Spotify Results Presentation Deck slide image

Spotify Results Presentation Deck

Free Cash Flow Building and sustaining a strong balance sheet Free Cash Flow was (€73) million in Q4, a decrease Y/Y as a result of lower Net Income adjusted for non-cash items and reduced favorability in net working capital. Capital expenditures decreased €11 million Y/Y to €5 million as a result of the completion of office build-outs. While the magnitude of Free Cash Flow can fluctuate from quarter to quarter based on seasonality and timing, we have averaged over €200 million of positive Free Cash Flow on a trailing 12 month basis for the past three years. On a cumulative basis, we have generated over €1.3 billion of Free Cash Flow since Q1'16, supporting our strong balance sheet and €3.4 billion in cash and cash equivalents, restricted cash and short term investments balance. Spotify €500 €400 €300 €200 €100 €0 €1,500 €1,000 €500 €0 11 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Free Cash Flow, LTM* (EM) Avg. Free Cash Flow, LTM* (€M) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q221 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Free Cash Flow, Cume* (€M) * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. Cume represents cumulative performance since Q1'16. 12
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