VINYL GROUP LTD — Investor Presentation 2019

Mar 11, 2019

The Official Story Behind the Music

Est. 2013

Jaxsta Investor Presentation

March 2019 Presented by Jacqui Louez Schoorl CEO and Co-founder Phone: +61 2 8317 1000

Commercial in Confidence

The contents of this document are confidential and must not be passed on or copied to any other person. No liability whatsoever is or will be accepted and no representation, warranty or undertaking, express or implied, is or will be made by Jaxsta Ltd, its Subsidiaries, Investors or its Directors for any information. Recipients of this document are recommended to seek their own advice.

Disclaimer

This presentation has been prepared by Jaxsta Limited ACN 106 513 580 (Jaxsta or the Company). The material contained in this presentation is intended to be summary information only about Jaxsta and its activities, current as at the date of this presentation. This presentation should be read in conjunction with other Jaxsta Ltd periodic and continuous disclosure announcements filed with the Australian Securities Exchange, available at www.asx.com.au.

This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire or dispose of any securities in Jaxsta. It has been prepared without taking into consideration the objectives, financial situation or particular needs of any individuals.

This presentation may contain certain forward-looking statements and comments about future events. Statements regarding the possible or assumed future performance, costs, dividends, returns, rates, prices, potential growth of Jaxsta, industry growth or other trend projections and any estimated company earnings are or may be forward-looking statements. Forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control of Jaxsta, are subject to change without notice, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, and which may cause the actual results or performance of Jaxsta to be materially different from any results or performance expressed or implied by such forwardlooking statements. Such forward-looking statements speak only as of the date of this presentation. Past performance and forward-looking statements should not be relied on as an indication or guarantee of future performance.

This presentation has been prepared from sources which Jaxsta reasonably believes to be reliable and accurate as at the time of publication. No representation, warranty or undertaking is made by Jaxsta, its officers, employees or advisors, that any source, projection, forecast, assumption or estimate contained in this presentation should or will be achieved. Each person must conduct their own independent investigation, evaluation and analysis of the matters and data set out in this presentation, and rely entirely on such investigation and analysis. Each person must form their own opinion as to the content of this presentation. Recipients of this presentation are cautioned not to place undue reliance on forward-looking statements, which speak only as at the date of this presentation. Subject to any obligations under applicable law, Jaxsta disclaims any obligation or undertaking to update or revise any content or forward-looking statement in this presentation or to advise of any change in events, conditions or circumstances on which any such statement is based including to update any inaccuracy, omission or change of the information contained in this presentation.

Jaxsta, its officers, employees and advisors, to the extent permitted by law, expressly disclaim all responsibility relating to or resulting from the use of the material and information contained in this presentation and exclude all liability whatsoever (including negligence) for any loss (including consequential loss) or damage suffered by any person as a result of the use of or reliance on any of the information in this presentation or any error, omission or inaccuracy in any such information, including without limitation, any financial information, estimates or projections. Jaxsta has not carried out due diligence investigations in connection with the preparation of this document and has not verified the information in this document.

This presentation is not, and should not be considered to, constitute any invitation, offer to sell, or solicitation of an offer to buy or subscribe for any securities in the Company, and no part of this presentation forms the basis of any contract or commitment whatsoever with any person.

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Key Highlights

› GRAMMYs Signed - Aug 2017

› Sony Music Signed - Sept 2018

• 2nd largest Record Label in the world with offices in 43 countries with 27% market share

› Jaxsta Beta - Nov 2018

Previewed Jaxsta Beta with record labels, performance rights organisations, publishers, awards and charting associations and digital service providers (DSPs) and conducted a live preview at Sorveiv Music Industry Summit in Norway

› ASX Listing - Dec 2018

• › Major conferences and music awards events including BIGSOUND, AC3, Sorveiv Music Summit and A2IM Music Mixer

› Universal Music Group Signed - Mar 2019

• The largest Major with 36% market share and valued at over US$50 billion (UMG will be isssued with Warrants in Jaxsta and, upon exercise, will hold equity in Jaxsta)

• › On track for a soft launch of Jaxsta Beta in the first half of CY19

• › Processed over 90 million data points in our database

› 61st GRAMMY Event - Feb 2019

Promoted the upcoming soft launch of Jaxsta Beta during the Producers and Engineers Wing GRAMMY Week event and the 61st GRAMMY Awards

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Investor Highlights

• › Scalable technology business - subscription revenue model with beta launch in H1 2019

• › Significant addressable market - $203M+[*] addressable market p.a. for subscriptions alone

• › Economic moat - underpinned by ‘big data’ technology

• › First to market advantage - Jaxsta is the most comprehensive official music credits provider of its kind

• This figure is based on 1.5M addressable target market times by Jaxsta's average Pro subscription fee of $135 p.a.

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Artwork credit: Christopher Burns

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Jaxsta Capital Structure

Trading under'JXT' Share Capital:
Free Tradeable Shares		128,446,278
Escrow		89,660,623
OrdinaryShares Total		218,106,901
Options(20c)	Expiry: 16/11/2023	20,000,000
Options(30c)	Expiry: 16/11/2023	1,000,000
Warrants* (1c)	Will vest over diferent periods and have expirydates upto 7years 2,852,240

• Warrants are yet to be issued. Refer to the ASX announcement dated 12 March 2019 relating to the Digital Product Agreement with Universal Music Group.

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Financing History of the Company

›Founded early 2015 as a private company

›First private investment (June 2015) - effective share price 5c

›Raised AU$1.15M in 2016 - effective share price 15c

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›Jaxsta IPO raised AU$5.09M in public listing capital raise (Dec 2018) effective share price 20c

›Total funds raised since inception AU$6.24M

• ›Approximate market capitalisation of AU$30M

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Photo: Jonathan Denney (via unsplash.com)

The Problem

There is still no official central database of music credits and liner notes.

This problem has created a void of trustworthy digital music credits for fans, talent and industry professionals alike, which in turn has affected discovery , collaboration and accurate attribution .

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Artwork credit: Jeff Schock

What are the real costs of decentralised and inaccurate credits?

For Industry Professionals & Companies:

• Misplaced catalogue revenue

• Lost business and commissioning opportunities

• Data management overheads

• Time spent on researching

For Artists & Music Creators:

• Misplaced royalties

• Lost collaboration and networking opportunities

• Portfolio management overheads

• Unchecked fraudulent activity

For Digital Music Service Providers:

• Loss of customer engagement

• Higher bounce rates and unsubscriptions

• Limited competitive advantage

• Limited feature development

For Music Enthusiasts:

• Limited knowledge on their music

• Time and frustration spent on further music discovery

• Limited options for listening

• A need to pirate not purchase

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The Solution

Jaxsta is a metadata platform of music credits and liner notes sourced from official industry partners worldwide.

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Music Industry Jaxsta Digital Music Service Catalogs Providers Industry Music Fans Professionals

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The IMDb / LinkedIn of the Music Industry

Artists, engineers, producers, songwriters, labels and more, all put work into music every day, but often only the artists get credited. There is no widely adopted source for musicians and the industry to promote their careers using their body of work.

IMDb . The movie industry has LinkedIn . The corporate world has

Jaxsta brings both of those concepts together to provide an official source which in practice will be a "IMDb meets LinkedIn" for the music industry.

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Artwork credit: Frankie Cordoba

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Snapshot of the Music Industry

1999 Music revenues via CD sales peaked at US$25.2B

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2014 Music revenues bottomed out at US$14.2B

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2017

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3rd consecutive year of growth, up to US$17.3B, mostly due to the growth of paid streaming subscriptions

2030

Goldman Sachs forecast label revenue to more than double from 2015 levels by 2030 1

Global Recorded Music Industry Revenues 1999-2017 (US$ Billions)

17.3

1 2016 | Music in the Air: Streaming Drives Industry Comeback - Goldman Sachs

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Snapshot of the Music Industry

MARKET SHARE BY DISTRIBUTORS - STREAMS¹

JAXSTA'S 2019 PROGRESS

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Other
19%
Universal Music Group Universal Music Group
36%
Warner Music Group
18%
Sony Music Sony Music
27%
Jaxsta signed data partner
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With data agreements secured, we've reached critical mass coverage and can focus on launch.

1 BuzzAngle Music 2017 U.S. Report - BuzzAngle Music

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Revenue Stream #1

Issue: Lack of networking and employment opportunities for Industry professionals, including artists – since the demise of the record jacket.

How does Jaxsta address this?

Jaxsta Pro B2B

Subscription Based Service, Launching 1st Half 2019

• › Industry Pro Subscriptions

• Think LinkedIn or IMdb for industry professionals,

• US$120 pa discounted

• US$150 pa premium

• Creative industries employ 3.9 million globally 1

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Market Size:
Practical
250-500K
Addressable
1.5m
Target
3.9m
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1 EY Cultural Times 2015 - EY

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Revenue Stream #2

Issue: Bad Data in the music industry - Data Service Providers (DSP’s), industry bodies and fans source inaccurate and unauthorised data from our competitors.

Largest revenue in the market is Gracenote (value US$94m est.)

How does Jaxsta address this? Big Data (API) Supply

Market Size:

› Jaxsta aspires to be the official, verifiable and authorised source of data available to enhance the product offerings of market leaders

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1 T.Ingham 2019 | Spotify hit 96M paying subscribers in 2018 - and just posted its first ever operating profit - Music Business Worldwide

² 2018 | Apple Music Now Has 56 Million Users: Report - Billboard

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96m paying users 207m total users 1

56m subscribers incl. free membership 2

310m users 3

Over 1.9 billion active monthly users 4

• ³ 2016 | Number of active Amazon customer accounts worldwide from 1st quarter 2013 to 1st quarter 2016 (in millions) - Statista

• ⁴ 2019 | YouTube by the Numbers: Stats, Demographics & Fun Facts - Omnicore

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Competitive Advantage

› - Accuracy and authoritative We work directly with record labels, publishers and Peformance Royalty Organisations (PRO) to extract their deep data

› Living database - Comprehensive and up-to-date music data market data (Bloomberg for music)

›Jaxsta Pro extends metadata into a highly usable tool for the industry

›Data from multiple charts available all in one place, including chart movement alerts

›Jaxsta accurately displays artist collaborations

›We deep link and de-duplicate the data with our own patentpending solution

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Comparative Information

By way of comparison[] , Jaxsta has the potential to be the ‘music’ version of* :

Break down levels of individual LinkedIn subscription

LinkedIn

Premium Career US $29.99/m

590 million members 1

IMDb 87 million registered users[2] 200k-500k Pro members 250 million unique views per month

Premium Business US $54.99/m

Sales Navigator Pro US $74.99/m

LyricFind for credits

Recruiter Lite US $129.99/m

• This is not intended to be a forecast or forward looking statement and is in no way indicative of likely subscription membership. Details provided for information purposes only.

Business Platform Upwards from US $10k p.a.

1 2019 | Linkedin by the Numbers: Stats, Demographics & Fun Facts - Omnicore

2 2019 | IMDb - Wikipedia

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Jaxsta Network/Relationships

Initial Launch Regions

Country Market Size USA 322 million UK 65 million Australia 24 million

Signed Data Partners:

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Licensed Data Partners:

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25+ data partners

Proud Members of:

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Management Team

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Jacqui Louez Schoorl CEO & Co-Founder

• › 20 years Film and Music Industry experience.

• › Extensive experience with product development, production, distribution and marketing.

• › Worked with George Lucas and Rick McCallum on ‘Star Wars Episodes II and III.

• › Worked with Baz Luhrmann and Catherine Martin on their famous

• ‘Chanel No.5’ campaign.

• › Founder of Women In Music Sydney.

• › Proud dementia advocate for Alzheimer’s Australia NSW.

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Louis Schoorl Co-Founder

• › Multi award-winning songwriter and producer.

• › In Australia he has worked with artists such as Guy Sebastian, Jessica Mauboy, Daniel Johns, 5SOS,The Veronicas, Delta Goodrem and many more.

• › In Los Angeles Louis has been writing with/producing for Kesha, Demi Lovato, Dua Lipa, Julia Michaels, Jason Derulo and Andy Grammer.

• › Louis is signed to Disney Publishing out of the US.

• › Louis was the Breakthrough Songwriter of the Year Award winner for APRA AMCOS in 2014.

• › Graduate of the Australian Institute of Company Directors (GAICD)

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Phil Morgan CIO

• › Music, ecommerce, data and technology strategy expert.

• › Over 15 years of detailed experience across online business, from management to data, analysis and development.

• › Career highlights include over 7 years in online at Woolworths Limited, and 4 years consulting on ecommerce and technology for Playhouse Digital.

• › Phil has worked with brands big and small, covering everything from business strategy and forecasting for new market entrants to systems architecture and logistical enhancements for established businesses.

Dick Huey

Head of Partnerships

• › Over 20 years experience in Music Business.

• › Founder of Toolshed, based in NYC since 2001.

• › A strategic consultant to major consumer brands with extensive digital music services skills in the areas of digital strategy, rights acquisition and usage issues.

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Renee Bryant CFOO

• › 10 Years working within a multi-million dollar entrepreneurial music business, promoting and financing tours for international artists including Coldplay, Pearl Jam, Elton John and SIA.

• › Commercially focused CFO with the ability to manage risk, provide strategic advice to the Board on financial performance and sustainability, scope Joint Venture feasibilities, and work with foreign currency.

• › Strategic business acumen and interpersonal skills that enables leadership across the business and with external stakeholders both locally and overseas.

• › Genuine ability to adapt to changing environments and respond to rapidly changing situations.

• › Extensive relationships across major and independent record labels and digital service providers.

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The Board

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Brett Cottle

Chairperson & Non Executive Director

• › Former CEO of APRA AMCOS for 27 years

• › Has attended over 190 board meetings with APRA AMCOS

• › Ranked #27 in themusic.com.au 2016’s Power 50

• › Received Order of Australia in 2012

• › Studied Law at The University of Sydney

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Jacqui Louez Schoorl Executive Director

• › CEO, Executive Director and Co-Founder of Jaxsta

• › 20+ years entertainment industry experience

• › Founder of Women in Music Sydney - 1000+ followers

• › Shortlisted for Executive of the Year in The Industry Observer Awards 2018

• › Accomplished public speaker

• › Graduate of the Australian Institute of Company Directors (GAICD)

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Linda Jenkinson Non Executive Director

• › First New Zealand women to list on the United States NASDAQ stock exchange

• › Air New Zealand NED

• › Sold her company Les Concierges for $150mil in 2017

• › 25 years general management and consulting experience

• › Background in business services, financial services and insurance, hightech, healthcare, and transportation and logistics

• › Expertise in general management, strategy, capital raising, mergers and acquisitions, strategic sourcing, operations, outsourcing, turnarounds, finance, entrepreneurialism and change management

• › Founded two multi-million companies including an IPO of a $230 million international transportation services company with 6,000 employees

• › M.B.A., The Wharton School, B.B.S. Massey University, A.C.A qualification

• › Public and private board experience

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Jorge Nigaglioni Non Executive Director

• › 24+ years of experience in accounting and finance roles in both public and private companies.

• › Jorge has worked with start up companies and has been CFO for two publicly listed companies in the United States and Australia.

• › As a Controller at Agilent Technologies, he was involved in turning around two divisions to profitability.

• › In his last two years at PricewaterhouseCoopers he was involved in auditing and consulting for start up companies, where he has focused his expertise to launch early ventures to success.

• › M.B.A., University of Wisconsin-Madison

• › B.Sc. in Business Administration, Bryant University.

• › Mr Nigaglioni is a graduate and member of the Australian Institute of Company Director’s and also holds a Certificate in Governance Practice and Administration from Chartered Secretaries Australia.

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A endix pp

Appendix

Testimonials

“ After using Jaxsta for a few weeks during their beta period, I can honestly say this website is a game changer for the music business! Finally I can see the REAL credits for a record or song and know that this is verified information from the label and artist!”

• Songwriter & Producer

“ For the first time, I can source songwriting, musicians, charts, producers, engineers, publishers, agents, promoters, managers and labels for artists in one place which, to be frank, will save me hours of research. ”

• Managing Director, Label

“ Jaxsta Pro empowers you by providing

information that, until now, has only been partially accessible through time consuming research, data collection and networking.”

• Label & Marketing Manager

“ A service like Jaxsta has long been needed within the music industry. The time saved hunting creatives down is well worth the cost of Jaxsta on an annual basis.”

“ Until now we have had to rely on Wikipedia to find information out about potential collaborators. Searching for management, record label, publishing personnel etc. has always been very hit and miss and is a consistently frustrating experience. The fact that Jaxsta will have all of this information available to us on one platform is incredible news for our industry .”

— Director, Publisher

“ As a music marketing professional, I find I can quickly access the facts I need for pitch decks and one-sheets. Jaxsta is a well organized resource that is sure to be a HUGE time saver! ”

• Brand Strategist

“ Most music fans are interested in the relationships between different artists, which musicians played in which bands, album liner notes and so on. If Jaxsta can help DSPs add that sort of functionality to their services, I think it will result in increased stream and download revenues for everyone involved. ”

• Owner, Label

“ Currently, we have to spend hours trying to compile the information required by immigration in order to obtain visas for our clients. With Jaxsta, this information is all in one place, searchable and more importantly verified .”

• Owner & Managing Attorney

“ I am confident that music professionals will NOT be able to live without Jaxsta - once we have tasted it, explored it, played with it - similar to our Spotify or iTunes subscriptions. Jaxsta will become as important to us as our banking apps, our Uber app. ”

• SVP Membership, PRO

“ From the first time it was described to me, I’ve been excited about the potential of Jaxsta. Having a giant, searchable database of all the talent that goes into making music is exciting from both a fan’s and a professional’s perspective.

This is a great new income stream for the music industry in a time when those are very welcome. ”

• Head of Opeations, Distribution Company

“ Jaxsta is about to resolve a problem that has dogged the recording music industry since the dawn of digital distribution .”

• CEO, Association

“ As a photographer and creative director, I can see it as a wonderful way to connect directly with musicians, management and PR agents for potential collaboration and commission opportunities. ”

• Photographer (Editorial, Commercial, Documentary)

“ Jaxsta will provide fans (and potential industry business partners) the most accurate and rich information available for every artist and for every song . To me, that sounds like one of the most valuable and exciting developments to come to music in years. ”

• General Manager, Association

• “ The Music Industry will benefit enormously from this product. ”

• General Manager / CFO

• Artist Manager / A&R

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Appendix

Jaxsta Darlinghurst Office

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Photography by bokephotography.com

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Thank You

Jaxsta Ltd ACN: 106 513 580 Level 1, 113-115 Oxford Street Darlinghurst NSW 2010 Australia

Jacqui Louez Schoorl CEO & Co-Founder Phone: +61 2 8317 1000

To find something you 'Google it'. For anything music you'll 'Jaxsta it'. jaxsta.com

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Artwork credit: Jordon Conner

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