2022 concluded with a strong quarter, receiving a net of EUR 1,071k in royalties. Traditionally, a larger portion of royalties is paid out in the last two quarters of the year, although this effect has diminished due to streaming royalties being distributed quarterly. Additionally, a one-time settlement for the use of Pythagoras music contributed to the result. Through monitoring and optimization, we discovered a company that has been using “Twilight Zone” (Golden Earring) in a commercial for several years. We reached a settlement with this company, amounting to over EUR 100k for past usage and EUR 30k for each additional year they continue to use the commercial. They have already extended the agreement for 2023. This settlement motivates further investment in monitoring and audits.

The net royalties received in a year will be distributed to you as an investor in two parts:

• In Q4 of each year, you will receive 2/3 of the net royalties.
• The remaining 1/3 will be paid in Q2 of the following year.

For 2022 the distributions amount to 5.62% net return on invested capital. 3.55% was paid out in Q4 2022. The second part (the remaining 2.07%) is paid to you in June 2023.

For 2023, we expect to make a similar distribution as in 2022. On one hand, streaming contributes positively to the results. On the other hand, the capital called for the Barton acquisition remained uninvested for the first 3-4 months of the year because the capital was requested in November, and the acquisition was completed in April. As for the overall trends in the music industry, they remain strong and positive. We will continue to keep you informed about these developments through future newsletters.