Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 COMPANY REGISTRATION NUMBER 05062390 UNIVERSAL MUSIC UK SOUND FOUNDATION FINANCIAL STATEMENTS COMPANYLIMITED BY GUARANTEE 31 JULY 2025 Charity Number 1104027 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 CONTENrs PAGES Advisors and administrative det&iLs TTUStces' annual ￿F￿rt 2tolO Trustee%' statement of re5tx)nsibilities Independent auditor's report to the members 12to14 Sthtement of financial a¢¢iviti¢s (Incorporating th¢ in¢ome and expenditure account) Balance sheet 16 Notes to the fin￿¢]8[ statements 17to23 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION ADVISORS AND ADMINISTRATIVE DETAILS REGISTERED CHARITY NAME LTniver5al Music UK Sound Foundation CHARtTY NUMBER 1104027 COMPANY REGISTRATION NUMBER 050623 REGISTERED OFFICE 4 Panrrns Square London NIC4AG TRUSTEES Laura Arowolo Adam Barker (Chairl Duncan Brat¢hell (appointed 26 March 2025) YolanDa Brown OBE Michelle Emmerson (appointed 23 July 2025) Paul Garllbaccini (rEsigned 12 November 2024) Keith Harris OBE Jo Hibbitt [￿Slit Hill David Hughes MBE Sieve Lilley (apwinted 26 March 20251 Sharlott¢ Riichie lapwinted 26 March 20251 Tony Wadsworth CBE AUDJTOR Coop¢r Pry Group Limited StatLrtory Auditor Culm) Binnin8h8 4, Floor Two Chpmberlain Square Bimiingham B3 3AX BANKERS Barclays Bank plc 75 Kiny Str¢ct Hammersmith London W6 9HY SOLICITORS Mills & Reeve (appoknted 28 May 2025) 24 King William Street London EC4R 9AT INVESTMENT MANAGERS Evelyn PaTtners 45 Gresham Street London EC2V 7BG Rathbone Brot￿r$ PIC 8 Finsbury Circus London EC2M 7AZ Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT YEAR ENDED 31 JULY 2025 The tr￿￿te¢S present their statutory rewrt together with the audited finanGial statements of Univcrsal.Music Sound Foundation {the"Charity" or the"Foundation"I for thc ycar ctKicd 31 July 2025. This T￿￿tres. Report, required by the Chlritics Act 2011. is also the Directots, Report prepared in accordance wth the Compani¢s A￿ 2006. Th￿ report has been prepared accordance with the provisions applicabl¢ to ¢ompanies entitied to the small companies, exemption including th¢ ex¢mption from preparing a strniegic report. STRUCTURE, GOVERNANCE AND MANAGEME￿[ Cbarity's Gov¢rning Document The Charity is a company lllnited by guarantee incorpordted Ott 3 March 2004 andre8ist¢red *4 a charity on 28 May 2004. The Charity i% goven]ed ac¢ording]y by its Memoranthim and Article5 of Association. Trustee5 For the puryoses of company law the individuals listed atE both ¢harity tru5te¢s and di￿￿1￿r5 of the Chatity, and are app)inted in accordatKe with the Charity's constitution. Details of the tNstees who held offtce during the year and ther?after are as follows- Laurd Arowolo Adam Barker- Chair DUn￿n Brat¢hell- (appointed 26 March 2025) YolanDa Browj OBE Mi¢helle Emmer%on lappoinled 23 July 20251 Paul Gambaccini (resigned 12 November2024) Keith Hajris OBE Jo Hibbitt L*slie Hill David Hughes MBE Steve Lille) lapw)inled 26 March 2025) Sharlotte Ritchie lappoint¢d 26 Mawh 20251 Tony Wadsworth CBE Trea$urer Duncan Brat¢hell Name of Senior Employee Janie 0￿mBE (Chief Executive) Method5 of Recruitment altd Appolntment of Trustees Under the Coostitutio￿ the maximum number of truste¢s 1$ 12 and the minimum number is 4 (although the members of the Charity can amend these numbers ai a general meeting). Trustees are elected by a simpl¢ majority of all th¢ trustees entitled to attend and vote at an). board me¢tlL8. Each truste¢ is appoiiited for a 3 year ￿ri1)d commencing with iheir ap]x)inttnenl andtpding at the first Board meeting held on or after I Sep*mber in the third year. A trvstee is eligibl¢ for reappointmeni following each 3 year appointment. Th¢ Ch2rily aims Éo retain and recruit a divetse and a¢tiv¢ trustee knard, with a broad range of skills and cxpcricnce. Candidates may be selected from a N)ol of tnusi¢ industy and teaching talent already known lo the ttILStees, or may Ikn)atively bc sou8htthrou8h advertisement, in each case in accordancewith a comprehensiv¢ re¢ruibnent policy which is Teviewed by the trustees every two yeats, most recently aithe Odober 2024 trustee5' ￿¥¢ting Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (contlnued) YEAR ENDED 31 JULY 2025 Metbods of Rt¢rllitrnent Appoilltment of TrJ$tets (tODtinued) In the case of all ap￿Intr￿entS.' - th¢ chair of the tnistees will writs to the pmspective tnjsteels) setting out what their duties would be and the Foundation's expectations of them. prospective tNstee(s) must ¢ompl¢te a fonnal -con5ent to a¢t as a Direcior and Twstee form" that is used to registerih¢ir appointmen¢atComkMnies House. they are also asked to confirm thatthey are not dtsqualified from acting 85 a charity trus*e" (a) (b) Ic) prospective trustee(s) will be prowded with an infonnation pack on the Foutthtion including: Copy of the constitution- the Foundaiion'5 lat¢st re￿)rt 4nd accounts. opies of all the Curent policy do¢ument5 adopted by the itVStee5' minutes of ihe meetings of ihe tru5te¢5 and Audit And Finance Committee from the last 12 month5. general infonnatiot] relating to the activities of the Foundation (as relev#ntl: the latest version of Charity Commission Guidance CC3-ffi¢ Essential Trusttt.. What you need Èo know. Whatyou need to do": a SUTnmary documeYJt outlining all the funding St￿aMS that the Foundatio￿ off¢rs' (d) new Iwstecs will be offer¢d dll initial indurfion a5 well as th¢ more forma] periodic trainins which all trustees receive. Cbgir Adam Barker was JEappoint¢d ehairon 18 Mar¢h 2025 to setve for a further 3 yeartemi. Tr4ining provided for Trustees The Foundation organizcs periodic training for the Iruste¢s. The twstee5 and the Foundaliort's staff re¢eived detailed training from our independent lega] advisors in July 2021. This training session focused on a review of the Charity's governanct artang¢ments based on the principles in lh¢ Charity Governance Code, further detsils of which ar¢ set out i the "Charity Ihvemance Code" $￿tion below. In May 2025 the trustees appointed Mills & Re¢ve their new legal advisers and will arrnnge fvrther trustees trdujing by them during the next 12 monrFts. How the Cbgrity 1$ mallaged Throughout the year the ch￿lty has Ften managed by a Chief Executive and two assistants who are employed by the Charity. The Charity has also benefitted frorn administrdtion service5 provided by Universal Music Group Intemational Limikd through the Service Agreem¢ntas trferred to in ihe"Detai15 of r¢l&ted parties" section below. How IkcisioDS are rnxde The tn]stees have three scheduled formal meetings each year. for which agendas and 5UPPOrting papers are sent out i advance. Addi¢Lonal meetings are organized if requittd. Matters requiring decisions between the scheduled tneetin85 are dealt with by email. with ratification at the llext scheduled me¢ling, and by written re501utions of the trnstees. There is an Audit and FJAancc Committee which meets when apP￿priate and ai least onc¢ ay¢ar to review the trustees. annual report and financial statements and ¢hE Charity'5 invesnnent managemcnt arrangements. A rolling Grants Committee reviews applications for financial support and puts forward recoTnmendations 10 the tNstees which are then approved atth¢ trustee meetings. NN'here trustees are involved with all organisation which receives o grant or bursary from tk Charity, they dD not participate in the ￿ant or bursary approval and this is also noted in ihe Foundation's conflicts register. Immediately after the deadline for applications, a mE¢ling is r￿e￿ with the Chief Executiv¢ and two trustees {t￿stee$ rotat¢ membership of this committee) where all applications are r¢viewed and recommendations made. Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (continued) YEAR ENDED 31 JULY 2025 How Deelslons are made {continued) Each year colleges receivin8 bursartes from the Charity send detaiis of nomina*d s￿dents to the Charity. The nominations. which must comply with pre-agr¢ed criteria stt by the Follndatitsrt. are then circulaÉed to the fvll of tkwtees forreview and, if agreed, app￿Val. Charity GoverD4nee Code The trtL8tce5 have reviewed th¢ Charity's governatlce arrangements against the principles within the Charity Governance Code and b¢lieve that. tsking into account the size and nature of the Charity &s a grant maker, the Charity is opernting in line with the fijndamenial principles. A new ¢ode of¢ondu¢t fortrustees was approved at the october2024ts￿Stecs meetin8and will be reviewed eNEry 2yeatY. The trustees will continue to keep the Charity'5 govemance under periodio revi¢w using the Code as a point of refer¢t￿¢. PUBLIC BENEFIT sfATEMENT The trustees continue to comply with their duly to have rt8aTd to the Chariiy Commission's guidan¢e in exercising their powers and duties and confirnj that they have refrrred to ihe Commission's guidan¢e on publiti benefit when Thiewing the C.haiity's aims and objeclives and in planning futyr¢ activities and setting the grdnt making policy for the year. Tk descriptions of the tTUSters' obje¢tives alld activitits sel out beltsw clearly demanstrate that ihe Charity'$ objectives a entirely ¢haritable and that thE public benefit requirement is being met. AUDITOR The Charity has dispensed with the requirement to appoint the auditor annually under section 485 of the Companies Act 2006. 0￿CrivEs AND ACTIVITIES FOR THE PUBLIC BENEFIT Objects of the Charity The aim of th¢ Charity as defined by its Me]llorandum andArticles ofAssociation is to supp)rt music education foryoung people in all its fonns. Funds ajr distributed in the following ways.. bursarit5 for Tllusic stud¢nt5 and music education programmes at the colle8e5 and or88nisations the Charity I￿5 5elected.' funding of pff)jects for Sch￿[$ sponSo￿d by the Charity. as describ¢d below: and individual grants, generally not exceeding £l.000, in th¢ following areas.. funding music educatiai in schools and in higher edlleation (Primary, sewndary and tertiary), principally by assisting in the purch&se of instruments andlor equipment. 2SSlSting in the purch2%e of musical instNments andlor equipment for students in full titne education- and funding rn￿lc teackrs to advance their tr4iniDg and to attend relevant couws. The trusiees are pleased to report th￿ the actlVLti¢s undertaken over the period have continued to support the Charity's aims and objectives to as5LSt young people through the provision of bursari¢s and grants as described in this rep)rt. Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (continuedj YEAR ENDED 31 JULY 2025 Sebool$ Project The trustees ctrntinue Iheirprevious practice ofofferin8 ￿ndIng to the Foundation's partner schools for ayear-long musi¢ project. Fund5 are 40 be spent on SUp￿rting one or a combination of the PUTchase of music rcsources (insnwments a￿1 equipment) for the music department, Hardship Funding io suptrf)rt lessons for small groups of or individual stsdents of limited financial Tnegms and also wider OpwrtuTJtties programmes (Ivhole Class ItL%trumentalNocal Tuition). Key Slage I music involving training non-5pecialist music tea¢h¢rs in the fetdpr PriTn￿ Schools associated with The sp)nsored secondary sehools 8md extrd ¢urrieular music. ACHIEVEMENfs AND PERFORMANCE SMmmAry ofActivi¢i¢s During the year the FoundatinTr Tnade grants totalling £276.484 {2024: £405,187) to individual and $¢hool applteants. Pl¢ase see note 12 forthe full disclosure of the amounts approval un¢l8im¢d durin8 the yrdr. The tot21 numberof awards made irt the year was 60512024= 661). Forthe MaTch 2025 fiJndin8 round the Foundation received 511 applicatiorts which was the largest amount ever received to rev*w * a meeting. The Charity therefore propx)s¢s to introduce an additional funding round each y&qr with a view ty ensuring tlie number of grants for Tevi¢w at each meeting is more managtable. The grants which the Charity provides are d¢mand led well as bring based on the appli¢aiions r¢¢eived meeling the Foundation's criteria and th¢ total grdnts made being within ihe budget Set by the trustre5 Twenty-one of the Charity's partn¢r s¢condary schools parti¢ipated in the annual s¢hth)Is' proj¢¢t for which a £115,0(M) budget was approved by the trustees. The Ch￿lty continues to carry out extensiv¢ monitorÉng of this projtct, to ensure that fjjnding is uscd appropriuely. End of project¢Yaluation5 dT¢ submitted and shar¢d with the tNstees and th￿¢ are used to update fvture offets. The primary uses of our funding ¢ontinue to be instrument lessons for those children whose families are 5uff¢ring financial hardship, supp)rt costs and vital resources forthe music departments. The continuing rise in the cost of living impacts fatnilie5' ability to pay for their ¢hildren's music and in njm this leads to increasing demand on sdiools, resources. The Charity continues it5 5UPPOrt of iertiary ¢ducation through its annual bursary scheme. During the year the tn]stees rewiewedthe schetne a5 the turtEnt 3 yearschemem'as comllig toan end andagreedthat annual fundingwould be ittcreased by £IOOO for cach partner institution but each eornmitmenl period would b¢ r¢duced from 3 ytari to 2 years. The trustees have also Lgteed to add the Royal Northern College of Music, which will reccive the same level of anEJual SUPPDrt as our oth¢rpartn¢r in5titutiorts. Ourbursaries Continue to bE subject to adherence to the student nomit￿tIon criteria specified by the ChaTity and to the trustees, approval of successful applicants. During the yearatotal of £65,000 (2024.- £65.0001 was p2idto the following colleges and organisations.. BIMM unive￿itY Centre for Youttg Musi¢ians, London English National Opera (ENO Irish WoAd ALxdemy of Mugi¢ and Dance, University of Limerick Liverpool Institute for Perfomiing Arts {LIPA) National Children's Orchestrd National Youth Jazz Or¢hestra (NYJO} Royal A¢ad¢my of Music. London Royal Bimiingham Conservatoire Royal Conservattsire of Scotland, Glasgow Royal North¢m College of Music, Manchester Royal W¢lsh College of Music & Drama, C2rdiff In light of the changts agreed by ¢h¢ twstees the annual ¢ommimient for the current year will inCr￿e to £82.01)0. Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (continued) YEAR ENDED 31 JULY 2025 ACHIEVEMENTS AND PERFORMANCE (continued) De￿8 Bursary The D¢cGa BuTSary 1$ 2 ￿Stricted fund io inspire and encourdgE a new generation of classi￿1 musicians and comp05ets. During the year under review the De¢¢a Bursary offered £5.000 in funding towards a new pritnary winds programme with th¢ Royal Birmingham Conservatoire (RBC) Juniors. The funding wtll go tDwards payin8 thition Osts for pupils and will match funding provided by Futsre Talent. RBC have also agreed to eThgage wilh the two schools in Binningham which recEivEd workshops last year &% part of the ¢lassi¢ai music W0￿$hOp programme with Decu5 Ensernble. No fimdraising by the Decca Bursary wa5 ¢atTied out during the year under review. Megsures of 8Mecess. h¢Jiv the measurement inforniAtlOD is fJbt8ined In addition to the rnoniknring evaluations reftrred to above, the Charity ettcourages those it supports to remain in contact and to provide r¢gular updates. Thcchaiity Continues to receive annual r¢￿rts, websit¢ stori￿ and GCSE results from itssponsored sch(K)Is, thus enablingitto rnonitorperformaDceand asses5 the 1rnp￿t of the financial supportprovided as well as infomiing our grant decisiDll making for the folknwing year. Finan¢ig1 Review The principal funding sources for the period were inwme from investment and donations. The Ma￿et value of funds under inveslment on 31 July 2025 was £7,074,25012024.- £7.082,0831, a decre￿ of£7,833 or O.IOh reflecting movetneots in the investment portfolio as well ￿ the grants ￿ld awards paid during the year totaling £276,48412024'. £405.1871. During the year & total of £65,00012024.. £65,000) wa5 paid to bursaries in line with the 3-year bursary sch¢m¢, with no additiotml arnounts {2024= no additional amounts) paid from the restricied fvnd. Th¢ trustees att satisfled with the perfom)ance of The investment portfolio given mofket ¢onditiOllS during the year. The truste2g p￿e grateful to Universal Musi¢ tiroup International l.imited for its fundillg of the Charity throughout the year through the S¢tvi¢e Agreement ￿fened to in th¢"tktails of related patties" section below. The net expenditure for the year was £895 (2024.. net income of £123.945) and ihe net assets as at 3 1 July 2025 were £7,076,111 12094.. £7,077.0061. Please refer to'sutnmary of a¢tivities' on page 5 fora ￿VIeW of our 8rant-makiDg artivity in tIK year. PLANS FOR FUTURE PERIODS Theln]stees will continuetomonitortheirfunding schemes. With both mu5Ec ducation and householdbudgets continuing to remain under pressure demand forthe Foundation's funding will eontinue to rise yeAr on ye￿. CHANGES TO THE SERVICE AGREEMENr wtTH UNIVERSAL MUSIC GROUP Throughout the year under review the Foundation has benefitted from ihe Service Agreement with its ¢oryoratE spon50r. Universal Music Group International I"UMG"l. ￿ deseribed under Details of Related Parties on pa8e 22. As referred to in last year's report. at the end of that yvdr important changes to thc a￿angements with UMG were agreed. as des¢ribed below, and thE revised Servi¢e Agr¢¢m¢n¢ came ittio effect on l August 2024. The Service Agreement as in foKe prior to tIKse changes dated from when ihe Foundation's co￿0[atE sponsorwas EMI Group PIG. Subs¢quently UMG became the Foundation's corporate SPDnsor following its acquisition of EMI Group's recorded music busine55 in 2012. Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (continued) YEAR ENDED 31 JULY 2025 In May 2024 UMG infornied the trustee5 that it wshed to Testrncture its relationship with the Fourtdr4tion. The resttu¢wring would have involved.. thc rcdundancy of the Foundation's three staff. including the chief execLrtive. who were all employed by UMG,. the outsourcing of the day to day management and administration of the l.oundation's operations to a third party organisation. and c105er integration of the Fourtdaiion into LIMG'S global philanthropy operations. Afier detailed dis¢ussN)ns with LTrJG and Careful consideration of the rK)t¢ntial advantages di5advanta8es, the tNste¢s ¢on¢luded that the woposed restructuring was noi in the inteTe5ts ofthe Foundation nor its beiieficiaTiCS. An alternative approach was therefore agreed with UMG underwhich the staff b¢c&me employees of ihe Foundation from I Augthst 2024, on term5 broadly $imil&r to theiremployment by UMG (pro rata in the of ihe Chief Executive who now works three days a weck): and with UMG continuing its fiMan¢ial and othEr support of tk Foundation until 31 July 2027 when the Se￿ICe Agreement will terniinak. Thi5 SUPPDrt in¢ludes UMG reimbursing the Foundation for the ¢051 of employing the three membeTS of staff whose annual salary Teviews are limited to the average iThctc&se for UK employees of UMG. UMG also ￿yS the F￿ndatIon'S annual audit fee and provides free of charge website hosting and data ptrrte59ing. in5Utartte and varsous a¢GountiD& administrative and other support 5¢rvi¢¢s. The revised arrdngements are reflected in the amended Service AgreemenL GOING CONCERN The Charity's gr8J)i funding ictivhiies are generally funded through its investtnerjt portfolio. The trustees of the Charity have considered th¢ Charity's position and have detennined that the c.harity h&% sufficient to continue to op¢rnte &q a going concern for a period of twelve Mont￿ from the date of signing. RESERVES POLICY The ChaTity's funds Is at 31 July 2025 were £7.076,111 (2024= £7,077,006) of which £9.623 were restrict¢d (2024.. £15,637) for the Dec¢a Bursary as detailed on page 6 of this ￿POrt. Further detail is set out in rK>te 13 ￿ these accounts. The unre5trieted funds prcdominantly held in inves1ments. These &re Teadily convertible to cash to enable thet￿Slee5 tt) fulfil the objectives of the Charity. Th¢ policy is to hDld sU￿1Clent inYe5tments in order to generate invcstmcnt ineome and to 5UPPOrt the charitoble activitie5 of the Foundation. The majority of overhtads are born¢ by UMG under the Service A8reement which Ajns until 31 July 7027. In setting the budget for each grani round. the I￿￿tteS thke into account the setve situation. The only extended commitment ofthe Charity is th¢ 2-year bursary 5chemt which was renewed in July 2025 and entails annual fundingof up ¢0 £82.000 which is easily covered by the income from investment fuTh(ts. The resetves held &$ at year.end are sufficieTLt to comply with the reseThes pglicy. In light of the ongoing operaiional atKi fin9￿ClaI support available through thc Scrvice Agreement with UMG (referr¢d in the "Detai￿ of ￿lated parties" section below) and the signifieant investment fund5 held by the Charity. the trustees consider that at this time there is rcquirement to set aside full(ts to ¢over th¢se or other Costs. The twstees review this policy eaoh year and will in particular review the ￿SitIo￿ when the Se]vice Agreement comes to an end in July 2027. RISK MANAGEMENT STATEMEP In a¢cordanee with the Charities Statementof Recommended PTaGtice, the trustees regularly review the Foundation's risk exposure and mauitain o risk regi3ter A description of the principal risk5 and uncertainties facing the Foulldation. &$ identified by th¢ trusttts. togcther with a summary of theirplans and strategies for managing those risks. is set out below. Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (continued) YEAR ENDED 31 JULY 2025 RISK MANAGEMENT STATEMENT (eoDtinued) nnectedwil The tnjsiees are aware that they have a duty to take all r¢osonable Steps to en5ur¢ that the grants the Clwiry makes a￿ord with the Foundation's objectives and are used for the intrnded pllrpose by the selected recipi¢nts. To thi5 end the trus*es 5Eek detoiled infomiation from applicants for fvnding, with each individual applicant being Isked to provide.. details of their personal financi￿ wntribution towards the pU￿haS¢- quotes from cach irtdividual as a link to a wet6ite' and $upportin8 refeTEn(t5, which are a PT¢-requi5ite for irtdivid￿l music s￿dents. All references from individual applicants must be provid contact with the Foundation, its staff, tnjstees and others repffs¢niin8 IL This policy 15 reviewed by the trustees every 2 years. The Foundation's three members of sthff complete a basic DBS Check every 3 yEat5 (a criminal record check carried out by the Disclosure and Barring Ser¥i¢e; o fK)n-dcp2rtmentsl publi¢ body 5ponsoTrd by Hom¢ Office). The poteniial risks posed by the pcrfottnance of the Foundation's investment portfolio include whether it g¢n¢rntes a Sufficient re￿rn tocoverannual expenditu￿ in the short-terjn. the risk of dexreases in the markeivalue ofthe portfolio in the longer-term. which could restri¢t the Charity's ability to make grants. The steps taken by the tNsiees to manag¢ th¢se risks are described under the heading "Investments- on page 9 of this report. In additiott, the E'oundation'% investmcnt managers, Rathb)nes and Evelyo are subject io d¢tsiled regulatory T¢quircments and have extensive tntemal compliance prwedur¢5 in pla¢¢. The trLLStee5 undertake periodic formal tyviews of their investment tM)licy and the inwestm¢nt management a￿angementS. Fit7allCia Th¢ trustees awar¢ of the potential risks associated with the financial management of the Charity. Actounting and administrdtion of the Charity is carried out by UMG, which provid¢s the ￿￿￿sary support frorn its Group Finance, Se¢retsrial and oth¢r Televant functiong. An 0Th80in8 dialogue is maintained between th¢ Chief ExKutive and a UMG financial representativc. Any eause for concetn is brought to the attention of the Tr¢&sur¢r who cotnrnunicates with the ttvstees. Under the Service Agtrem¢Tht ￿ fenEd to below UMG has specific contrdebjal obligaiions to the Char￿ty regarding th¢ pN)Vision of its services. The tr￿Stee$ are satisfied with the fsnancial Servic￿ provided by UMG its a55uranct ihai all ihe financial recor¢ls are seruTely maintain¢d with appropriate financial COlllroi5. Authorisation to execute any paytnent or banking ins¢w¢lion requirE5 two signatures or two elecironic approvals. Five trustees, the Chief Executive and th¢ T￿asu￿r are authoriscd signatorie%. The Foundation h&s moved P￿d￿MIn￿llY to online payments with the Chair, Ihe Chief Executive, one trustee and ihe Treasurer approved for online banking. The Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (continued) YEAR ENDED 31 JULY 2025 Chief ExecutlV¢ 15 authorised to enter into procurement and any other agreements within finaneial ¢c￿trol$ set by the trustees llp to a limit tsf £15.000 per a￿ernellt to allow her to catyy out th¢ responsibiliti￿ of the Chief Executive. Full accounts are prepred annually and auditd by the external auditor. They are reviewed at a fomlal meeting of the tTU5t¢ts as well as in greater detail by the Audit and Finance CommTttee. In addition at c2ch trust* meeting the Treasurer reports on the Charity's finatKial wsition. RTsks (3 th UA4GSe As described al)ove atKi elsewhere in this report. throughout the year under review the Foundation l&is had the benefit of a Service Agreement with LNG forthe provision of abcowiting, website hosting and data prwessins administrative and Illsurdnce sErvic¢5, as well as funding the employmeni costs of the Chief Executive and two assistants. Since UMI'$ support and 8ervices underthe Servi¢e Agreement are donated to the Pollndation. the agreement 1$ a significant continuing benefit to the foundation. As referred to abovc under the "Changes to the Service Agreement with UMG- section, the agreement will expiff 31 July 2027. The trnst¢¢s hav¢ ¢ar¢fvlly reviewed th¢ inipKt on tkc Charity and have a]￿adY taken steps 10 streamline fvture administration costs. Strntegies potentially ￿ miiigate the impact of the loss of UMG'S 5UPPOrt in 2027 havc already been identified and will be pursued over the I￿riOd to 31 July 2027 led by the Transition committee which has been s¢1 up to oversee the transition away from UMG'S support. Riykf ialedwiihProc Personal Following the coming into forcr of the General Data Profection Regulation and assC￿l￿ted changes in data protection legislation, the processing of personal dats provided by grant applicant5 and others is an increasingly itnptrrtatyt area for the management of risE The Chatity has adopted detAiled policies and procedures which designed to assure ¢OEMplianct with the GDPR'S d&ta protection principles, includsng the requ7￿Ment for a lawful basis for processing, the nformation to be giveE) to data subjc£ts by means of th¢ Charity's detailed Privacy Notice, the reteniion and subsequent deletion of peryonal dat4 ih¢ security of data held, the reporting of data btea¢h¢s, the protection of data subjects, rights and the Charity's ability to demonsirdi¢ its ¢oMpli￿ce with the data protection Principles. The FoundatlOIl'5 policy and pro¢¢dur¢5 documentwas updatrd in October 2024 in relation to Brexst and the incoTw>ration of lh¢ Regulation into UK law. A5 at thE date of approval of this rewrt the Charity is not aware of any data bre4￿heS having occurred and no 5vbject data requests ha￿ been received. The tnjstees believe that all C￿￿ent areas of key risk have been ¢on5id¢red and that reasonable precautions have Ee¢n taken ¢0 avoid loss arising f(om th¢ identified risks. POLICIES FOR AWARDING CRANTS The Charity's grant wlicy was reviewed by the trystee5 in October 2025 meeting and approved. Key pardmeters for supportare described aEx)v¢ under ihe'objccts of the Charity, section (page 4). The trustees limitgrant making tts the UK and BI￿ and the maximum that can be appliLal for by either individuals or schcols is now £1,000. INVEsfMENTS The invesknent mana8¢rs app)inted by tbe Charity Contin￿ to present to the twstee5 or to the Audit and Fi[w￿e C¢)mmittee at leasttwice each year when the perforn￿nce of the Charity's portfolK) is reviewed, discussed and considered along with the investtn¢n¢ Strategy. Monthly valut4tiOL8 ¢ontinu¢ to be sent to the Chief Executive and Tteasurer as well as each of them continuing to hav¢ online access to ststements of the Foundation's funds. Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES, ANNUAL REPORT (continued) YEAR ENDED 31 JULY 2025 INVESTMENTS (continued) The key objective of the investment strategy is for ihe investments to produce inC0￿e and capital growth so a$ to meet the finan¢ial ¢omrnitsn¢nts of the Charity in each year. There are fornal ￿reementS in place between the Chariry and each investrnent manager which cover, amongst othEr matters, the Charity's investrttent EM)li¢y 8nd ¢ertaiii limithiions on the Tnanag¢TS' investment powers. The trustees continue to ￿¢¢ive ￿￿th face to face and prirrttd updates from each mana8er so as to closely rnonitor performance. AS part of their munitoring of the managers, performance and thc most apPr￿rIate inve5tmeni obje¢tiv¢s, the trustees have instigated periodic stress testing of the Foundation's funds to shi)w arange of outCQm¢s against diff¢renl levels of Esset ￿rfOrniance and ofgrant and othcr 5UPPOrt expenditure. FUNDRAISING The Clwity did not ¢arry ou¢ ony fundrasing during the year. DETAILS OF RELATED PARTIES The Charity has one wholly owned subsidiary. MSFC Limited (company registration number 03287591, registered addre5$ 4 Pan¢ras Square, t￿ndOn NIC 4AGI, which is incorporated in the UK. MSFC Limited has ente]ed intr a deed of coyenanl wh¢r¢by it cov¢nants its taxable profLt5 to the Charity. MSFC Limited had no material trans￿tionS in the period under review. Th¢re were no transaction5 between MSFC Limiied aDd the Charity in the ¢urrent or prioryear. The balance owed by the subsidittry is shown in rtote I l. There is a Service Agre¢meni between the Charity UMG. whereby UMG funds th¢ Salaries and oiher ernployment costs of the Chief E%e¢utive and support staff and the annual audit fe¢ as well as providing website hosiillg and data proccssing. insuran¢eand variou5 a¢couniing. administrative andother supportservices. 'fh¢ inguraThccs provided through UMG include Directors and Off]re￿ insurance for the tr115*es. UIMG a150 thna*s £IO.000 to ihe Foundation annually. As described above under the"Changes tothc SeTviee Agreement with UMG" se¢tioN on 31 July2024 ihecharity entered into an aniend¢d Service Agreement with UMG the Changes under which took effect from l AUg￿$t 2024, in¢ludin8 the three Tnetnbets of siaff becoming dired employecs of the Charity as of that date. Th¢ Service Agreement will terminate on 31 July 2027. In Ju]y 2019 th¢ Foundation erttettd into a fornlal agreement with Decc3 RecortLs, part of Universal Music Group. for the creation, op¢ration and adminis￿lI￿n of the De¢ca Bursary (a restri¢led fund of the Foundation). Approv¢d by the trustees on 24 March 2026,. And sI￿¢d on fheir bdjalf am Barker (Chair} io Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION TRUSTEES. STATEMENT OF RESPONSIBILITIES YEAR ENDED 31 JULY 2025 Thr tTUStees (who are #Iso dIre¢tr)rs of Universal Mllsic IJK %ound Foundation for thc putyoscs of company law} a resw)nsible fOrprep￿7ng the TJustees' Annual Report and the financial ststements in accordance with applicable law Ullited Kingdom Accounting Standards (United Kingdom Generally Accepted A¢¢ounting Pr￿ti¢¢) in¢luding FRS 102 "Tk Financial Reporting Standard applicable in tly UK and Republic of Ireland" Company law reqUI￿S the trustees to p￿pare financial siat¢ments for ¢￿h financial yearwhich give a trne 2nd fair view of the stste of afrTairs of the ¢haTiiable ￿MpanY and of the incoming resources and application of resources, including the income and expertditure. of the char5table company for that period. In preparing ihese financtal stsl¢ments, the tn￿te¢S requirEd to.. selcct suitable accountingpolicies and then apply them con5iStffltly observe the methods and principles in the Charities SORP.. make judgments and ¢siima*s that ar¢ reasonable and ptvdent- state whetherapplir2ble UK A¢¢ounting Stsndards have bttn followel. and prepare the fInaneial statements on the going concern basis unless it is inappropiiate to Pr￿urne that the charitable company will continue in business. The t￿￿te¢S are responsible for keeping adequate a¢¢ounting records that disclose with reasonable accurdcy at any time the finan¢ial p￿ttIon of the charitahle company and enable them to ensure that the financial statcmeThts comply with the Companies A¢t2006. They are also responsible forsafeguardingthe assets ofth¢charitsble company and hence fortaking reasonable steps forthe pr¢v¢ntion and d¢t¢¢th)n of frnud and other irregularities. In 50 faras the trustees a￿ awarE- there is no relevant audit IDfomiation of whi¢h the charitable company's auditor is unaware- and the trustees hav¢ tsk¢n all step5 that they ought to have taken to make themselves aware of atty relevant audit information and to establish that the auditor is aware of that infomiation. The trustees are responsible for the maintenance atmfj integrity of the corporate and fiDancial information ￿ClUded on the charitable company's website. Legislation in the United Kingdom goveming the preparation and dissemination of fjnancial statements may differ from legislation in other jurisdictions. Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSAL MUSIC UK SOUND FOUNDATION Opinion We ha￿ audit¢d th¢ financial stytements of UniveNI Music Sound Foundation Clhe charitable COTnpany") for the Y￿ar ended 31 July 2D25 which comprise the Statemeniof Financial Activities (in¢oTporatingthe income and expenditure account), the Balance Sh¢et and the relat¢d notes. including a surntnary of signifi¢wJt accounting policies. The financial reporting fra[new0￿ that has been opplied in their preparation is applicable law and unL￿d Kingdom Accounting Standards, in¢luding Financial Reporting Standard 102 "rhe Finanrial Rewrting Standard applicable in th¢ UK artd Republi¢ of Ireland" (United Kingdom G¢n¢rally A¢¢epted Accounting Pra¢ti¢e). In ouropinion the financial sthtemenrs.. give a true and fairview of the slate of the charitable company's affairs as at 31 July 2025, 2nd ofihe incoming r¢5ourC￿ and application of resources, including its ithcome and expenditure, for the yearthen ended- have beeD Properly prepared in accordance with United Kingdom Generally Accepted Accouniing Prdctice,. and h8v¢ been pr¢p3r¢d irt a¢¢ordanc¢ with the requirements of the Companies Aci 2006. Basrs for opioion We conducted our audit in accordance with International Standard5 on Auditing (UK) (ISAS IUK)) and #pplic#ble liw. Our Te5ponsibilities under those standards are further descTibEd in the Auditovs re5]￿nsIbilitieS for the audit of the riDan¢ial statements section of our report. We are independentofthe company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including thc FRC'S Ethical Stathdard. and we have fulfjllcd our othcr tthical rcstKTrnsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffjcient and appropriate to provide abasis for our opinion. conclus￿￿5 relating to goiTh8 CODcEr Ill auditing the fLnan¢ial Stat￿n¢￿t5, we have ¢on¢luded that the ¢n]srees' use of the goihg concern basis of a¢couniing in the preparation of the financial siaiements is appp¢4)riate. Based on the work we have ptrfomcd. we have not identified any matevial uncertainties relating to events or conditions thaL individually or collectively, may east Si￿1r1eant doubi on the ¢haritabl¢ Company's ability kn continue as a going con¢¢rn for a period of at least twelve months from when tht fiRanciitl Statements are autI￿rised for issue. Our responsibilities and the ￿SponsIbl11t1eS of th¢ IrusteES with TES￿¢ to goin8 Co￿eM are described in the relevant sections of ihis ￿port. Other i￿rOr￿all0￿ Thc tNstecs are rcsptsnsiblc for the other infomiation. The other infornation cornprises the inforniatioll included in the rew>rt of the trusttts, other than the financial ststem¢nts and our auditor'5 rep)rt th¢tEon. I￿r opinion on the financial stat¢m¢nts does not cover the other information anl except to the extent othetwise explicitly stated in our repr¢ we do not express any fom) of assur8nc¢ conclusion thereon. In ¢onne¢tion with our audit of the financial statements. our resp)n5ibility is to ftad the other inforniation and. in doing so, consider whether the other infortnation is materially inconsist¢nt ￿'1th the fmancial statements, or our knowledge obiain¢d in the audit or otherwise aprkat5 to be Mattrially rnisstated. If we identify such material inconsistencies or apparent material misstatements, we are ￿qUIred to detemiine whether there is a materia] misstatement in the fin)n¢ial statements OT a material misstatement ofthe other inforniatwn. If. based on the work we have perfomed, we conclude thal thete is a material misstatement of this ot￿r inforsllalion, we are required to reJx)rt that fa¢¢. We hav¢ nothing to r¢port in this r¢8ard. 12 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSAL MUSIC UK SOUND FOUNDATION (continued) Opinions on other matters prescribed by the Companie$ Act 2006 In our opinion, bas￿ on the work undertaken in the coutse of the audit.. the inforniation given in the directors, 8md tNsfre$' a]]nual report for the financial for whi¢h the financial siatements ￿¢ prepared is consist¢nt with the flnaneial staiements.. and the directots. and trLStees' annual report hzs been prepared in a￿OrdanCe with legal r4uiremeDts. Matters wbich we are required to report by eiception In the light of our knowledge a￿j understanding of the charitable ¢ompany and its environment obtained in the ¢ours¢ of th¢ audiL we hav¢ not identified material Tlli55tatements in the directotB' and tnstees. annual report. We have nothing to report in re&￿t of the following matters in relation to which the Companies Act 2006 r¢qU￿ us to T¢FKlrt to you if. in ouropinion= adequate and sufficient ￿¢OUnt1rtg records have not been k¢pt by the Charitable company, or returns adequate for our audit have not received from branGhes not visited by us. or the charitable Company's fitwicial statements are not in agreement withihe accounting records and r¢turns- or ertain disc[￿Ur¢S of tru5tees' rernuneration specified by law are not made,. or we have not re¢¢ived all the infotmation and explanations w'e require for tsuraudii; ¢)r the tnLStees were not entitled to pr¢par¢ the financial statements ￿ accordancc with the smallcotllpanies. regime and take advantageof the small companitt. exemptions in prepwing the Directors, and Tru5tee$' Annu&l Report and from the requirement to p￿pare a strdt¢gi¢ report. Responsibilities of trustees As explained mott fully in the trustees, statement of resp)nsibilities. the trnstee5 (who are also the directors of the charitable company for ihe pu￿osES of tompany law.) are responsible for th¢ preparatb)n of the finarKial statements ar for being satisfied that they give a true and fasT view. and for such internal control os the tr￿￿te¢S detemiiTre is necessary to enthle the preparation of financial sratements that are free fmm material misstatement. whether due to fraud or error. In prepaTingthe fjnancial statements. the tru5ttes are rcspoI￿IbIe forassessing the charitable company's ability to¢oniinue as a goll￿ concern. disclosing, as applicable, matters related to going conr¢m and using the going con¢em basi5 of a¢¢ounting unless the tn]5t¢¢s either intend to liquidate the charitable C4)mpany orto Cease operation5, or I￿ve no realisli alt¢m￿1ve but to do so. Auditor's rtsponsibilities for the audit of the fth#n¢l&l ststeMeAts OUrobj￿tiVts are to obtain r¢&%onable assurdn¢e aknutwhetherthe financial 51atemcnts as R whole are f￿¢ (rom material misstatemenL whether due to fraud or error, and to issue an auditor's report thu include5 Our opinion. Reasonable assuraDce is a hiO] level of assurance but s not a 8uaran*e thal an audit condu¢ted in ￿COrdanCe with ISAS {UKI will always detect a maierial mi5ststement when it exists. Misstatemeiits can arise from fraud or error and ar¢ ¢onsidered t¢rial if, individually or in th¢ aggrtgat¢, th¢y could T¢astsnably be expected to influen¢¢ th¢ ¢cortomic decistons of users taken on the basis of ih¢se financial statemtnts. I￿¢gularitics, irtcluding fraud, are instan¢es of non-compliance with laws regulations. We design procedure5 in line with our resporsibilities. outlined aly)ve. (o de*ct material misstattments in respect of irreguiariÉie5, in¢ludin8 fraud. The extent to which our procedures are capablE of detectin8 Irregularities, including fraud is detailed below: Our&%sessment roc￿4ed Key laws and regulaiions the charitable company has to comply with and area8 of th¢ financial 5talcments we assessed as ￿Ing rn0￿ susceptible to misstatemeni. These key laws and regulations included but were not lirnited to wrnpliance with the Companies Act 2006, Charities Aet 2011, t&X8tion legislatioN data proteciion and employment le8151ation. 13 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSAL MUSIC UK SOUND FOUNDATION (continued) Auditor's rupoosibilities for the audit of the financial statements {continuedl We are not ￿spOnSible for preventing inYgulariti¢s. Our4)proach io detecting i￿¢gUlarItieS in¢ludeiL was not limittd to, th¢ following.. obtaining an undetstanding ofthe legal at¥J regulatory framework applicable to the charitable company and how the ¢haritsble wrnpany is complying with that frdmework. including agreement of fillancial sta*ment disc105ures to underlying documenration and other evid¢TKe', obtaining an understanding of the charitable company's control envsronment and how the charitable ¢ompat)y has applied relevant control procedureg, through dis¢w￿$1￿]S with manag¢ment and by perFomiing walkthrough testingover key arw., obtaining an ￿nd¢￿tanding of the charitable company's risk asse5sm¢nt pro￿$$, including the risk of fraud,. reviewing meeting minutes of those charged with governonc¢ throughout thr year, and perforniingaudittesiing to address the risk of tnanagem¢nt ov¢rrid¢ of control4 including testin8 joumal entries and other adJ￿$tsThents for appropriateness. evalLthÈing th¢ business rntio]Mle of significallt trdfh5a¢tions Cputsid¢ the norn￿1 caurse of business. and reviewing accounting estimates for bias. Whilst ¢ODsidwng how our audit work addressed the detection of irregularities, we also ronsidered ihe likelihood of detection based on our approach. Intgularities arisin8 fraud are inheTYntly difficult to detect than those arising from error. Because of the inherent limitations of an audit. there is a risk that w¢ will n()t detect all i￿egUlarItIeS, including those leading to a material misstaten]¢nt it] the financial ststemenis or noll.compliance with ￿gUlatIOn. This risk inereases the more that compliance with a l&w or regulation is removed from the events and tixn5actions reflected in the fJnan¢ial stRtements, us we will be kss likely to become awa￿ of insttnccs of non4ompliAntt. The risk is also gTealer regarding irregularities occurring due to fraud rather ihan eTror. as fraud involves intentional coneealmen¢ forgery. collusion. Oml5sion, ormisrepres¢ntstion. A further description of our responsibilities forthe audit of the financial statements L5 located on th¢ Financial Reporting Council's webskte at.. www.frc￿rg.uk1&￿ditorsre5po￿5ibllltIt$. This description forms part of our auditor'5 reporL Use ofour Ye￿rt This r¢port i5 rnade solely to the charitable company's membe￿, as a iK)dy, in accord￿Ce with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has Ixen und¢rtaken so that we might state tothe chaTit&ble¢ompany's members Iho% matters we are required to statety them in an auditor's reportond fornoother Pu￿$e. To the fullestextentpemiitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company'5 members &% a EKxly. for our audit work, for this repor4 or for the opinions we have ftsmied. SvJnEd by.. E8B150CA03AO Glen Bott FCA Senior Statutory Audit(pr for and on behalf of- Cooper Pany Group Limited Statutory Auditor Cubo Birmingham Two Chamberlain SquaTe Binning1￿M B3 3AX Da*.. 25 March 2026 14 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 JULY 2025 I,￿r¢StYle￿d F￿1 2025 Re$triited FuDd 2025 Total FllHd5 2025 Umt¢$tric*d Fund 2024 Resthckd Fund 2D24 Totsl Funds 21124 NOTE INC011E Don8iK)ns 19D,111 I80￿2 234,133 194,191 234.249 194.191 Inv¢slments 180J42 TOTAL 1￿cO￿lE 370,453 37•853 428J24 428,440 EXPENDITiQiE Inve5tmeDtm2nagen*Trl¢OSts ChartMble ￿tiVities 150.5351 lJ62.4401 15DO351 15688511 16.014 1767.4931 129.565) 1797.0581 TOTAL EXPEP4DITIIRE 1612,9751 16,0141 16189891 1819.3241 129.565 1848,8891 NKT IEXPENDITUREV INCO.IIE BEFORE PIVgSThlEhT GAThS 1242J221 16.0141 12485361 I391.0￿) 129,4491 1420.4491 Realised1105se$Ygains on dispos￿1 of invc51tN¢nts Unrealised (loss￿Y%4lnsQll inv¢slm¢nts 193,7881 (93,7881 169.1901 169.190 341,429 341829 613,584 613,534 N¢i1105s¢sy8ains ort investments io 247,641 247ffj41 544.394 544.394 ET IEXPENDITi'REy INCOIIE FOR THE I'EAR I ￿ET IIOVE￿lENT I 16.014 (8951 153 J94 129.4491 123,945 RECONCILIAIIO.Y OF FITNDS Total funds brou¥bl hrward N¢tm¢vemenL funds 7.061.369 15.637 (6.0141 7077,1)Tr6 (8951 6,907.975 153.394 45.086 (29.449) 6,953,061 123.945 TOTAL FIINDS fARRIED FORII'ARD 7.066,488 9.623 7.076.111 7.061.369 15th37 7.077.006 All of the above omounts relate to coniinuing ￿tIVitIes. There were no other reeognised gains or losses other than those listed above and the net irKornel{ex￿ndlture) for the yEar. The Charity tsken the exemption from preparing group accounts und¢r section 405 of the Companie5 Att 2006. 15 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION BALANCE SHEET 31 JULY 2025 Lnrestrlrkd Reslrlctcd Fund 2025 Total Fulld5 2025 UnT¢stric*d ReStri￿¢d Fund Fund 2024 2024 Total FU￿d5 2025 2024 40TE FLXED A&SETS Inv¢5trnents in subsidiariE5 Other investments 7,074.250 7￿74350 7.082.083 7.082.D83 7.074.251 7074351 7.082.084 7.082.0&1 Ci1RREYT ASSETS Debtors 222 222 222 222 C8sh41 bank 15.705 14.674 30J79 4,134 23.787 27.921 15,927 14.674 30,6111 4,356 23,787 28.143 CREDJTORS: *thwnt$ fAllI￿1 du¢ witlii one year 12 123.6901 15.ojll 128,7411 125.0711 18,151)) 133.2211 NET CUiiRENT A5SEThILIABILITIES) 17.7631 9.623 1060 120.7151 15,637 13.0781 ET ASSETS 7,0(￿,488 9.623 7076,111 7.061.369 15,637 7.077.006 FIINDS uJ￿([l￿d 13 7.066,488 7W66A88 7.061J69 7.06lJ69 Restiickd 13 9,623 9hLI l5fi37 15,637 TOTAL FIINDS 7.066.488 9,623 7076.111 7,061,369 15.637 7,077.N6 The a¢¢ounts have be¢n pr¢pared in accordance with the special provisions applicable t(p companies SEd)jeet to th¢ small ¢omp2nies regime. These finan th¢ir behal tstements were e4pproved by ¢he tnjstes and authorised for issue on 24 March 2026 and signed on Adam Barker (Chairl Company R¢&istration Nymber.. 05062390 16 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 ACCOUNTING POLICIES of preparatlon The financial statements have been prepared in accordance with Accounting and Rery)rting by CharitiCs-. Statcmcnt of Re¢ommended PractÉcc applicableto charities preJxringtheiraccount5 in accordatKe with Financial Re￿rtIng Standard applicable in the UK anil RepubliG of Ireland (FRS102), eff￿tIVe l January 2019-to be abbreviated as Charities SORP (FRS102). The Financial Rew>rting Standard applTcable in the UK and Republic of IrelaTrd IFRS102) and the Companies Aci 2006. The Charity meets the definition of a public benefit entity under FRS102 and is in¢ony)rated in England and Wai¢s as a company limited by guarantee, not having a ghare c&pIt￿ (note 16). The Charity is a registered charity. The regISte￿d office is given on page l. The fJnan¢ial statements have been prepAred under the historical cost convention. except for investrn¢nts which ar¢ irKluded at market value. Exemptiort fTOJlI prep8ring £oN501idated at¢ounts Under section 405 of the Companies Act 2￿ the Charity h&% opted rK)t to prepare con501idated accounts. For both 2023124and 2024125 all subsidi8ry und¢rtakings may be ¢x¢luded from consolidation in line with the thresholds in section 405 of the Companies Act. The Charity's only subsidiary excluded from consolidation ts MSFC LTmiled1032875911, excluded undersectign 405 (21 of the Companies Act 2006 ￿ the subsidiary is inaciive and no¢ nvdierial to the group. Cash flow Statethent St8tement of Chgnge in Equity The charilable ¢omkMny has not prepared a cash flow stsiement nor a statement of ¢Ewige in equity as th¢ Charity is not a larg¢r entity as defined by the SORP and ￿ a small compally as defilled in the Companies Act 2006. Going coneerrt The financial statements have been prepared on a going concern basis. The trust*s have a reasonable expedation that the Charity adequate resollwes to continue in operational existen¢¢ for ihe foreseeable fvture. The trustees of the Charity have considered the Charty's position and have detennined th* the Charity has sufficient funds to continue to operate as a going wncern for a period of rwelve months from the date of signing. The Charity's grant funding activitits ar¢ generally funded through the investsneni portfolio held. The trustees o]e confidenl that it is 7dppropri&t¢ to ¢onsider the Charity a going concern. Expenditure Charitable a¢tiviiies expenditure comprises grants made inaccordance wilh the defjned charitable puw>ses of th¢ Chariry. GovernJnce costs include expenditutE incurred on cotnpliartce with constitutional and statutory requirernents. Support costs, tnrluding management and athninistrdtion costs. have been allocated against charitable activities. No support costs have been allo¢ated to Jrstricted costs as They &re iMMa￿ri&l. A commitment is made when grdnts are approved by ihe trustees and communicated to the applicants. Grants are recorded s expendiiur¢ on the basis of these amounts. Debtors Debt0￿ a￿ recognised where the Charity is owed fimds by a third party. They are measured at the recovtrablc amounl which include5 any provision for bad and doubtful debts. Creditors credito￿ are recognised Whe￿ the Charity has a preseni obligation Tesuliing from a pgst event that will probably result in the transferof funds io a third party and the amount due to settle 17 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 AccouKfiNG POLICIES {coDtinued) Deferred locome Lkfrrred income is r¢cogni5¢d Whe￿ funds have been received during the accounting period, but for which the Charity has unfvlfilled obligations relating to those fijnds whÈch will not be Izrried Dut until subsequent a￿oUntIng periods. Income All income i% credited to the sthtement of financial a¢tivitie5 on an xcnjals b&%15. Service5 donated io the Charity are included as"Donations" at cost at the tirne of receipt. All incoming resources are accounted for on art accruals basis and are included in th¢ Stat¢ment of Financial Activities when.. the Charity F*comes entitled to the Tt50urces' the iwsiees aniicipate that they will recetve the re5(￿rceS-, alld the monetary value can be measured with sufficient reliabilaty. Tgx&tion The Charity i5 considered to pa5S thE tests Set out in PaTagrdph I Sehtdule 6 Finance Act 2010 and therefore it meets ihe d¢finition ola ¢haTitabl¢ ¢ompany for UK corporation putPOS¢s. Accordingly, th¢ Charity 15 ¢XElllPt from tsxalion in respe¢t of income or capital gains received within categolles covercd by Chapter 3 Part I I CoTporaiion Tax A¢1 2010 or Section 256 of ihe Taxation of Chargeable Gains Act 1992, to the extent thai sueh incomeor gains a￿ applied exclusively to charitable purposes. Investsnent assets Investments. excluding inv¢5tm¢Ttt in subsidiaryb are ¢I￿sified as financial assets at'fair value through profit and loss" Thc5c arc me&8urcd at market value as at the balance sheei date. Realised and unrealised gains on investments are recognised in the statement of financial activities. Th¢ Charity m¢a5ures ￿NVeStments in subsidiary undertskings at cost less impainrjent. In the current and prior ywall inv¢stsn¢nts held by the Charity are held in unrEstrKted funds. Fin&n¢ial instruments Financial assets and financial liabilitits are recognised when th¢ Charity becomes a party to th¢ contractual PTOW510D5 of the instrument. All financial assets and liabilitie5 are inilially measured &t ÈraTh8action price {includiThg transaetion costs). except for tFK)se fJn8rtcial assets classifitd as at fair value through profit or1055, wliich are initially Tneasured at f&irvalue (which 15 normally the transaction price excluding transaction ¢ost5). unless the arrdngement con5titute5 a finallGing transaction. If an arrang¢m¢nt Col￿tItuteS a finance transaction, the financia] asset or fillancial liability is measured ai the present value of the futuTr payments discounied at a market rate of interest for a 5llniiar debt instwmenl. The accounting policy for investments is stated aEove. Trade and other debtot5 are ￿cOgniSed 0¢ the s¢ttl¢ment amouTht 2fier any trdde discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and cash in hand includes ush and short term highly liqyid investments wilh a short mamriw of three montlL% or le55 from the date of acquisition or opening of the dep051t or similar account. Creditt>rs and provisions are recognised where the Charity has a present obligation resulting from a past eventthatwill probably result in thetrdll5ferof funds to athird party ond th¢ amountdue to settle the obligation ¢an be ni¢asured or ¢5tifflated reliably. Credilots and pn)visions are norrnally recognised at their settlement amount after allowing for any trade discounts due. Critital Judgemertts And SoU￿eS of estlmatlon uncertainty Thcre key sources of estimation uncertainty as at the reporting date. 18 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 DOIYATIONS Unrestricted Fund5 R¢3tritÉed Funds Total Funds 2025 Total Funds 2024 Donations received Donated services and facilities 174,361 15.750 174J61 15,750 10,766 223.483 190,111 190,111 234,249 During th¢ 12-month period ended 31 July 2025 Universal Mu5ir Gwup Intemational Limited {"UMG") knre the Charity's employment costs in respect of its three staff and pwvided other financial support and seryi¢es frte of charge to th¢ Charity. Under the i¢mis of the Charities, Statement of RecomTtaended Pra¢iice, th¢ Charity records the commercial benefil re¢eived from LMG as donated services and facilitlE5. with an equivalent being included as expenditure und¢rappropri*te headitjgs. The income of £15.750 {2024- £223,483 relating to seconded staff and audit fees) recognised is based ort the actual ￿st incurred by UMG. relating to the audit fees. All donations the Charity receives in ￿sp￿t of the Decca bursary have been Teeognised as a ￿$trIcted fvnd. JP4COME FROM INv£sfMEIYTS Unrestrieted Funds Restricted Total Fyndg 2025 Total Fund 2024 Fllnds Income frorn investments 180,342 180J42 194.191 EXPENDITURE ON CHARITABLE AcfiviTIES Grant expenditure is in furtheTan¢¢ of the Charity's objectives. Unrestrltt Funds Restricted Funds TotAI Funds 2025 Toral Funds 2024 Donations to schooLs Donations to individuals Butsaries S¢hools Project Other 185,893 44,245 65,000 93.887 5,000 190,893 44.245 65,000 93.887 737 277,540 89,649 65,000 117.429 23.400 737 Gr*Dt expÈnditure Support costs (note 6) Govemantt costs {note 5) 389,025 152.789 20,626 5,737 394.762 152,789 20.903 573,Ol8 207,733 16.307 277 562.440 6,OJ4 568,454 797,058 The schools Pmj¢ct 2024-25 is described fvrther in the trustees, report under the Achievements and Performance stslion on page 5. 19 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 GOVERNANCE COSTS Unrestrltted Fund$ Restrlcttd Fund8 Tot*1 Funds 2025 Totsl Funds 2024 L¢gal fees Audit fees Other costs 2,790 15,750 2.086 2.790 15,750 282 15,750 275 277 20,626 277 20,903 16.307 SUPPORT cO￿s Total Funds 2•25 Total Funds 2024 Staff costs Other rnana8ement and administration 147,532 5257 207,733 151789 207,733 Management and administrative costs are bome by UMG under the Service Agreemeni refenEd to in Nok 14 below. These c05t5 are illocated to tharitable activities. AUDITOR'S REMUNERATION Audii fees of £15,750 (2024 - £15,75DI aTe borne by Univer581 Music Group Inttrnational Limited, which has not JE allocated any ftts lo the CEwity. STAFF COSTS AND EMOLUMENTS Total Funds 2025 Tor81 Funds 2024 Wages and salaries Social security ¢osts Contributions to defin¢d Ixnefit pension schemes 99.903 38080 9,049 147,532 Since l August 2024 the Charity staff are employed directly by the Foundation and their employment costs are techarged to UMG under the Service Agreement refetTed ty in Note 14 b¢low. Of these staff, the number whts5e remunerntion for ihe year fell withKn the following band5 was= 201S 2024 £60,000 10 £70,000 £70,000 to £80.000 £80,000 to £90,000 £90,000 to £lOO.000 20 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 The trustees cottsiderthatthey, togethcr with the Chief Exeeuiive who during the year was the highest paid employce. are Ihe key management peJsoJmcl of thc ch￿ltY. The tru5tecs (sn¢luding the Chair) r￿elVed no emoluments {2024- £nÈll. No I￿￿TeeS received reimbursements for travel expen5¢s incurred during the year12024- £nill. No trustres incurrcd out of pocket expense512024 - £nil) for which they were reimbuTsed. No member of the board of trustees had a material interest in any wntract or trattsaclion with the Charity or its subsidvary in the ¢UTr¢ntor prior year. INVESTMENTS IN SUBSIDIARIES Th¢ Charity has one (2024.. one) wholly owned 5ub$idiary. MSFC Limited, which ss held at *value of £112024: £11. The company was inadive dursng 2024125 and durin8 2023124. This Subsidiary has not b¢¢n consolidated and presented as part of grn￿p accounts. Please refer to note I for further detsils. 10. OTHER INVEsfMEIYTS UMrestrl¢ted fllDd: Movemellt in market value of listed Investmertts 2025 2024 Market value ￿ l August Acquisitions at¢osi Disposalb dt market Vydlue Net {losses)Igains on revaluations in the y¢ar 7,064,933 1,465,729 (1,718.033) 247,641 6.795,157 1,757.970 (2.032.588) 544,394 Market value at 31 July 7,Ib60,270 7,064,933 Historical cost at 31 July 5,582.735 5.734.075 Angtysis of inve#tm¢nts 1$ gt 31 Jllly ￿tWeeN funds Total Funds 2025 Total F￿Trds 2024 Listed investments UK [￿0t¢d entities Non-UK Quoted eniiiies UK fixed interest Non-UK fixed intcrest UK- other inv¢stsThent8 Non-UK - other investments 1.6711J96 3.737,151 106,839 1,632,748 3,707,404 106,893 124,755 757.052 736.081 781,5115 764J79 7,060.270 7.064,933 Other luv¢$tsn¢nts UK C&sh held as pan of Portfolio 13,980 17,150 7,1174350 7.082.083 21 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 11. DEBTORS: Amounts falling dut within one year Uorestricted Funds Restricted Fund$ Total Fwnds 2025 Total Fund5 2024 Atnounts owtd by group undertakings 222 222 222 222 222 12. CREDITORS: Amounts falling due within ODe yefir Unrestrktsd Ro$tricted Totsl Fund5 Total Funds 2024 Fund5 Funds 2025 Gr)Int Commitments Brought fO￿ard Grants approved Grant5 paid Grants Un¢laimedl&￿¢eI1ed 25.071 466,484 1390,405) 177.460) 8,150 5,737 (8,836) J3221 472.221 (399,241) (77.46fl) 33.728 608,187 {552,377) {64,467} Carried forward 23,690 5.051 28,741 25,071 Accruals 8,150 23,690 5,051 28,741 33,221 13. FIINDS Balance as at Totsl Income l August 2023 Totsl Expenditu Gains and losses Ballnee as at 31 July 21124 Unre5triGted Fund 6,907,975 45,086 428,324 {819,324) 129,5651 544.394 7,061,369 15,637 Re5triLted Funds Total Funds 6,9S3,061 428.440 {848,889) 544,394 7,077,006 Bilante as gt Totsl Income l August 2024 Total Expenditure Gains and 105se5 B8laDoe 0$ Èt 31 July 2025 Lnrestricted Fun¢ts Restricted l.unds 7.061.369 15,637 370.453 {612,975) (6,0141 247,641 7.066,488 9.623 Total Funds 7.077,006 370.453 1618.9891 247.641 7.076,111 The restricted fund was set up in 2018-19 to deliver the Decca Bursary, as described in the InJstee5 'rcwrt. 22 Docusign EnvelopÈ ID". D2247E4C-365F478>92CD-31BF7EB778E2 UNIVERSAL MUSIC UK SOUND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2025 14. RELATED PARTY TRANSAcfIoNS The trustees do not w¢iv¢ r¢mun¢rdtioll for their se￿7¢t$. Further details are given in note 8 of the accounts. As described in the trust¢es' r¢port und¢r the "Change5 to the St]vice Ag￿eMent with UMG" section, ott 31 July 2024 the Charity enttTEd In￿ an amended Setvice Agreement with UMG the changes under which took effect from l August 2024. fftcluding the three members of 5tsff becoming direct employees of the Charity as of that dat¢. Under ihe Service AgrEemer]t UMG reimburses the Charity for the colts of employing the three membets of sthff. UMG also beats the Charity's annual audit fee and provides free of charge website hostuig and dara pro¢essing. irfjuranee and variou5 a¢countin& administrative and oihersupw)rt services. Insurdnc£5 through UMG include D1￿ctorS and Officers Lnsurartce for the trustees. UMG also donates £IO,QOO to the Foundation artnually. The Sejvice Agreement will terminate on 31 July 2027. During 2018119 the Fowidation ¢ntered into a fortnal agr¢¢t]]¢nt with Dec¢a Re¢ord4 part of Universal Music Group, for the creaiion. operation and administration of the De(ta Bursary. Adam Barker. Chair of UniveT5al Musi¢ UK Sound Foundation is aLso a Director of D¢c¢a Musi¢ Group Ltd. 15. POST BALANCE SHEET EVENTS There have been no pst balance sheei events which would materially impact the financial statements as pr¢s¢nted here. 16. LIABILfTY OF MEMBERS Univ¢t5al Music UK Sound Foundation is a company limited by guarantee and d0¢5 not haye shar¢ capital. It is ￿giSte￿d in England and Wales (charity No.1104027, cOm￿Y registration nuinber.. 05062390) and its regi8tered offie¢ i$4 Pancr&8 Square London NIC 4AG. In the event of Universal Music UK Sound Foundation being wound up the liability of each of the Members is limited to £1. 23