Slide 1: Results for the period ended 28 February 2025
Results for the period ended 28 February 2025 29 April 2025 1
Slide 2: Agenda
Agenda Introduction & Highlights Tim Carroll Sally McKone Slide 3 Chief Executive Officer Chief Financial Officer Financial Review Slide 7 Operational Review Slide 13 Strategic Update Slide 25 Summary & Outlook Slide 28 Additional Information Slide 32 Section Quick links Results for the period ended
Slide 3: Introduction and Highlights
Introduction and Highlights 3
Slide 4: A global music and audio products group
A global music and audio products group Content Creation Audio Reproduction 73% of revenue 27% of revenue HY24 70% HY24 30% Focusrite: audio recording ADAM Audio: studio Martin Audio: live and installed sound, equipment monitors, acquired July 2019 acquired December 2019 Focusrite Pro: audio
Slide 5: Review of the period ended February 2025
Review of the period ended 28 February 2025 Group Summary Content Creation Audio Reproduction Strategic update Content Creation sales Audio Reproduction 56 software updates in the Delivering growth and increase of 9.9% vs HY24 reduction of 5.8% vs strong period, reflecting the maintaining mark
Slide 6: 12% of Group sales relate to sales in the US of Chinese made products
12% of Group sales relate to sales in the US of Chinese made products Mitigating actions already taken Level of China manufacturing across Group brands Managed inventory build up in the US across all brands to ensure minimum of 6 months of stock availability Production already in Malaysia for Sc
Slide 7: Financial Review
Financial Review Results for the period ended 28 7
Slide 8: Financial summary
Financial summary Revenue returning to growth at 5.2% reported (7.2% organic constant currency) Gross margin at 43.9% is 1.9% points lower than HY24 impacted by elevated freight rates and product mix Adjusted EBITDA1 down to £10.4m from £12.1m in HY24 reflecting lower gross margins and variabl
Slide 9: Income statement
Income statement HY25 HY24 FY24 £m £m £m Revenue 80.9 76.9 158.5 Revenue growth of 5.2% Cost of sales (45.4) (41.7) (88.0) (organic constant currency 7.2%) Gross profit 35.5 35.2 70.5 Gross margin 43.9% (HY24: 45.8%) Administrative expenses (25.1) (23.1) (45.3) ‒ Audio Reproduction royalties fro
Slide 10: Freight and product mix impacting Gross margin
Freight and product mix impacting Gross margin Overall decrease of 1.9% points vs HY24 to HY25 margin bridge prior year 50.0% 1.3% HY24 included a provision for 45.0% Vocaster, a one-off negative impact – 47.1% 45.8% 0.6% 0.9% 1.7% 43.9% bringing underlying prior year to 40.0% 47.1% 35.0% 30.0%
Slide 11: Balance sheet
Balance sheet HY25 HY24 FY24 £m £m £m Intangible fixed assets ‒ Investment: £5.7m of R&D Intangible assets 83.3 87.5 82.9 ‒ Impairment of Sequential at prior year end of £5.4m Tangible assets 10.3 11.4 11.1 Working capital reduced from HY24 Total non current assets 93.6 98.9 94.0 ‒ Debtors impac
Slide 12: Cash flow
Cash flow HY25 HY24 FY24 £m £m £m EBITDA 10.4 12.1 25.2 Free cash outflow of £2.3m Adjusting and non-cash items 0.1 0.1 (0.5) ‒ Increase in working capital from Movement in working capital (3.9) (21.6) (8.9) inventory build to mitigate tariffs and Operating cash flow 6.6 (9.6) 15.8 sales phasing i
Slide 13: Operational Review
Operational Review Results for the period ended 28 13 February 2025
Slide 14: Content Creation
CONTENT CREATION Results for the period ended 28 February 2025 14
Slide 15: Content Creation Growth by brand
Content Creation Growth by brand HY25 HY24 Reported OCC1 £m £m growth growth Focusrite: Focusrite (inc. Pro) 30.9 29.4 5.2% 8.0% Scarlett Gen 4 range refresh now complete, with critical Novation (inc. Ampify) 8.7 7.9 10.4% 13.2% acclaim for higher range models. Strong growth in EMEA and APAC, with o
Slide 16: Inventory normalising in the channel
Content Creation Inventory normalising in the channel Content Creation Sales Months of stock Focusrite Novation ADAM Sequential Sonnox 100 12 Content Creation revenue £m 90 10 80 70 8 60 50 6 40 Normalised stock in 4 30 channel at 3–4 20 months 2 10 0 0 HY19 HY20 HY21 HY22 HY23 HY24 HY25 Scarlett re
Slide 17: Content Creation Regional revenue performance
Content Creation Regional revenue performance Restated to reflect revised regions1 HY25 HY24 Reported OCC2 Americas £m £m growth growth Tariff rephasing offsetting destocking, and some Americas 24.4 25.1 -2.6% 0.0% uncertainty in the region due to economic volatility EMEA 28.7 24.0 19.5% 22.8% EMEA
Slide 18: Content Creation Continuing market softness
Content Creation Continuing market softness US market data is the only widely available source for our industry (US Music Trades census) ‒ US Sales down 1.5% in HY25 for Recording products (-7.3% HY24) ‒ US sales down 2.9% in HY25 for Electronic Musical Instruments (-6.8% HY24) Recording products
Slide 19: Content Creation Underlying demand remains stable
Content Creation Underlying demand remains stable Scarlett product registrations Global product registrations by month by generation HY24 HY25 Gen 3 Solo Gen 3 Other Gen 4 Sep Oct Nov Dec Jan Feb Despite ongoing weakness in the market, end user demand across our Content Creation ranges remains str
Slide 20: Content Creation Maintaining a market leading position
Content Creation Maintaining a market leading position We have outperformed in our category across multiple distributors Our products are consistently shown in the top 5 most Thomann Sweetwater Amazon popular products in our (large EU online retailer) (large US online retailer) 46k ratings categor
Slide 21: Audio Reproduction
AUDIO REPRODUCTION Results for the period ended 28 February 2025 21
Slide 22: Audio Reproduction
Audio Reproduction Martin Audio, Linea Research, Optimal Audio, TiMax, Market normalisation US Focus Immersive audio OutBoard and panLab After seeing market strength Inventory has been increased New acquisitions have HY25 £m post COVID we are now in the US to mitigate against expanded our offering i
Slide 23: Audio Reproduction Regional revenue performance
Audio Reproduction Regional revenue performance Restated to reflect HY25 HY25 revised regions1 HY25 HY24 Reported OCC2 Growth within US market £m £m growth % growth % Americas 5.9 5.9 -1.2% 1.4% Asia stabilized in HY25 after spike in activity due to reopening from COVID in 2023 and restart of proj
Slide 24: Leveraging product portfolio to grow in a normalising market
Audio Reproduction Leveraging product portfolio to grow in a normalising market Comprehensive product portfolio Strong project pipeline Pipeline of current sales opportunities remains robust Our product portfolio is more comprehensive than (£ million) ever, allowing us to target more use cases Feb
Slide 25: Strategic Update
Strategic Update Results for the period ended 28 February 2025 25
Slide 26: Our growth strategy has remained consistent
Our growth strategy has remained consistent Create a Great Place to Work Annual engagement surveys across all brands Standardised leadership training across all UK managers Team development and leadership for brand and regional leadership teams Grow the Core Customer Base Investing in R&D to continu
Slide 27: Investing in Innovation to drive sales
Strategy Investing in Innovation to drive sales R&D innovation centres in each of our brands New products and real time upgrades Internally capitalised R&D £m FY 2024 5 4 35 57 53 new software content products updates releases 3 2 HY 2025 1 3 56 21 new software content 0 products updates releases H1
Slide 28: Summary & Outlook
Summary & Outlook Review Results for the period ended 28 February 2025 28
Slide 29: Current trading and outlook
Current trading and outlook Current Trading Content Creation: market is normalising but with increased uncertainty in the US due to tariffs Audio Reproduction: market softening, but expanded Audio Reproduction offering is generating a stable project pipeline Outlook Revenue: Slight weighting to H2,
Slide 30: What we said last year end....
What we said last year end.... "Content Creation: market is stabilising, but greater uncertainty with recent US election results and potential tariff impacts" "Audio Reproduction: market normalising, but the expanded product range should enable us to continue to take market share" "Cash flow:
Slide 31: Summary
Summary Content Creation returns to growth With stock in the channel back to normalised levels, new product introductions are driving growth Strong Audio Reproduction order pipeline Immersive audio offering able to meet all customer needs Improved working capital Inventory reducing and ongoing effec
Slide 32: Thank you Q&A
Thank you Q&A 29 April 2025 focusriteplc.com
Slide 33: Additional Information
Information 20H2 200Hz er ' eu ant suvaggens ee aut ev
Slide 34: Our market
Our market Results for the period ended 28 February 2025 34
Slide 35: Environment and climate change
Environment and climate change FY24 FY23 2nd year of compliance with UK Climate Related tCO₂e tCO₂e Disclosures (TCFD) Scope 1 & 2 ‒ We are compliant and have assessed climate change as low Net 0 0 risk in the short term (up to 2030). Gross 287 434 We now calculate our GHG Emissions footprin
Slide 36: Year end change
Year end change Feb 25 Aug 25 Feb 26 Accounting reference date moving from August to February 6 months Better align to industry cycles, Publication of unaudited interim results for the six months especially around the key ended 28 February 2025 holiday season sales Next audited results for the 1
Slide 37: Foreign exchange
Foreign exchange HY25 HY24 FY24 Natural hedge for USD Exchange Rates £m £m £m US and ROW revenue. Average Total c50% of revenue but US$:£ 1.28 1.25 1.26 almost all cost of sales so minor net profit inflow €:£ 1.19 1.16 1.17 Period end rate Euro hedged US$:£ 1.26 1.26 1.31 c75% of major Euro fl
Slide 38: Disclaimer
Disclaimer The contents of this document (the “Presentation”) and any securities of Focusrite plc (the “Company”) In particular, certain statements in this Presentation may constitute forward-looking statements and referred to in this Presentation have not been approved by an authorised person withi
Slide 39: Enriching lives through music
Enriching lives through music 29 April 2025 focusriteplc.com