finetunes digital media services September 2013, Lisboa

What the heck is finetunes?

Mission: finetunes, founded in 2003, is the pioneer in digital media distribution and exploitation of aggregated license rights. finetunes, pioneering the market of content-aggregators, fully owns its distribution/administration technologies (such as ContentHub, PromoTool, LabelConnect) and is constantly adapting those to new market demands even by expanding to foreign countries. Focusing on music as the main distributable content, finetunes is also monetizing video, long-form-video (esp. concert-films), audio-books from est. 2000 licensors from all over the world with more than 200 licensees (e.g. Apple / iTunes, Spotify, YouTube, Google[Play], Amazon). Vision: finetunes is on the way to become the No.1 independent clearing house for digital media assets worldwide

• Who needs finetunes: you, me – everybody who uses digital music and content

• finetunes only addresses the B2B market as an aggregator

• Target market for finetunes: all Independent labels

The Market…!

Sony 22%

UMG 23%

EMI 8%

WMG 15%

Indepents. 32%

Market Share within 2011 market of 5.1bn USD

(incl. physical product)

Keyfacts!

• Among the Top 5 independent license Clearing Houses worldwide

• 2004 – 5,000 clearings

• 2012 – 50,000,000+ raw clearings

• Tier 1 supplier and content aggregator and distributor

• Direct and indirect licensors >3,500

• >1,100,000 distributable assets (aka tracks)

• Complete digital business model

• Completely owned technology for administration, aggregation and distribution

• tightly structured and optimized work-flows using task-managing software system

Company Highlights…!

Henning Thieß

Chief Executive Officer

Jurist (non.-cert.) 15y+ BIS expert Co-Founder of finetunes

Cert. economist Principal on duty at TAZ 15y+ music label owner 1y Chairmen of VUT

(association of German independents)

2y+ Member of the Board Merlin (global association of independents)

Co-Founder of finetunes

Oke Göttlich

Chief Operations Officer

Alexander P. Sator

Chairman

10y+ incubation and investment experience as investor in various start-up and late stage companies

10y+ founder, entrepreneur with successful exits and integrations to large acquirer

8y+ Early stage investor in finetunes

….Management Team

(Future) Corporate Structure

finetunes GmbH

creative talents GmbH

ROYKIT GmbH

Cargo Digital Services GmbH

finetunes SE

100% 100%

50% Joint-Venture

100%

Board of Directors Executive Management

financials!

• Highly profitable

• Cash positive since 2009

• EBT 2013e ~10% of sales

• Strong cash position

• Debt free

Financial Highlights…!

2011 2012 2013 2014 2015

Net Revenue 6.818 8.920 10.800 14.000 17.000

0

5000

10000

15000

20000

Net Revenue in T€

2011 2012 2013 2014 2015

Operating Profit 801 1.077 1.440 2.300 2.800

0500

100015002000250030003500

Operating Profit in T€

2011 2012 2013 2014 2015

Net Income € 516 669 944 1.610 1.960

0

500

1000

1500

2000

2500

Net Profit / EBT in T€

Financial Charts

…detailed Figures

In T€ 2011 2012 2013 2014 2015

Turnover 6,818 8,920 10,800 14,000 17,000

Operating profit 801 1,077 1,800 2,300 2,800

Net profit 516 669 1,180 1,610 1,960

Total assets 2,087 2,130 3,010 6,800 7,100

Total equity 551 546 560 4,700 4,800

Cash and equivalents 1,556 1,231 1,050 3,050 1,120

Short-term liabilities 741 512 580 650 750

Investors Box!

• steadily increasing turnover with appealing outlook

• very scalable business model with anti-proportional overhead cost-ratio

• high reputation and credibility amongst the licensors

• Number two music content supplier to Apple / iTunes, best new performer

…Investment Highlights

Investors Box…..

Stock Exchange target: NYSE Alternext

First Trading Day 01.03.2014

Number of Shares 1.200.000 / 1.400.000

Par Value Each Share 1.00 Euro

Price per Share 15,00 EUR

Market Capitalisation 18 mio. EUR/ 21 mio. EUR

Number of employees 23

End of Fiscal Year 31.12.

Freefloat 0% / 30%

• Diversification with originating publishing rights (prolongment/rooting of the complete

value/profit-change)

• Acquisition of catalogues and/or complete labels for assimilation into our roster (publishing

AND performance rights) for optimized monetization

• Driving market consolidation by acquisitions of auxiliary market participants

• Alignment of existing share holder structure

• Performing a listing at NYSE Alternext

……use of funds

Contact finetunes!

Postal: URL: Finetunes solutions.fintetunes.net Stresemannstr. 375 Tel.: +49 40 328 91 981 05 22761 Hamburg Fax: +49 40 328 91 981 09 Germany Email: bs@finetunes.net