VINYL GROUP LTD — Interim / Quarterly Report 2020

Feb 26, 2020

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ASX RELEASE

Half Year Business Update and Interim CFO appointment

Sydney, Australia, 27 February 2020: Jaxsta Limited ACN 106 513 580 ( Jaxsta or the Company , ASX: JXT) the world’s largest dedicated database of official music credits, today provides an update on the half year results.

Appointment of Interim CFO and Head of Growth

The Company announces the appointment of Iain Bartram as Interim CFO, effective 2 March 2020.

Jacqui Louez Schoorl, CEO and Co-Founder, said of the appointment, “Iain brings to the Company extensive executive leadership skills. With his significant experience in disciplined cost management, allied with an understanding of leveraging technology for value, success in new business ventures and revenue and sales management, we believe he will be a great fit at Jaxsta.”

Iain Bartram has worked in early stage businesses for over twenty years, including previous experience as the CFO of an ASX listed organisation. Iain’s experience also includes roles working in partnership with the music industry and he is familiar with the complexities of licencing rights within the industry. He replaces Renee Bryant who has resigned to pursue further career opportunities.

Ms Louez Schoorl commended Ms Bryant for her leadership and expertise. “We thank Renee for her significant contribution over the past two years overseeing the Jaxsta transition from a private entity to a publicly listed company with operations in Australia, UK and USA. We are also pleased to have Iain on board in an interim capacity and look forward to his contribution to the financial function of Jaxsta.”

Additionally, as the business has continued to secure additional data partners and expand the product and platform capabilities, the Company has identified and refined the strategic focus for the business. To further progress this refinement the Company has appointed a new Head of Growth, Shaun Alexander, to the Jaxsta team. Shaun will be driving the sales and marketing campaigns focused on customer acquisition including reporting on core metrics, analysing campaign performance and identifying key areas for improvement. A key focus will be enabling Jaxsta Pro’s sales systems, processes and information to scale leads and sales volumes.

Jacqui Louez Schoorl said “As the Company has grown and evolved over the past few years, we have taken an approach of continually adapting to ensure Jaxsta is positioned for each stage of growth. We are confident that the recent changes within

Jaxsta Ltd. Level 1, 113-115 Oxford Street, DARLINGHURST, NSW, 2010 , AUSTRALIA Ph: +61 2 8317 1000 Jaxsta.com ABN 15 106 513 580

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our management team will ensure we are able to leverage the opportunity before us to drive user uptake and refine our product and messaging to clearly articulate our value proposition for businesses and end customers alike. We look forward to working closely with Shaun to deliver strong growth in our user base over the coming months and leverage our existing partnerships and associated relationships to deliver key B2B revenue bearing agreements.”

Key Financial and Operational Update

Jaxsta’s platform now contains:

• more than 40 million individual web pages

• 105 million official credits

• 25 million unique recordings

• dedicated pages for over 10 million profiles, including 1.8 million artists and 400,000 producers and engineers.

Jaxsta’s state-of-the-art big data solutions are now processing over 100,000 new credits per day from the Company’s ever-expanding list of official music industry data partners.

Over the past three months following the launch of Jaxsta Pro[Beta] the Company has experienced good, albeit slower than anticipated, initial user traction. This has been demonstrated by an average monthly growth in the visitor base over the first three months since Jaxsta Pro’s launch of 80% (month on month) coupled with consistent, strong customer feedback on the value add of Jaxsta Pro to users’ daily lives. The Company is continuing encouraging enterprise licensing discussions and development of further features to consistently enhance product-to-market fit to suit the music industry. Additionally, as the business refines the sales and marketing strategy, the Company anticipates the ability to further leverage the strong digital marketing visitor acquisition metrics for organic visitor and subscriber growth for individuals.

Further key highlights:

• From the commencement of CY20 and given that a 30 day trial period is offered for Jaxsta Pro, as at the date of this announcement the Company has 329 early-adopters of the product and continues discussions with respect to numerous enterprise licence agreements

• First revenue-generating commercial deal for Jaxsta Pro subscriptions providing education and marketing exposure to just over 100,000 APRA AMCOS members over the coming months

• First public demonstration of the capability of Jaxsta’s bespoke big data solutions - using music metadata from Jaxsta’s platform to power the

Jaxsta Ltd.

Level 1, 113-115 Oxford Street, DARLINGHURST, NSW, 2010 , AUSTRALIA Ph: +61 2 8317 1000 Jaxsta.com ABN 15 106 513 580

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promotional ‘Behind the Record’ campaign conducted with The Recording Academy

• Solid cash balance of $3.8 million as at 31 December 2019

• Hosting an exclusive Producers and Engineers Wing event during GRAMMYs ™ week in Los Angeles - over 300 attendees in the bespoke Jaxsta studio, a 100% success rate in attendees finding their Jaxsta profiles and over a 20% free trial sign up rate among these individuals

• Continued strength in the Company’s relationships with the 32 data partners covering ~90% of the world’s music market[1]

• Strong alignment with the major data partners making up ~2% total equity holdings in Jaxsta

• Successfully extended data licensing agreements with The Recording Academy, Sony Music Entertainment (which incorporates data from The Orchard Enterprises NY, Inc.) and 13 other existing data partners

Over the course of the last six months, Jaxsta management have made significant strides to secure the Company’s market position through important data partnership agreements and by delivering on the launch of the Company’s first revenue-generating product, Jaxsta Pro - a business to business, subscription-based suite of tools tailored for music industry professionals and powered by Jaxsta’s comprehensive and authenticated music credits data.

Outlook Statement

Ms Louez Schoorl, CEO and Co-Founder said “Often tech start-ups are pressured to present immediate ‘hockey stick’ numbers underpinned by an unsustainable marketing spend. We have not done that. Jaxsta Pro launched at the end of November 2019 right before Thanksgiving, one of the biggest holidays in the US annual calendar, the USA being our biggest markets for site traffic to Jaxsta.com. We have been testing our messaging, SEM (search engine marketing) and display ads by fine-tuning in a very disciplined and sustainable way. Our growth is improving week on week. Positive customer retention has come from the continued

enhancements to both Jaxsta.com and Jaxsta Pro as evidenced by our continued and encouraging customer feedback. Like all emerging businesses, we continue to learn, pivot, adapt and improve our strategies. The ongoing feedback from our customers reinforces our belief in the value we bring to music industry professionals. This gives us the potential to create significant value over the long term for us as a business first and foremost and for our shareholders.”

Building from the launch of Jaxsta Pro in November 2019, Jaxsta continues to focus on the expansion of data partnerships across the music industry. This involves

1 As calculated according to the distributor’s estimated individual market share by number of streams as quoted to Jaxsta by its data partners.

Jaxsta Ltd.

Level 1, 113-115 Oxford Street, DARLINGHURST, NSW, 2010 , AUSTRALIA Ph: +61 2 8317 1000 Jaxsta.com

ABN 15 106 513 580

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focusing on securing enterprise subscription agreements, securing bespoke data and expanding Jaxsta’s opportunities for future development and revenue growth.

Relevant discussions remain ongoing and provide the team with the knowledge that the product offering is resonating with key industry participants and creating opportunities for future developments.

A key focus for the business over the next months is progressing the agreements required to launch the ‘Musical Works’ feature of Jaxsta Pro and implementing further enhancements to the platform. Additionally, the Company is highly focused on the promotion of, and market education for, the platforms multi-faceted capabilities as not simply a repository for user profiles but also an active database that can be leveraged to reduce workload and enhance industry insights across the spectrum of industry participants.

Additionally, the Board has commenced a formal search for a permanent successor to the role of CFO, which will include consideration of Mr Bartram for the role. The Company will update the market in due course.

Investor Audio Webcast

Jaxsta will hold an investor audio webcast at 11:30am, Tuesday 3 March 2020.

To pre-register or join this webcast please follow the link below. To submit questions please provide them in writing via email to jaxstainvestors@jaxsta.com by midday Monday, 2 March 2020.

https://services.choruscall.com.au/webcast/jaxsta-200227.html

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For further information please contact:

Authorisation & Additional Information: This announcement was authorised by the Board of Directors of Jaxsta Limited jaxsta.com Level 1, 113-115 Oxford Street Darlinghurst 2010 NSW Australia

Jaxsta Investor Relations: Stephanie Ottens Market Eye Pty Ltd E: jaxstainvestors@jaxsta.com P: +61 2 8097 1201

Jaxsta Ltd.

Level 1, 113-115 Oxford Street, DARLINGHURST, NSW, 2010 , AUSTRALIA Ph: +61 2 8317 1000 Jaxsta.com ABN 15 106 513 580

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ABOUT JAXSTA

Jaxsta is the music industry’s global music technology company using data to solve an industry-wide need for official data. Digital music has seen an end to the printed “jacket” that once came with a physical CD or LP – where music enthusiasts and professionals would look to discover the names of those responsible for the music they love. The go-to authoritative source of music information, Jaxsta is collecting music metadata from major and independent record labels, publishers, royalty agencies and industry associations across the globe. The data is de-duplicated, cross-referenced, deep-linked and then made available online within a multi-functional, ever-evolving platform.

The Company’s core platform, Jaxsta.com, is live and its B2B subscription-based service, Jaxsta Pro[Beta] , launched in November 2019. Jaxsta Pro[Beta] includes features only available to paid users. The Company’s head office is in Sydney, with representatives in New York, London and Los Angeles.

Jaxsta Ltd.

Level 1, 113-115 Oxford Street, DARLINGHURST, NSW, 2010 , AUSTRALIA Ph: +61 2 8317 1000 Jaxsta.com ABN 15 106 513 580