#1{IN " HIPGNOSIS SONGS FUND Interim results and Capital Markets update 8 December 2022#2" HIPCNOSIS SONGS FUND Cautionary statement The document and all of its contents (together, the "Presentation") is being supplied to you solely for your information and for use at the presentation of the financial results of Hipgnosis Songs Fund Limited and its subsidiaries (together, the "Company") for the six months ended 30 September 2022. No information made available to you in connection with the Presentation may be passed on, copied, reproduced, in whole or in part, or otherwise disseminated, directly or indirectly, to any other person. 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Additionally, forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Forward-looking statements speak only as at the date of this Presentation and, other than in accordance with its legal or regulatory obligations, the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this Presentation, whether as a result of new information, future events or otherwise. No statement in this Presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. Alternative Performance Measures Throughout this Presentation, reference is made to adjusted measures which the Company considers to be alternative performance measures ("APMS"). APMs are used by the Company to analyse the business and financial performance, track the Company's progress and help develop long-term strategic plans and they also reflect more closely the cash flow of the Company. The Company believes that these APMs are used by investors, analysts and other interested parties as supplemental measures of performance and liquidity. 1#3Merck Mercuriadis → FOUNDER AND CHIEF EXECUTIVE OFFICER#4Christine McVie WE WILL LOVE YOU FOREVER CHRISTINE YOU ARE OUR SONGBIRD THANK YOU FOR THE MUSIC For you, CHRISTINE MCVIE 1943-2022 the sun will always be shining HIPGNOSIS 3#5Today's agenda Overview of Performance and Markets Merck Mercuriadis, Founder and Chief Executive Officer Interim results Chris Helm, Chief Financial Officer (SONG) Song Management Ben Katovsky, President and Chief Operating Officer Ted Cockle, Chief Music Officer Q&A " HIPCNOSIS SONGS FUND 4#6Financial highlights Operative NAV per share stable at $1.8312 (Equivalent to 149.82p at Tuesday's exchange rates) Total $ NAV return since IPO of 60.0% " HIPCNOSIS SONGS FUND Gross revenue increased 7.5% year-on-year to $91.7m PFAR grew 4.2% to $120.8m for the year to 30 June 2022 on a yearly basis EBITDA increased by 16.9% year-on-year to $63.8 million New RCF and Interest Rate swaps agreed. FX risk hedged in relation to dividends Net Debt stable at 25.7% Annual target dividend maintained of 5.25p per share; Interim dividend of 1.325 p per share declared DEMONSTRATING THE STRENGTH OF THE PORTFOLIO LO 5#7Operational highlights Portfolio of 146 Catalogues, 65,413 songs Aggregate fair value of $2.67 billion Blink-182's All the Small Things soundtracks the John Lewis Christmas Advert Nicki Minaj's Super Freaky Girl interpolating Rick James' Super Freak was Number 1 US single and Top 5 in the UK and rest of the world Administration partnership for reverted catalogues with Sacem and peermusic Successful trials of multi-territory live performance direct revenue collection CRB III ruling confirmed UNRIVALLED COLLECTION OF ICONIC SONGS DELIVERING VALUE TO SHAREHOLDERS " HIPCNOSIS SONGS FUND#8Hipgnosis Songs Fund High quality Catalogue 24% of songs in Spotify's Billions Club (78/324) Over 10% of RollingStone's The 500 Greatest Songs of All Time (52/500) Almost half of YouTube's Most Viewed music videos of all time (13/30) Proactive Song Management Strong market growth Continued rapid gains in streaming ● New income streams e.g. gaming, social media CRB regulatory tailwinds DELIVERING SUPERIOR VALUE OVER THE MEDIUM TERM " HIPCNOSIS SONGS FUND 7#9Life of a song FINANCIAL TIMES Life of a Song Only Love Can Break Your Heart – how Neil Young's 1970 track launched a band's career The singer's plaintive ballad has been widely covered, and became the first song released by Saint Etienne Neil Young in 1970 Ⓒ Redferns H HIPCNOSIS SONGS FUND 00#10Hipgnosis Songs Fund High quality Catalogue 24% of songs in Spotify's Billions Club (78/324) Over 10% of Rolling Stone's The 500 Greatest Songs of All Time (52/500) Almost half of YouTube's Most Viewed music videos of all time (13/30) Proactive Song Management Strong market growth Continued rapid gains in streaming ● New income streams e.g. gaming, social media CRB regulatory tailwinds DELIVERING SUPERIOR VALUE OVER THE MEDIUM TERM " HIPCNOSIS SONGS FUND C#11Chris Helm CHIEF FINANCIAL OFFICER Hipgnosis Song Management, Investment Advisor to Hipgnosis Songs Fund LTD#12Financial Results Final results for six months to 30 September 2022 " HIPCNOSIS SONGS FUND#13Net Asset Value Operative NAV ($'m) Operative NAV per share ($) GBP Operative NAV per share (pence) As at 30 Sept 2022 2,218 OPERATIVE NET ASSET VALUE STABLE 1.8312 164.06 As at 31 Mar 2022 2,240 1.8491 140.79 " HIPCNOSIS SONGS FUND Change % (1.0) (1.0) 16.5 Based on GBP:USD of 1.2223 as at 6th December 2022, Operative NAV per share is 149.82p 12#14Operative Net Asset Value Bridge $1.85 Opening Operative NAV per Ordinary Share $0.03 Profit After Tax excluding amortisation and impairment of Catalogues ($0.018) Decrease in Fair Value of Catalogues ($0.016) Dividends Paid ($0.015) Dividends Declared not yet paid " HIPCNOSIS SONGS FUND $1.83 Closing Operative NAV per Ordinary Share 13#15Revenue $'m Gross Revenue Net Revenue 6 months to Sep 2022 91.7 78.4 Revenues reflect monies due from recent CRB III ruling $16.1m is the retroactive amount due for previous periods $3.1m reflect the higher rate earned during the period Right To Income (RTI) nil vs $14.1 million in prior year UNDERLYING NET REVENUE UP 5.8% YEAR ON YEAR TO $65.1 MILLION 6 months to Sep 2021 85.3 74.1 " HIPCNOSIS SONGS FUND Change % 7.5 5.8 14#16Pro forma annual revenue (PFAR) $'m PFAR for Catalogues owned as at 30 Sep 2022 <10 years >10 years 12 months to Jun 2022 120.8 50.9 69.9 12 months to Dec 2021 116.6 49.9 66.7 12 months to Jun 2021 115.9 51.0 64.9 " HIPCNOSIS SONGS FUND 12 months to Dec 2020 121.3 < 10 years Catalogues remain stable, reaching the end of the decay profile > 10 years Catalogues up 7.7% year-on-year due to Streaming and Synch growth 57.2 64.1 15#17Estimated currency impact Limited direct impact with 88% of receipts received in US Dollars Approximately 46% of source revenue is non-US Dollar denominated Biggest non-US markets are UK (14%) and Eurozone (21%) Source income by geography 14% UK 54% US Hipgnosis Songs Fund Estimates 21% Continental Europe 11% RoW Sterling: Dollar Euro: Dollar Yen: Dollar " HIPCNOSIS SONGS FUND Average Average Change H1 on H1 Change Q2 on Q2 H12022 H12021 1.298 1.388 6.9% 11.1% 1.093 1.205 10.2% 13.0% 0.00814 0.00928 14.1% 18.4% ESTIMATE CURRENCY IMPACT circa 4 PERCENTAGE POINTS 16#18PFAR split by half year $'m Streaming Income Synchronisation Income Performance Income Mechanical Income Digital Downloads Income Other Publishing Income Producer Royalties Masters Income Six months to Jun 2022 23.56 9.78 13.12 2.47 1.28 1.05 3.83 3.45 58.54 STRONG GROWTH IN STREAMING AND SYNCH Six months to Jun 2021 20.35 7.41 13.73 2.55 1.83 0.91 3.76 3.75 54.29 " HIPCNOSIS SONGS FUND Change % 15.8 32.0 (4.5) (3.2) (29.9) 15.4 1.9 (8.1) 7.8 17#19Costs Adjusted operating costs ($'m) On-going charges (as % age of the average NAV) 6 months to Sep 2022 14.5 1.23 6 months to Sep 2021 18.6 1.77 Contingent Songwriter bonus provision of $3.7 million recognised ON GOING COMMITMENT TO CONTROL COSTS AND MAXIMISE RETURNS " HIPCNOSIS SONGS FUND Change % 21.7 0.5 18#20Leverage Loan interest ($'m) Gross debt at 30 Sept ($'m) Net debt at 30 Sept ($'m) Debt as percentage of Operative NAV Leveraged free cash flow ($'m) Interest costs driven by rise in US interest rates New 5-year, $700 million Revolving Credit Facility with interest rate hedge agreed 6 months to Sept 2022 14.5 607.0 570.6 25.5 30.5 6 months to Sep 2021 10.0 600.0 550.9 26.4 31.9 " HIPCNOSIS SONGS FUND Change % (44.7) (1.2) (3.6) 0.9 (4.4) 19#21Earnings per Share EPS (C) Adjusted EPS* (¢) * adjusted for Amortisation and Non-Finance Charges REDUCTION IN EPS PRIMARILY DUE TO INCREASED INTEREST COSTS 6 months to Sep 2022 (1.66) 3.76 6 months to Sep 2021 (1.69) 3.85 " HIPCNOSIS SONGS FUND Change % (1.9%) (2.4%) 20#22Dividends Total dividend per share (LTM) (pence) Total NAV return since inception (%) As at Sep 2022 5.25 60.0 As at Mar 2022 5.25 59.1 Continue to target total annual dividend of 5.25p per share Sterling: Dollar hedge put in place at an average all-in rate of $1.109 DIVIDEND PAID COVERED BY LEVERAGED FREE CASH FLOW " HIPCNOSIS SONGS FUND Change % n/a n/a 21#23Independent Valuation " HIPCNOSIS SONGS FUND#24Citrin Cooperman Independent valuation is determined by the Board, incorporating estimate of Fair Value provided by Citrin Cooperman • Citrin Cooperman widely respected Music Valuation experts, actively involved in valuation and transactional work across the industry • Never used by SONG to value a catalogue ahead of acquisition Income streams for each catalogue reviewed and forecast for 15 years NPV of cash flows using published discount rate (currently 8.5%) Operative NAV ($'m) Operative NAV per share ($) GBP Operative NAV per share (pence) SONG SPECIFIC DISCOUNT RATE OF 8% As at 30 Sep 2022 2,218 1.8312 164.06 As at 31 Mar 2022 2,240 1.8491 140.79 " HIPCNOSIS SONGS FUND Change % (1.0) (1.0) 16.5 23#25Discount rate evolution Citrin Cooperman take long term view on interest rates Substantial risk premium cushion built between launch and end of 2021 Reduction in risk premium justified by increased quality of earnings and establishment of music as a major asset class 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 mu Apr-19 Jul-19 Oct-19 Jan-20 Jul-20 Apr-20 Jan-21 Oct-20 Jul-21 DISCOUNT RATE ALLOWED RISK PREMIUM CUSHION Apr-21 Oct-21 " HIPCNOSIS SONGS FUND Jan-22 Jul-22 Apr-22 Oct-22 -US Benchmark Bond - 10 Year SONG Discount Rate -Implied 'Risk Premium' 24#26Discount rate calculation Estimates WACC to value cash flows before financing costs - assumes 50:50 equity: debt mix Assumed Cost of Equity: 10.2% Risk-free rate: 4.9% (10-year US Treasury yield 3.829%) Beta: 0.96 ● Equity risk premium: 5.5% Assumed Cost of Debt: 6.9% SONG actual cost of debt: 5.7% PORTFOLIO SPECIFIC DISCOUNT RATE OF 8% " HIPCNOSIS SONGS FUND 25#27Valuation sensitivities SONG Independent portfolio valuation: $2,672 million 0.5% delta increase in discount rate to 9% changes valuation by $212 million 0.5% delta decrease in discount rate to 8% changes valuation by $252 million Discount rate 8.0% Variance to Fair Value 8.50% Variance to Fair Value 9.00% Variance to Fair Value EUR: USD GBP: USD 1.02 1.18 2,894,449 8.3% 2,645,485 (1.0%) 2,435,411 (8.9%) Foreign Exchange Rate 1.12 1.28 2,923.377 9.4% 2,671,881 2,459,673 (7.9%) " HIPCNOSIS SONGS FUND 1.22 1.38 2,952,306 10.5% 2,698,278 1.0% 2,483,936 (7.0%) VALUATION IS SUPPORTED BY RECENT MARKET TRANSACTIONS 26#28Ben Katovsky PRESIDENT AND CHIEF OPERATING OFFICER#29Song Management Licensing and Administration " HIPCNOSIS SONGS FUND#30Song Management Take control Remove middlemen Increase revenues Reduce costs Speed payments MAXIMISING VALUE AT EACH OPPORTUNITY Increase transparency " HIPCNOSIS SONGS FUND 29#31Optimizing licensing and collection Optimizing US licensing and collection via Hipgnosis Songs Group Removes middlemen from collection payment chain Direct execution of licenses with DSPs ● Influence with trade bodies to drive advocacy Optimizing European digital licensing and collection via Sacem Optimizing ex-US collections via peermusic OVER $1 MILLION REVENUE UPLIFT DELIVERED ON OPTIMIZED REVENUE " HIPCNOSIS SONGS FUND 30#32Live concert royalty collections Traditional payments services slow and expensive 2022 first opportunity to trial fast-track payment services Two services used for Red Hot Chilli Peppers and Blondie tours Revenues already received from both tours Future tours in process of being signed up ACTIVE SONG MANAGEMENT DRIVING VALUE " HIPGNOSIS SONGS FUND NENANGUNKANKAMNINGA HALEN IZAINI 31#33Licensing & copyright management Copyright Royalty Board (CRB) determines rates and terms for royalty payments in US CRB III 2018-2022 Incremental 44% headline increase in streaming revenues appealed by streamers Appeal rejected - industry working to distribute payment backlog CRB IV 2023-2027 ● Collaborative approach sees further incremental increase in share of streaming revenues for Songwriters and Publisher to 15.35% OUR ADVOCACY HELPED CREATE VALUE FOR SONGWRITERS. ADMINISTRATION ENSURES COLLECTION " HIPCNOSIS SONGS FUND 32#34Licensing & copyright management Mechanical Licensing Collective administers licences to streaming services Key role in distributing CRB III adjustments Anticipate recovery of underpayment to start from Q4 2023 Provides platform for publishers to fix missing and broken links $400 million in unpaid royalties from streaming services Hipgnosis maximizing of both future and unpaid income HIPGNOSIS CREATING VALUE WHICH DID NOT EXIST AT POINT OF PURCHASE " HIPCNOSIS SONGS FUND 33#35Ted Cockle CHIEF MUSIC OFFICER#36Promoting our catalogues " HIPCNOSIS SONGS FUND#37STRAICH THE CLASH- MELL MACBETH all HIPGNOSIS SONG MANAGEMENT JOHN LEWIS & PARTNERS#38THIS IS Empara Mi all HIPGNOSIS SONG MANAGEMENT BON JOVI Hey n M#39BAZE all HIPGNOSIS KITK JAMES can't touch THIS Superreak Pads182 SONG MANAGEMENT Hammer Super creary 720236 098 NICKI MINA J#40Pete Paphides @petepaphides . Nov 26 Seriously, how many songs have the power to do this?! Just glorious! 00 Goodable @Goodable Nov 24 A man was sitting alone, on a bench in a park, singing Bon Jovi's Living on a Prayer by himself. By the end, the entire park joined along to sing with him. Show this thread 0:31 8M views 38 1 98 M 700 647 H HIPCNOSIS SONGS FUND 39#41Hipgnosis Songs Fund High quality Catalogue 24% of songs in Spotify's Billions Club (78/324) Over 10% of Rolling Stone's The 500 Greatest Songs of All Time (52/500) Almost half of YouTube's Most Viewed music videos of all time (13/30) Proactive Song Management Strong market growth Continued rapid gains in streaming ● New income streams e.g. gaming, social media CRB regulatory tailwinds DELIVERING SUPERIOR VALUE OVER THE MEDIUM TERM " HIPCNOSIS SONGS FUND 40#42Merry Christmas HIPGNOSIS SONGS FUND