Sirius XM Holdings Inc at Deutsche Bank Media, Internet and Telecom Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : <_ALACRA_META_ABSTRACT>Maybe to start off with some high-level topics, so there are a number of changes happening simultaneously across the company. They started last year and really still being absorbed into the business now with the aim of better positioning the company for longer-term success. So maybe you could just start off by walking through these changes and your other priorities for 2025.

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : That's a great overview. So we'll get into some of those in more detail. Maybe talk about streaming for a second, though. You pulled back on marketing to streaming for subscribers, but it's still a very important part of the business, streaming that is. What is the role of streaming in the customer experience and in the business more broadly as you go forward?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. Management change that you recently announced -- or addition, so Wayne Thorsen was appointed COO in December. I think it's the first time you've had a COO since Jim Meyer held that position prior to becoming CEO. What led the decision to bring in a COO? And what will Wayne's primary focus be initially? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 3:20PM, SIRI.OQ - Sirius XM Holdings Inc at Deutsche Bank Media, Internet and Telecom Conference

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : So talk about the subscriber outlook a bit. So you've guided to better subscriber growth this year relative to 2024, excluding the negative impacts associated with some of the changes you're making in the business. Do you have any sense for how much these factors could weigh on self-pay net adds and over which quarters we'll see those impacts specifically?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : There've obviously been headwinds to self-pay net adds due to lower OEM trial conversion rates. However, you've got some mitigating factors that can help to stabilize that or potentially improve conversion rates, things like 360L and streaming app experience improving, et cetera. You've got two new OEM distribution agreements you mentioned with Tesla and Rivian, and there could be some churn benefit, I think, from the three-year in-car subscription. So if you look beyond 2025, what do you think is achievable with respect to returning to positive self-pay net adds?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. Related to net adds, half of it is churn or more. So self-pay OEM churn has remained really low for the past two years. It's been in the 1.6% range. Where do you see that going from here?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. What have you seen so far with Tesla and Rivian since that agreement was signed, both in terms of the new vehicle sales and those brands as well as the existing base? And can you talk about how you're marketing to the existing base and how the trials work in comparison to the traditional OEMs?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : How are you continuing to expand the used car trial funnel in order to try to capture a greater share of use of that used car sales pool? And what are the trends that you're seeing on the used car side in trials now?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : So Jennifer mentioned on the 4Q call that used car ownership visibility has improved. I mean, is that what you're talking about? Or can you just clarify what she meant by that?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. What are you seeing among younger car buyers, which in this context really means Gen Y since Gen Z is not buying new cars yet? How are these consumers engaging with SiriusXM? Are you making any progress with this demographic? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 3:20PM, SIRI.OQ - Sirius XM Holdings Inc at Deutsche Bank Media, Internet and Telecom Conference

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. A few questions on ARPU. So you mentioned that Sirius is in the midst of refreshing pricing and packaging with the $9.99 base plan and then the add-ons. Can you talk a bit more about why you opted for the price structure, where you are in the process of rolling it out and what the reaction has been so far among consumers and whether they be new or existing?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Can you give us any color on take rates for the new plans or for the add-ons?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. That's encouraging. How do you expect ARPU to be impacted by the new price structure and over what period of time? And are there any offsetting impacts that could offset the ARPU headwind, for example, less need to use promotional discounting and, of course, the recent price increase? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 3:20PM, SIRI.OQ - Sirius XM Holdings Inc at Deutsche Bank Media, Internet and Telecom Conference

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. And then do you think you'd get back to growth at some point a couple of years out or --

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. How do you contain account sharing now that the app is well integrated into Apple CarPlay and Android Auto? Is this one of

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. So maybe talk about advertising a little bit. So you mentioned the opportunity to launch an ad-supported SiriusXM tier. Can you talk maybe about what that product would look? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 3:20PM, SIRI.OQ - Sirius XM Holdings Inc at Deutsche Bank Media, Internet and Telecom Conference

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. Any sense for timing? Like when you said near term, it could come --

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : How much of the vehicle park or of your installed base of vehicles is compatible with an ad-supported product through whether it's 360L or CarPlay or Android Auto?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : So that's -- I mean that's like 120 million cars.

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. So it's big?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Yes. Okay. How is the content strategy evolving? Where are you expanding or increasing investment? Any areas where you're pulling back?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. Advertising has been a headwind to growth for the last few quarters. What are you seeing currently in the advertising-driven parts of the business, Pandora, Off-Platform, SiriusXM? And how do you view the growth trajectory in advertising in 2025 and '26?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. Maybe we could move on to expenses and margin. As you operate in this more challenging revenue growth environment, how are you continuing to take costs out of the business in order to protect margin? And how much room is there to continue to cut cost given the amount of fixed costs you have in the business?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. Maybe talk about free cash flow a little bit. So CapEx has been elevated for the past two years and will continue to be elevated this year due to both satellite and non-satellite CapEx as you've launched new satellites and invested in streaming and other projects. So what's the outlook beyond 2025? Will CapEx begin to step down?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. Last question I have is just around guidance for this year. So you've given guidance for the full year. What are some of the risks to this year's financial guidance, for example, churn from the price increases, click-to-cancel impacts, the effects of tariffs, other macro uncertainties that could affect auto sales and advertising?

Question: Bryan Kraft - Deutsche Bank Securities Inc. - Analyst : Okay. All right. Great. Well, thanks, Tom. Thanks, everyone, for joining us.