Universal Music Group (UMG) investor relations material

Strategic priorities and operational execution

• Focused on operational execution with a full slate of distribution deals, including partnerships with Netflix, ESPN, Paramount+, and CBS platforms for WWE, UFC, and Zuffa Boxing.

• Emphasis on maximizing production quality, marketing, and engagement across all platforms, leveraging ESPN's marketing power and global partnerships.

• Live events remain robust, with record-setting attendance and no consumer pullback, supported by a strong financial incentive package (FIP) strategy targeting $380M–$420M by 2030.

• Zuffa Boxing is profitable and growing, with major media deals and over 100 fighters signed, while experiential businesses like the World Cup and Olympics show strong demand.

• UFC 250 at the White House and other high-profile events are being prioritized for global exposure and client engagement.

Fan engagement, distribution, and media rights

• High engagement and global scalability are driven by year-round content, new star development, and institutionalized events with durable repricing power.

• Removing the pay-per-view wall for UFC numbered events has broadened accessibility and increased marketing impact, with no concern about diluting event uniqueness.

• International media rights are expanding, with recent deals in China, Australia, and New Zealand, and 40%-50% AAV increases in Europe and Canada.

• Advertising inventory from streaming deals is being monetized through new media sales teams, working in tandem with partners like Paramount.

Growth initiatives and financial outlook

• Targeting $1.2B in partnership revenue by 2030, up from $475M in 2025, through renewals, new categories, and expanded inventory across UFC, WWE, and other properties.

• Financial incentive payments are a key revenue driver, with robust demand from cities and regions globally, balancing brand growth and economic impact.

• Zuffa Boxing is positioned for consolidation and star creation in a fragmented market, with strong backing and equity milestones tied to performance.

• Experiential hospitality for events like the World Cup and Olympics is seeing strong sales, with optimism for future U.S.-based events.

• Margin expansion is a priority, with a 600 bps increase to 40% targeted for the year, supported by lean cost structure and ongoing investment in talent and product quality.