2019A 2020A 2021A 2022A 2023A Net Income $ 3.8 $ 9.4 $ 9.3 $13 .1 $2.8 Adjustments Depreciation & Amortization 5.9 9.1 14.1 19.0 22.1 Income Tax Expense / (Benefit) 0.5 4.0 2.1 4.3 5.6 Interest Expense 6.2 5.8 9.0 10.9 14.8 EBITDA $ 16.4 $ 28.3 $ 34.5 $47 .3 $45.2 Operating Adjustments Gain / Loss on Debt Extinguishment 0.0 ( 10 . 6) 0.0 0.0 0.9 Benefit of Forgiven PPP Loan 0.0 0.0 (0.6) 0.0 0.0 Exchange (Gain) / Loss (0.8) 0.1 0.9 (0.3) (0.3) Change in Fair Value of IR Swaps 2.8 5.6 (3.0) (8.6) (2.8) Non - cash Share - based Compensation 0.0 0.0 0.1 2.9 3.2 Share of Earnings in Equity Affiliate (0.0) (0.0) 0.0 0.0 0.0 Adjusted EBITDA $ 18.3 $ 23.2 $ 31.9 $41 .3 $46.3 34 Consolidated EBITDA Reconciliation
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