Universal Music Group

About

Recorded music

Music publishing

Digital distribution

UMG labels

Management team

Key figures

Universal Music Group (UMG) is the world’s No. 1 music company. Its worldwide operations cover two key areas: recorded music and music publishing. UMG leads the way in the digital distribution market by offering customers the world’s largest digital music catalog as well as a wide range of innovative services.

With operations in 77 countries, UMG has an estimated 25.7%* share of the global recorded music market.

*Source: Music & Copyright – CY2006 market share (most recent available data)

www.universalmusicgroup.com

World ’s No. 1 recorded music company

UMG buys, markets and distributes recorded music all over the world. It has particularly strong positions in the North American and European markets, which account for nearly three-quarters of global sales.

With the diversity of its labels, which include pop, classical and jazz, UMG has the resources to discover, market and distribute successful artists from a range of musical genres. Albums by Mika, Rihanna, Timbaland, Maroon 5 and Kanye West were among UMG's top sellers for 2007. In terms of local markets, the best regional sales for the year were achieved by Gregory Lemarchal (France), Kid Abelha (Brazil) and Wolfmother (Australia), among others.

UMG owns the largest recorded music catalog in the world, with a wide variety of well-known performers including ABBA, Louis Armstrong, Eric Clapton, Nirvana, Edith Piaf and The Police. Each year, sales of titles in the catalog represent a significant and stable share of UMG's recording revenues.

World ’s No. 1 music publishing company

Through Universal Music Publishing Group (UMPG), UMG has a strong presence in music publishing. UMPG owns and acquires rights to musical compositions (as opposed to recordings) and licenses them for use in recordings, films, videos, commercials and public performances.

In May 2007, UMG finalized the acquisition of BMG Music Publishing, making it the No. 1 music publisher worldwide. UMPG's catalog now offers two million titles, including legendary hits like "Copacabana," "Strangers in the Night" and "R.E.S.P.E.C.T." UMPG also represents the works of the most prominent artists, songwriters and performers of our time, including Justin Timberlake, Coldplay, U2, Elton John, Mariah Carey and The Beach Boys.

Digital distribution: a booming market

UMG supports and encourages the development of digital music distribution by offering its content in digital form. It develops innovative online offerings and new distribution channels with a view to diversifying this significant revenue stream.

Online and mobile activities saw impressive growth in 2007, a trend that is very likely to continue in 2008. In the US, online downloads increased throughout the year, with strong growth in sales of digital tracks (+45%) and albums (+54%) compared with 2006.

Mobile sales continued to grow in 2007. Hypersound ringtones were the second best-selling product in terms of revenues, and video streams financed by advertising were also very active. These ad-supported video sales allow UMG to transfer a growing share of advertising budgets from traditional broadcast media to the Internet.

Innovations like video downloads onto mobile phones, video ringtones and mobile video streams are now appearing on the market to meet the growing demand for mobile music products.

UMG labels include:

Island Def Jam Music Group
Interscope Geffen A&M Records
Lost Highway Records
MCA Nashville
Mercury Nashville
Mercury Records
Polydor
Universal Motown Records Group
Decca
Deutsche Grammophon and Philips
Verve
GRP
Impulse! Records

Doug Morris
Chairman & Chief Executive Officer, Universal Music Group

Zach Horowitz
President & Chief Operating Officer, Universal Music Group

Lucian Grainge
Chairman & CEO, Universal Music Group International

Nick Henny
Vice Chairman and Chief Financial Officer, Universal Music Group

2007

>> Revenues
4,870 million euros

>> EBITA
624 million euros