Gear4music : Full Year Results 2026 Presentation

About this update from Gear4music (holdings) Plc

FY26 Results Gear4music (Holdings) plc Investor Presentation June 2026 Why Gear4music Wins 2 A unique combination of specialist expertise, scale and customer focus Gear4music Digital-first platform Centralised logistics hubs supporting breadth & depth Broad catalogue across all categories, including high margin own-brand Traditional Retailers Store-led model Fragmented inventory Limited catalogue breadth Own-Brand Margin Advantage Proprietary E-commerce Platform Technology-led European Music Equipment Platform Broad Product Catalogue Scalable trade-in & resale ecosystem Operational leverage & scalability Weak second-hand capability High fixed-cost structure Second-Hand Trade-In Capability Europe-wide Logistics Infrastructure Pan-European localised experience Local market focus Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Overview 3 Transformative financial performance Strong operational progress Positive trading outlook Total revenue of £190.7m up by 30% FY25 revenue: £146.7m Gross profit of £54.2m up by 37% FY25 Gross profit: £39.7m Gross margin of 28.4% up by 140bps FY25 Gross margin: 27.0% EBITDA of £18.4m up by 84% FY25 EBITDA: £10.0m EBITDA margin of 9.7% FY25 EBITDA margin: 6.8% Profit before tax of £10.3m up by £8.7m FY25 PBT: £1.6m Record year for orders processed ; 1.2m orders fulfilled including a record over 14,000 shipped in a single day on Cyber Monday Maximum UK capacity reached during FY26 peak trading period; Capacity restrictions unlocked ahead of FY27 peak trading period with new UK warehouse New resources & capabilities in place to support further growth in FY27 and beyond Systems deployed include AI based inventory forecasting & purchasing, CRM & Promotions and website AI search FY26 Profits ahead of recently upgraded market expectations Well positioned for further momentum Significant resources available to invest where appropriate & capitalise on emerging opportunities; new £45m RCF secured New UK warehouse on-track to be operational in Q3 FY27 Strong FY26 exit run rate with 26% Q4 revenue growth YTD double-digit revenue growth Trading in line with Board expectations Gear4music (Holdings) plc | Investor Presentation | June 2026 FY24 - FY26 Financial Trends 4 TOTAL REVENUES £190.7m +30% UK REVENUES £114.1m +26% AVERAGE ORDER VALUE £158 +7% FY26 190.7 FY25 146.7 FY24 144.4 FY26 114.1 FY25 90.2 FY24 83.1 FY26 158 FY25 147 FY24 153 EBITDA INTERNATIONAL REVENUES NET DEBT £18.4m +84% £76.6M +36% £5.0m -22% FY26 18.4 FY25 10.0 FY24 9.4 FY26 76.6 FY25 56.5 FY24 61.3 FY26 5.0 FY25 6.4 FY24 7.3 Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Commercial KPIs 5 Other brand sales +32% Reflects sales shift to G4M following competitor failures Own brand sales +24% Strong performance; failed retailers mainly sold other brands Digital sales +40% Increasing awareness and product portfolio Second hand sales +20% Growth elsewhere prioritised & capacity currently restricted by space Education sales +36% Government funding increase; reduced competition Showroom sales +39% Destination store status increasing; no local alternatives Home Audio & Visual sales +14% Strong performance; market not affected by retailer failures (yet) Average order value +7% Increased sales of higher value products SKUs in stock +28% Increased range of products available for immediate dispatch Influencer content +202% Significant increase in influencer content being published; strong ROI On hand stock +28% Reflects targeted investment in line with increased activity Website sessions +32% Increase in traffic as market consolidates Email subscriber database +10% 2.0m to 2.2m email subscribers Session conversion -12bps Reflecting website traffic increases & competitor domain acquisitions Marketing costs +21% Strong ROI reflects restructured team & system improvements Labour costs +17% Labour efficiency improved as the business scales Gear4music (Holdings) plc | Investor Presentation | June 2026 Growth Strategy Enablers 6 Key initiatives driving the next phase of growth LAUNCHED H2 FY26 CRM & Promotions LAUNCHED MARCH 2026 AI-Powered Forecasting & purchasing Delivers more personalised customer interactions Improves promotional effectiveness Enhances customer engagement Strengthens our customer proposition reases productivity through AI-powered forecasting • Inc & returns Sup Improves purchasing decisions • Enhances product availability • Supports revenue growth • LAUNCHING SEPTEMBER 2026 LAUNCHED JUNE 2026 Investing in Scalable UK Infrastructure Range Expansion & G4M Courier Provides up to 2.5x additional UK capacity Enhances operational efficiency Supports future growth Creates space to expand showroom, second-hand Supports growth in high-value orders • Expands addressable market • Enables entry into new product categories • ports growth in premium digital and acoustic pianos • Gear4music (Holdings) plc | Investor Presentation | June 2026 G4M in-house courier to drive high-value orders 7 Opening opportunities for range expansion & high-end customer experience The Opportunity High-end products & educational sales drove a 55% rise in orders over £2,500 during FY26 Certain premium products are subject to supplier-mandated delivery and installation requirements Examples include high-end digital & acoustic pianos Missed sales opportunity estimated at £3m - £4m The Solution G4M In-house courier team, launched June '26 UK-wide 'White-Glove' delivery & installation service Directly employed drivers with specific product training Launched with two G4M branded vehicles Comparable cost to existing third party large-item services Meets supplier requirements, and enhances delivery experience Opportunity to quickly scale-up with low investment Gear4music (Holdings) plc | Investor Presentation | June 2026 UK Logistics Transformation 8 New UK warehouse fit-out underway; high degree of automation efficiency Expected to deliver increased capacity of 3,000 orders per day ahead of FY27 peak trading period Phase-1 covers 60% of SKUs (small/medium size products), with phase 2 covering larger products Fully completed capacity of up to 18,000 orders per day is 2.5x higher than current UK facilities Retained space in York provides expansion capacity for Showrooms, Second-Hand & Returns Payback in 3 to 5 years; labour efficiency improvements providing stronger operating leverage Roadmap* New warehouse in Yorkshire on a 15-year lease; 2-years rent free with £1.1m annual lease cost Existing Bacup site to be closed from FY28; current annual operational costs of £0.6m FY27 Phase-1 currently on schedule and on budget with capex estimated at £10.2m Duplicated Opex costs of up to £1m in FY27 & £0.5m in FY28 Phase-2 capex estimated at £8.8m; due to be completed in FY28 Agreement to lease signed Lease commenced; 2-years rent free Begin operating warehouses in parallel Bacup operation wound down Showroom & Second Hand facilities extended FY26 FY27 FY28 Future capacity up 18k orders per day Concept designs Design sign-off Phase-1 on-site Phase-1 3k orders 6k orders Phase-2 completion, developed and installation fit out final per day per day All Phase-1 orders subject to demand orders began commenced testing capacity capacity dispatched from new and operational facility requirements *N.B. timeline & capacities may change Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Results f i n a n c i a l o v e r v i e w Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Financial Highlights 10 Profitability Gross profit +37% £54.2m FY26 FY25 FY24 54.2 39.7 39.4 £'000 FY26 FY25 % of total sales FY24 Revenue 190,735 100.0% 146,720 144,384 Gross profit 54,245 28.4% 27.0% 27.3% European Distribution (3,781) (2.0%) (2.2%) (2.3%) Marketing costs (12,559) (6.6%) (7.1%) (7.0%) UK labour costs (12,967) (6.8%) (7.5%) (7.6%) Other costs (6,512) (3.3%) (3.4%) (3.5%) EBITDA margin 18,426 9.7% 6.8% 6.9%* Full year gross margin 30% 28% 26% 24% 22% 20% FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Gear4music (Holdings) plc | Investor Presentation | June 2026 * FY24 EBITDA margin is adjusted to add back £487,000 of one-off redundancy costs Product Margin analysis 11 £'000 FY26 FY25 % of total sales FY24 Product profit 58,508 30.7% 29.8% 29.9% Carriage Income 7,116 3.7% 3.9% 4.0% Carriage & packaging cost (11,379) (6.0%) (6.7%) (6.6%) Gross profit 54,245 28.4% 27.0% 27.3% Product Margin Own brand margin 22,315 50.3% 46.7% 45.3% Other brand margin 36,193 26.2% 25.9% 26.1% • Total product margin 58,508 32.0% 31.2% 31.3% Gross margin improvement of 140bps made up of an 80bps increase in product margin and a 50bps decrease in net carriage and packaging cost: Product margin of 32.0% reflects a continued focus on buying and pricing discipline whilst delivering sales growth: Own-brand margin 360bps up on FY25 Other-brand margin 30bps up on FY25 Sales mix effect - Own-brand accounts for 24.3% of product sales compared to 25.4% last year Net carriage & packaging costs decreased from 2.8% of sales to 2.3%, reflecting lower average carriage costs and a 7% increase in AOV Gear4music (Holdings) plc | Investor Presentation | June 2026 Year ended 31 Mar 26 31 Mar 25 31 Mar 24 Rate of overall sales growth 30.0% 1.6% (5.0%) Rate of UK sales growth 26.5% 8.6% 1.2% Rate of International sales growth 35.6% (7.8%) (12.4%) Own-brand sales (£'000) 44,358 35,665 37,607 Own-brand growth 24.4% (5.2%) (3.2%) Other-brand sales (£'000) 138,349 104,677 100,404 Other-brand growth 32.2% 4.3% (5.4%) Own-brand % of total sales 23.3% 24.3% 26.0% Marketing costs (£'000) 12,559 10,420 10,077 Marketing as % of sales 6.6% 7.1% 7.0% Labour costs (£'000) 15,902 13,624 13,521 Labour costs as % of sales 8.3% 9.3% 9.4% Gear4music (Holdings) plc | Investor Presentation | June 2026 Trading KPIs 12 Sales +30% on FY25 at £190.7m - momentum consistent through the year - FY26 H1 up 31% & H2 up 29% UK sales increased by £23.9m (26%) to £114.1m reflecting improved competitive landscape and strength of brand and proposition in our most mature market. Estimated market share c.13.1% International sales returned to strong growth with a £20.1m (36%) to £76.6m reflecting improved market conditions across European territories Other-branded sales performed relatively better than own-brand sales; failed retailers mainly sold other brands Marketing return improved to 6.6% of sales, reflecting greater efficiency as we brought PPC-management back in-house, and improved market conditions Labour costs increased 17% relative to a 30% increase in revenue. Increase reflects a 9% increase in average headcount (451 to 492) and a 7% increase in average pay Income statements 13 Total Sales Product Profit Product Margin Gross Profit Gross Margin EBITDA EBITDA as % of sales £'000 190,735 58,508 32.0% 54,245 28.4% 18,426 9.7% £'000 146,720 43,799 31.2% 39,663 27.0% 10,041 6.8% £'000 144,384 43,225 31.3% 39,437 27.3% 9,406 6.5% Depreciation & Amortisation Net Finance expenses Tax Net profit Basic earnings per share (6,893) (1,190) (3,028) 7,315 34.9p (6,803) (1,676) (730) 832 4.0p (6,643) (2,179) 67 651 3.1p Year ended 31 Mar 26 31 Mar 25 31 Mar 24 Significant increase in sales reflects Growth Strategy progress positioning G4M to take share as market consolidates Gross margin of 28.4% was 140bps up on FY25 reflecting disciplined focus on margin retention and improved market conditions Admin expenses of £43.7m were just 17% (£6.4m) higher than FY25, as operational leverage translated higher revenue into earnings European admin expenses of £5.4m (FY25: £4.7m) comprises £3.8m overheads and £1.6m PPE and right-of-use asset depreciation Net financial expenses decreased £0.5m to £1.2m principally due to a £0.1m net translational forex gain (FY25: £0.2m forex loss), and £0.1m lower bank interest New UK-DC lease increases IFRS16 depreciation and interest by £1.3m in FY27; first rent of £1.1m payable FY29 Gear4music (Holdings) plc | Investor Presentation | June 2026 Balance Sheet overview 14 As at 31 Mar 26 31 Mar 25 31 Mar 24 £'000 £'000 £'000 Freehold land and buildings 6,745 7,392 7,556 Other PPE including Right of Use assets 7,407 9,221 11,405 Intangible asset - software platform 11,484 12,312 12,814 Intangible assets - brand and goodwill 9,283 9,294 9,235 Fixed assets 34,919 38,219 41,010 Inventories 42,776 34,193 25,643 Trade and other receivables 7,010 3,386 3,847 Cash and cash equivalents 8,015 5,576 4,696 Current assets 57,801 43,155 34,186 Trade and other payables (24,904) (19,921) (13,478) Leases (1,857) (1,869) (1,794) Current liabilities (26,761) (21,790) (15,272) Net current assets 31,040 21,365 18,914 Loans and borrowings (13,000) (12,000) (12,000) Leases (4,571) (5,940) (7,599) Other long-term liabilities (2,091) (2,341) (1,959) Non-current liabilities (19,662) (20,281) (21,558) Net assets 46,297 39,303 38,366 Gear4music (Holdings) plc | Investor Presentation | June 2026 Strong balance sheet - £46.3m net assets and £45m committed RCF with HSBC Net bank debt down £1.4m to £5.0m (31 March 25: £6.4m) notwithstanding an £8.6m increase in inventory and £3.1m prepayments relating to new UK-DC that unwind in FY27 H1 Net bank debt equates to x0.3 times EBITDA and is secured by freehold properties valued at £6.7m PPE capex held to £0.3m (FY25: £0.3m) Capitalised £3.4m of software development costs (FY25: £3.6m) and amortised £4.2m (FY25: £4.1m) resulting in year-end NBV of £11.5m (31 March 2025: £12.3m) Stock increased £8.6m (25%) in-line with increased activity and reflecting broader own-brand range and SKU availability across all DCs, and investment in selected branded products as and when the opportunity arises Stock turned x3.7 times (FY25: x3.6) Cash Flow overview 14,000 15 Increase 12,000 10,000 18,426 Decrease Total 8,000 6,000 £ '000 4,000 (6,886) 2,000 0 (2,000) (3,295) (3,109) (4,000) (6,000) (8,000) (6,424) (2,104) (1,136) (304) (153) (4,985) Opening net debt Reported EBITDA Net working capital Software development New DC prepayments Lease Payments Net Interest Other Capex Other items Closing net debt Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Results K P I r e v i e w Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Website metrics Millions 12-Month website conversion & traffic 17 Website data Diff. FY26 FY25** FY24* Total unique sessions +32% 82.4m 62.2m 49.9m UK sessions +28% 50.5m 39.4m 28.7m European sessions +40% 31.9m 22.8m 21.2m Total pages viewed +22% 237m 194m 171m Mobile sessions as % of total -500bps 48% 53% 58% UK session conversion rate -10bps 1.31% 1.41% 1.82% European session conversion rate -18bps 1.51% 1.69% 1.94% Weekly Website traffic since Oct 2023 Millions 5 4 3 2 - 04/25 07/25 10/25 01/26 UK Sessions EU Sessions Session Conversion Rate 1 10 2.50% 9 8 2.00% 7 6 1.50% 5 4 1.00% 3 2 0.50% 1 0.00% UK Sessions EU Sessions Total Gear4music (Holdings) plc | Investor Presentation | June 2026 *Data compiled using Google Analytics v3 (GA3) **Data compiled using Google Analytics v4 (GA4) FY26 Customer metrics Profitable from the first transaction Customer retention improving 18 4.6 £14 Cost of acquisition £158 Average order value £45 Retention rates FY26 FY25 FY24 3-month 19.7% 18.9% 18.2% 6-month 26.4% 25.1% 24.1% 12-month 32.1% 31.7% 30.2% GP per transaction FY26 FY25 FY24 Average order value Gross profit per transaction Cost of acquisition £158 £45 £14 £147 £153 £40 £42 £15 £15 35.00% 30.00% Customer Profiles FY26 FY25 FY24 Active Customers 1,029,000 846,000 799,000 New Customers 877,000 716,000 674,000 Repeat Customers 201,000 168,000 163,000 Email subscriber database 2.22m 2.02m 1.83m 25.00% 20.00% 15.00% 10.00% 5.00% 2023 2024 2025 Gear4music (Holdings) plc | Investor Presentation | June 2026 0.00% 0 3 6 9 12 Months after 1 st transaction Becoming more influential 19 Significant influencer progress reducing reliance on PPC and strengthening brand awareness % Y25 5% Total content views: Total monthly content output: 58.8m +765% 125 pieces +315 Up from 6.8m in FY25 Up from 30 pieces per month in F Total engagements: Engagement rate: 3.9m +900% 6.6% +89bps Up from 0.4m in FY25 Exceeding industry benchmark of Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Product sales 30% Guitars Electric, acoustic & bass guitars 14% Keys Pianos, synths, digital keyboards 11% Drums Electric, acoustic & percussion 5% Home audio & visual HiFi, TVs, Projectors, Surround Sound Revenue £55.2m Growth +39% Revenue £25.4m Growth +21% Revenue £20.8m Growth +33% Revenue £8.3m Growth +14% 22% Live & PA Speakers, lighting & microphones 11% Studio Mixers, headphones, monitors, interfaces 6% Orchestral String instruments, brass, woodwind 2% Second-hand All product categories 20 Revenue £39.7m Growth +27% Revenue £21.1m Growth +31% Revenue £10.2m Growth +28% Revenue £3.6m Growth +20% Gear4music (Holdings) plc | Investor Presentation | June 2026 Summary & outlook 21 Financial Strategy Delivered transformational financial performance with growth in revenue, profit and margin expansion Net bank debt reduced for the fifth consecutive year, strengthening balance sheet flexibility Secured a £45m revolving credit facility to support warehouse expansion and strategic growth opportunities Robust financial position supports continued investment in operational efficiency, automation and customer experience Year-to-date trading in line with Board expectations Strong execution against the growth strategy refreshed in June 2025 Strategic initiatives launched during FY26 expected to drive growth and operational benefits in FY27 and beyond New UK warehouse on track to be operational ahead of the FY27 peak season, increasing capacity and efficiency Ongoing diversification of sales channels and customer verticals to support sustainable longterm growth Gear4music (Holdings) plc | Investor Presentation | June 2026 FY26 Results b a c k g r o u n d i n f o r m a t i o n Gear4music (Holdings) plc | Investor Presentation | June 2026 Board of directors 23 Executive Non-executive Chair Andrew Wass Launched Gear4music in 2003 Responsible for strategy and implementation, Andrew has taken Gear4music from concept to a multisite international business with revenues of £190m Previously ran a recording studio business, before setting up an IT business supplying other studios with recording equipment CEO Gareth Bevan Joined Gear4music in July 2012, taking responsibility for Commercial strategy execution, Purchasing, Pricing & Supplier relations Over 23 years' experience in music equipment retail Previously at DV247, the largest music equipment retailer at that time, where he was responsible for purchasing, sales & marketing CFO Chris Scott Joined Gear4music in October 2012, and is responsible for Finance and Governance, and is Company Secretary An experienced stakeholder communicator, playing a key role in the 2015 IPO and subsequent reporting & investor roadshows Chartered Accountant & Executive MBA graduate, 12 years with KPMG in the advisory practice, and previous industry experience as CFO of Officers Club and a 15-month secondment at Barclays Bank Senior Independent Director (SID) Neil Catto CFO of Revolution Beauty NED and Audit Committee Chair of tinyBuild Inc. Former CFO of BooHoo Group Plc 2011-2022 Neil has significant UK plc experience with previous positions at Dabs.com plc, BT Plc and Carphone Warehouse Group Qualified as a chartered accountant with EY Non-Executive Director Harriet Williams Joined Gear4music in January 2021 Vice President of Global E-commerce at the LEGO Group & NED of Lindex Group Former Chief Digital Officer at The Body Shop Previous industry experience: Gucci, Debenhams, Marakon Associates Non-Executive Director Sharon Daly NED of Warpaint London PLC , and member of their Audit and Remuneration Committees NED and a member of Audit, Remuneration and Nominations Committees at BRCK Group Plc and Billington Holdings plc Co-founded Venture Life Group in 2010, who joined AIM in 2014 More than 30 years of business experience Gear4music (Holdings) plc | Investor Presentation | June 2026 Key Milestones Gear4music: Launched in 2003 Revenue (£m) £250 £200 £150 New Swedish distribution hub & website refresh £4.2m equity fundraising COVID lockdowns begin AV.com launched, New Spanish & Irish hubs BREXIT Second Hand system launched 24 New Purchasing, forecasting & CRM platforms Market consolidation accelerates Refreshed Growth Strategy launched £100 £50 Moved into new 135,000 sq ft premises, and website update Multilingual European websites launched £3.4m Private Equity investment £28m IPO First European hub launched £0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Gear4music (Holdings) plc | Investor Presentation | June 2026 UK Market 2025 Market consolidation GAK - The Guitar, Amp & Keyboard Centre GAK fell into administration in April 2025 Revenues to September 2024: £20.4m Gear4music acquired certain assets from the Administrators: £1.6m of stock purchased for £0.35m Websites, brands & trademarks purchased for £0.18m 25 Estimated UK market: £873m Gear4music FY26 market share c.13.1%, up c.3.0% on FY25 Estimated UK online market c.£314m Market size decreased 1.6% in 2024 (Source: Music Trades) Fragmented UK market is consolidating; accelerating shift to online Estimated UK Internet Traffic Share, FY26 S&T Audio trading as PMT - Play Music Today PMT fell into administration in June 2025 Revenue to April 2024: £43.0m Gear4music acquired certain assets from the Administrators: £2.0m of stock purchased for £0.89m Websites, brands & trademarks purchased for £0.20m Bax Music, Netherlands, operating bax.co.uk Bax Music filed for Bankruptcy in March 2025 Group revenues to December 2023: €148.6m (UK estimate: €30m) Founder & investor rescues the business; websites back online from June 2025 after two months offline 4 Millions 3 3 2 2 1 1 - 04/25 07/25 10/25 01/26 Andertons BaxShop Gear4music GuitarGuitar Thomann Gear4music (Holdings) plc | Investor Presentation | June 2026 *Source: SEMRush Estimated European market: £4.1bn 26 FY26 European traffic share Millions 30 25 20 15 10 5 - Source: SEMRush Including Thomann Gear4music European market share up c.0.5% to c.1.8%; significant opportunity for growth FY26 European revenues of £74.7m, up 37% on FY25 Four European Distribution hubs Localised proposition features 15 languages 04/25 07/25 10/25 01/26 BaxShop Gear4music Kytary MusicStore Muziker Sonovente Strumenti Musicali Thomann Woodbrass and 8 currencies Top European Markets* Millions Country Estimated Market Size (£m) Germany 1,397 France 1,035 Italy 661 Netherlands 243 Austria 205 Spain 204 Switzerland 166 Sweden 127 Norway 96 Total Size 4,134 3 Excluding Thomann 3 2 2 1 1 - 04/25 07/25 10/25 01/26 Gear4music (Holdings) plc | Investor Presentation | June 2026 *Source: Management estimate **In an 'ideal' distribution of revenue between hubs Operations and Competitors 27 Gear4music delivery timescales: Gear4music 1 day road/ economy delivery 2 days road/ economy delivery 3+ days road/ economy delivery Bankrupt March '25 Bax Shop Restructured June '25 FY26 Revenues: Σ257m (Growth +30%) FY25 Revenues: Σ198m (Growth: +2%) FY24 Revenues: Σ194m 2024 Revenues Σ195m 2023 Revenues Σ196m Growth -1% GuitarGuitar 2024 Revenues Σ63m 2023 Revenues Σ61m Growth +3% Andertons 2024 Revenues Σ70m 2023 Revenues Σ75m Growth -7% Strumenti Musicali 2024 Revenues Σ57m 2023 Revenues Σ60m Growth -5% Thomann 2024 Revenues Σ1,874m 2023 Revenues Σ1,735m Growth +8% Muziker 2024 Revenues Σ91m 2023 Revenues Σ90m Growth +1% Music Store 2024 Revenues Σ149m 2023 Revenues Σ164m Growth -9% Gear4music (Holdings) plc | Investor Presentation | June 2026 Revenue data: MusicTrades Existing distribution capacity 28 Hub on-hand inventory storage capacities Existing hub capacity forecast Location Forecast inventory UK: York 116% 108% NOW Central Europe: Germany 105% 82% 2027/28* Ireland: Dublin 100% 78% 2027 storage capacity utilisation: Next 12 months Forecast sales capacity: Next 12 months Expected maximum capacity reached Irish hub £2.2m UK hubs £25.0m Central Northern European hub £9.2M Northern Europe: Sweden UK: Bacup Southern Europe: Spain 81% 80% 67% 68% 47% 23% 2030** N/A - Closing 2031 Southern European hub £7.3m Forecast sales capacities updated taking into account seasonality & most UK, Ireland & Germany: Third-party off-site storage currently being utilised *German hub: Potential to increase storage and extend maximum capacity **Swedish hub: Based on potential to increase capacity within the existing European hub £2.3m recent information Spanish hub: Lease renewed with footprint reduced in size by 50% until August 2028 subject to demand Swedish hub building Gear4music (Holdings) plc | Investor Presentation | June 2026 Evolved Growth Strategy - detail 29 Develop Enhance Diversify Expand Bespoke platform Purchasing & promotions tools New Forecasting & Purchasing system, being our largest development project to date, delivered Q4 FY26 Enhanced Promotions system rolled out during FY26 to deliver a unique proposition Embed AI across the business to enhance scalable advantage AI-first approach to enhance operational efficiency and elevate the user experience Expand AI integration beyond current use in content creation, marketing, and customer service Development tools & 3rd party applications Focus internal development resources on high-value, differentiating enhancements Leverage specialist third-party applications to minimise in-house development costs and accelerate delivery Second hand & digital download functionality Proprietary second-hand platform gaining Product offer Channels to market Second-hand product sales at 40%+ margin p30 Own-brand product development p31 Targeted brand acquisitions Strategic brand partnerships 20% growth to £3.6m Revenues in Year 3 with strong 40% product margins, capitalising on growing customer demand for value and sustainability £10m+ Medium-term revenue opportunity £44m revenue in FY26 at >50% product margins, underscoring strong profitability Medium-term potential to exceed £70m+ revenue driven by accelerated investment in the product development team Studiospares, GAK, and S&T Audio brands acquired in FY25 & FY26 to strengthen category coverage Ongoing focus on acquiring complementary brands to drive growth, margin, and customer loyalty Prioritise higher-margin products & optimise SKU ranges to streamline operations Deepen collaboration with key brand partners to unlock margin and promotional opportunities European marketplace integrations Accelerate own-brand growth in Europe through integrations with leading third-party marketplaces Recently launched on Bol.com, Fnac & Allegro with further platforms in the pipeline Unlock Growth through enhanced CRM New CRM platform launched H2 FY26 targeting improved customer retention and repeat revenue Upgraded reporting and data systems to boost marketing efficiency and support faster multi-channel growth Diversify marketing channels to reduce PPC dependence PPC represented 84% (FY25: 88%) of total ad spend in FY26 representing concentration risk Strategic focus on channel diversification to drive more sustainable and cost-effective customer acquisition Scale Influencer, Affiliate & Social Channels Influencer partnerships delivering strong ROI, with plans in place to scale activity Customer experience In-house courier service Establish an in-house courier operation to deliver a differentiated white-glove delivery and installation service. Drive growth in premium product sales by enhancing the customer experience, building on recent gains in average order value. Website experience Continuously enhance UX through iterative improvements, including AI-powered features such as chatbots and intelligent search Optimise customer interactions by automating key touchpoints and communications Sales Verticals AV.com positioned for further growth following strategic proposition redevelopment Adapt retail offering to effectively serve a broader customer base amid ongoing market consolidation Distribution capacity New UK-DC on-track for Phase 1 launch Autumn 2026 strong traction in a global market worth ξ8bn* Opportunity to expand digital software downloads, inspired by category specialists generating £20m+ in annual revenue across key platforms UK affiliate programme performing well; refreshed European affiliate expansion underway p19 Evolving scalable infrastructure to ensure seamless delivery and service as volumes increase Enhancing customer experience through targeted operational efficiency improvements p8 Gear4music (Holdings) plc | Investor Presentation | June 2026 * Source: Music Trades Strategy in focus: Second-hand product sales 30 Overview Opportunity in numbers Proprietary system launched in March 2023 Unique positioning; simplifies equipment trade-in 27,300 products currently available for trade-in, up from 22,900 in June 2025 Available on Gear4music UK, Europe & AV.com Accepted conditions now range from 'Fair' to 'Excellent' Global market size ξ8bn FY26 Product margin: 40.2% FY27 Sales target £6m Trade-in requests >20,100 Average sale value £295 2yr + opportunity £10m+ Instant prices calculated & offered Gear4music arranges collection Verify product & pay cash or credit on account Item listed for re-sale Gear4music advantages Access to a new & large market Good resale margins Follow-on sales: 28% of customers choose 'credit' on account Increased customer loyalty SEO & content benefits Alternative source of product supply Customer advantages Quick, low effort process; no photography or delivery requirements Selling risks eliminated Attractive cash price; increased value for G4M account credit to support next purchase Existing equipment gets reused & value realised Gear4music (Holdings) plc | Investor Presentation | June 2026 * Source: Music Trades Strategy in focus: Own-brand product development 31 FY26 new own-brand SKUs: 771 Most ever launched in a single year Target for FY27: 850+ Great value, premium music gear own-brand launched in June 2023 Achieved FY26 Sales of £1.9m (FY25: £1.1m) Gear4music Own-brands Brand Acquisitions Studiospares brands acquired in 2024, potential revenue of £3m+ Premier & Eden acquired in 2022, and delivering £1m+ sales Potential for further legacy brand acquisitions SKUs now live 356 FY27 sales forecast £2.5M FY26 product margin: 47.9% 2YR+ opportunity £4M+ Gear4music (Holdings) plc | Investor Presentation | June 2026 Strategy in focus: AV.com 32 4.8 / 5 RATING Progress Home Audio & Visual LFL sales: +14%: FY26: £8.3m, FY25: £7.3m, FY24: £6.7m 7,040 SKUs listed 147 Brands now online Multilingual websites Second-hand live Strengthened Management, content & merchandising teams in place Product categories include: Home Cinema & TV's HiFi & Speakers Headphones Cables & accessories Specialist AV Furniture Large European market £2.7billion Addressable European market* Mainly served by store-based retailers No dominant specialist online retailers *Management estimate based on extrapolation of Ibis World data for UK market size AV business operations Freehold property in Bacup acquired with the acquisition of AV Distribution Ltd Bacup warehouse upgraded in 2023, providing additional storage capacity Bacup showroom upgraded to support new brands German showroom now open Gear4music (Holdings) plc | Investor Presentation | June 2026 ESG 33 Gear4music ESG agenda Environmental Pillar Social Pillar Governance Pillar Third Climate Report to be published in full Annual Report ESG sub-committee formed in 2023; Climate Change Carbon emissions Product footprint Pollution & Waste Packaging Material & Waste Electronic waste Our Products Product Safety & Quality Supply chain labour standards Our People Health & Safety Diversity and inclusion Wellbeing Charities & Community Corporate Behaviour Board Diversity and Structure Executive Pay Ethics and Transparency Anti-Corruption Policies Board level agenda item Energy use high on priority list: solar installations completed Continuing high standards in product procurement and waste management High growth Second-hand system New initiatives support the Mental Health of our colleagues We recognise our responsibility to reduce our environmental impact, and can achieve this through technology, continuous improvements in operational efficiency, and doing things in new ways We are committed to retailing high quality musical instruments and equipment and AV products and adopting and improving practices that ensure there is no slavery or human trafficking in our supply chain We recognise the success of our business is founded on the hard work of a team of talented and motivated individuals, and are committed to making Gear4music a great place to work We are committed to conducting our business with integrity Partnering with charities where appropriate. Existing charities include: Gear4music (Holdings) plc | Investor Presentation | June 2026 Major shareholders and price graph 34 Name Number of shares % of issued share capital Andrew Wass 4,776,993 22.8% Liontrust Investment Partners LLP 2,327,596 11.1% FIL Limited (Fidelity) 2,056,306 9.8% River Global 1,181,938 5.6% Crucible Clarity Fund PLC 1,102,326 5.3% IG Markets Limited 758,734 3.6% Octopus Investments 634,018 3.0% Major Shareholders as at 30 April 2026 Share price graph 01 April 2025 to 15 June 2026 Jul 25 Oct 25 Jan 26 Apr 26 300.00 250.00 200.00 150.00 100.00 52 week range: 175p - 332p Market cap as of 15 June '26 £52.4m Gear4music (Holdings) plc | Investor Presentation | June 2026 Important: Disclaimer and notice to readers 35 This presentation is being made only to and directed at: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"); or (b) high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49 of the FPO (all such persons together being referred to as "relevant persons"); or (c) any other person to whom this promotion may lawfully be directed. Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation may contain forward-looking statements with respect to certain of the plans and current goals and expectations relating to the future financial conditions, business performance and results of Gear4music (Holdings) plc ("G4M"). By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of G4M, including amongst other things, G4M's future profitability, competition in the markets in which G4M and its subsidiaries operate and its ability to retain existing customers and win new customers, changes in economic conditions generally, terrorist and geopolitical events, legislative and regulatory changes, changes in taxation regimes, exchange rate fluctuations and volatility in G4M's share price. As a result, G4M's actual future financial condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward-looking statements. G4M undertakes no obligation to publicly update or revise forward-looking statements, except as may be required by applicable law and regulation (including the AIM Rules). No statement in this presentation is intended to be a profit forecast or be relied upon as a guide to future performance. Gear4music (Holdings) plc | Investor Presentation | June 2026

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