Net Asset Value(s)

6 March 2023

ROUND HILL MUSIC ROYALTY FUND LIMITED

(the "Company" or "RHM")

Registration number: 68002

Legal Entity Identifier: 213800752UO1CJTV8C39

NET ASSET VALUES PER ORDINARY SHARE AS AT 31 December 2022

The Company announces that as at 31 December 2022 its Economic Net Asset Value per Ordinary Share was US$1.28 ("Economic NAV") and its unaudited IFRS NAV per Ordinary Share was US$0.93 ("IFRS NAV").

The Economic NAV includes a c.US$43 million increase in the valuation of the Company's portfolio (including its equity interest in RH Carlin Holdings LLC ("Carlin interest")). This increase is predominantly due to strong organic growth of 15% from the Company's catalogues (exluding its Carlin interest) and 10% from the Carlin interest throughout 2022, with the following being notable.

- The Company is finally seeing covid recovery effect in its royalty receipts, due to the lag time in royalty income payments that can range from 6 to 12 months after income is earned.

- Licence fees from digital platforms such as TikTok and Meta.

- Successful sync placements throughout the year such as Eric Carmen's "All By Myself" in advertisements for Adobe and TD Bank, Andreas Carlsson's "I'm Alive" by Celine Dion placed in the trailer for the French film La vraie vie d'Aline Dieu and "Waking Up In Vegas" by Katy Perry which was placed in an advertisement for BEHR Music In Color.

- The Company's largest portfolio position by value, The Offspring catalogue, has seen a 25% increase in 2022 royalty earnings. This was bolstered by the July Round Hill Records release of their Greatest Hits album on vinyl and a busy 2022 touring schedule.

The valuation of the Company's catalogues has been prepared by the Company's independent valuer, Citrin Cooperman ("CC"). As part of CC's valuation, the discount rate remains unchanged at 8.5%.

As part of the annual financial statements process, the Board had instructed a second independent valuation, prior to the receipt of the Citrin Cooperman valuation. Further information in relation to additional valuation is intended to be disclosed within the annual financial statements. 

The Economic NAV and the IFRS NAV include an unaudited draft fair market value for the Carlin interest. The completion of the Company's and RH Carlin Holdings LLC's audits may lead to an adjustment in the Economic NAV when the annual financial statements are released in late April.

Footnote for further information:

The Carlin interest calculation is different from the year-end 2021 NAV announcement. In the year-end 2021 NAV calculation the Company used an estimated fair market value ("FMV") for the Carlin interest from the Company's June 2021 interim financial statements, as the year-end 2021 unaudited draft financial statements for RH Carlin Holdings LLC ("Carlin") were not available at the time of the announcement. The Company was able to receive an unaudited draft financial statement for Carlin in time for the year-end 2022 Economic NAV announcement and the Company was able to incorporate the latest unaudited draft FMV for the Carlin interest. The Board believes that this unaudited draft FMV for  the Carlin interest is a better representation of the Company's latest Economic NAV performance and deems it appropriate to be used for the year-end 2022 Economic NAV calculation. 

Contacts:

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About Round Hill Music Royalty Fund Limited

The Company is a non-cellular Guernsey company. The Company's investment objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve this, the Company invests in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP, to be ancillary thereto.

About Round Hill Music LP

Founded in 2010, Round Hill Music LP is a fully integrated owner and operator of music copyright properties. With employees located in Nashville, New York, Los Angeles and London, Round Hill Music LP has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries.