Slide 1: Other Relevant Information filing notice
Madrid, January 31, 2024 Making Science Group, S.A. (hereinafter, "Making Science", "Making Science Group", the "Company", or the "Group"), pursuant to the provisions of Article 17 of Regulation (EU) No. 596/2014 on market abuse and Article 227 of Law 6/2023 of 17 March on Securities Markets and Inv
Slide 2: Investor Presentation: Q4 2023 and 2023 Earnings Preview
FEBRUARY 1 RESULTS 2024 INVESTOR PRESENTATION Q4 2023 and 2023 Earnings Preview José Antonio Martínez Aguilar CEO Making Science
Slide 3: Disclaimer
Disclaimer This document and the conference-call webcast (including the Except as required by applicable law, Making Science does not Q&A session) may contain forward-looking statements and assume any obligation to publicly update the Information to information (hereinafter, the “Information”) relat
Slide 4: Table of contents
Table of contents Q4 2023 and 2023 Earnings Preview 01 Overview of Making Science 02 Where are we today in the development of Making Science? 03 Core Business: Expansion in the United States, Reseller Google Marketing Platform 04 Investments: E-Commerce & Products 05 Q4 2023 and 2023 Results 06 Guid
Slide 5: Overview of Making Science
01 Overview of Making Science 4
Slide 6: Who are we?
Who Making Science is a marketing and technology consulting firm helping companies accelerate are we? their digital capabilities Making Science is an international digital acceleration company with more than 1,200 employees and presence in 15 countries. Making Science's business focuses on the high-g
Slide 7: Making Science's Services
Making Science’s Services 360º Capabilities Performance Measure Paid Media Campaign Analytics, CRO, Management & Dashboarding Programmatics & Big Data Identify & Design eCommerce Creativity SEO Customer eCommerce Strategy & UX Platform Content & Content Platform Management Brand Identity and User Ex
Slide 8: Core Business: Making Science's Services
Making Science’s Services Overview Activity Examples of services Advertising Consulting Organic Advertising Consulting Creativity and Content Marketing Search engines, social networks Organic search engine optimization (SEO) Brand strategy, content Digital and other means of and social media optimiz
Slide 9: Our Flywheel
Our Flywheel Complementary, high-growth business lines that reinforce the value proposition to the client Technology, Cloud We have a large number of software engineers, data engineers and data scientists developing digital platforms & Software and proprietary technologies. AdTech & MarTech Digital
Slide 10: Some of Our Clients
Some of Our Clients We create value through integrated solutions to deliver a 360-degree, results-oriented experience 9
Slide 11: Working with the Largest Global Platforms
Working with the Largest Global Platforms Experienced in all channels of the digital ecosystem We are partners of the main Google technological players in the sector, Security which gives us a complete vision of the digital advertising ecosystem. Our way of working is Full funnel Partners activation
Slide 12: Where are we today in the development of Making Science?
02 Where are we today in the development of Making Science? Where are the new opportunities? 11
Slide 13: Evolution Phase of Making Science
Evolution Phase 3 of Making Science Revenue (millions of euros) The company is entering its Phase 3 This graph is shown for illustrative purposes only and does not constitute guidance on the company's future performance. PHASE 1 PHASE 2 PHASE 3 12
Slide 14: Phase 3 of the Company
Phase 3 of the Company What does it consist of? THE COMPANY THE COMPANY MUCH HIGHER IS ALREADY DOUBLES IN OPERATING VERY LARGE SIZE EVERY LEVERAGE AND AND 3 OR 4 YEARS ECONOMIES OF DIVERSIFIED SCALE THE GEOGRAPHIC LOCATION OF THE THE COMPANY CAN THE COMPANY WILL COMPANY'S SERVICE LARGER BE MORE RESO
Slide 15: Investing in Growth
Investing in Growth Google Certifications EMEA USA LATAM SPAIN UNITED KINGDOM FRANCE ITALY UNITED STATES MEXICO COLOMBIA 9 delivered 4 documented 1 documented 2 documented 8 documented 9 capable N/A 2 documented 7 capable 9 capable 8 capable 3 capable 7 partners 16 partners 16 partners 12 Sales Creat
Slide 16: International: Development Status
Making Science's Development Status in 2019 Slide used in the IPO document Competitive strengths One-stop Integration Technological Top partner Customer supplier specialists capacity technologies proximity Approx. gross Examples No. of 360º digital marketing range Specialization / degree of Technolo
Slide 17: Comparing our Geographic Presence
Comparing our Geographic Presence With that of our competitors 16
Slide 18: Global Diversification
Global Diversification EBITDA and employees GROSS MARGIN BY REGION 2020 vs. 2023 EMPLOYEES BY REGION 3% 7% 46% 55% 45% 54% 97% 93% Making Science has In 2020, 97% of the gross margin came from Spain; in 2023, this figure has been reduced to only 54%. made significant progress in As Making Science has e
Slide 19: Advancing day by day
5+ office openings MAKING SCIENCE ~200 new Advancing day by day customers +10 awards 70+ events ~800 new projects 8000+ attendees 18
Slide 20: New Clients 2023
New Clients 2023 making science KY SILTER wae = CeCOLeC =O ERB ea ADOLFODOMINGUEZ DIOR ® bechester vueling ames O ux: ~=aime nen CULMIA (ABS) WAkAKUU ie a MACAPSA FOOD & eventbrite MediaGMorkt U TUL expres eos See GD wwe ey HESCHUNG “ P speediedger Sot “psa Cs Handverksdata® | LINNEA £UND BONSOIRS.
Slide 21: Core Business: Expansion in the United States, Google Marketing Platform Reseller
03 Core Business: Expansion in the United States, Google Marketing Platform Reseller 20
Slide 22: The Opportunity of the U.S. Market
The Opportunity Of the U.S. market The world's largest digital advertising markets (2023)¹ The USA is the world's largest digital advertising market, accounting for 40% of global digital advertising spend and 53% excluding China. Despite its large size, it is expected to continue to grow at a faster
Slide 23: North American Presence of other consulting firms
North American Presence Of other consulting firms Percentage of net revenue from North America (2022)* Compared to other major global agencies and consulting firms, Making Science has very little presence in North America. This represents an opportunity to grow in this region. * Fuente: Statista, annu
Slide 24: Our History of Milestones in the USA
Our History of Milestones in the USA Since 2021 we have worked in the USA on the premium partner certification process Reseller Reseller Acquisition of GMP GMP Completed Hired new Application approval by Start of Reseller 360CA certifications certifications certifications Google team Process Google USA
Slide 25: Why is it Important to be a GMP Reseller?
Why is it Important to be a GMP Reseller? Google Marketing Platform is the leading Digital Marketing platform, used by major companies Type of Clients Using The Market Opportunity in Spain vs. the US Google Marketing Platform Spain USA Sales Partners: Analytics 6 18 Sales Partners: Advertising 5 15
Slide 26: Google Certified Resellers in the USA
Google Certified Resellers in the USA Company Certifications Global/Local ✓ ✓ 7 Global ✓ ✓ 7 Global ✓ ✓ 6 Global Making Science is ✓ ✓ 6 Local part of a select ✓ ✓ 6 Global group of resellers in ✓ ✓ 6 Global ✓ ✓ 5 Global the USA operating ✓ ✓ 5 Local globally ✓ ✓ 5 Local ✓ ✓ 5 Global ✓ ✓ 5 Global Sour
Slide 27: Global Resellers
Global Resellers Making Science is part of a select group of resellers in the USA operating globally 26
Slide 28: Recent Transactions
Recent Transactions In the sector ● Making Science's competitors have attracted a great deal of interest in recent years, particularly from private equity investors ● The most relevant precedent M&A transaction in the sector, the 2021 privatization of Artefact by Ardian, was done at a multiple of 27
Slide 29: Investments: E-Commerce & Products
04 Investments: E-Commerce & Products 28
Slide 30: Ventis Overview
Ventis Overview E-commerce business with significant potential for value creation E-commerce business acquired by Making Science in May 2021 Product Categories INVESTMENT CASE Fashion, Home and Gourmet Countries Long-term deferred Attractive price payment structure Headquartered in Italy Launched in
Slide 31: Recent Initiatives
Recent Initiatives Making Science is executing an operational turnaround to improve Ventis' growth and profitability MARKETING PRODUCT TECHNOLOGY ● SEO traffic: +5000 content descriptions ● Automatic system of inclusion of new ● External portal for gourmet suppliers generated via AI for the website,
Slide 32: Improving Profitability
Improving Profitability First year of positive EBITDA Ventis achieved its first year of positive EBITDA in 2023, due to Recurring EBITDA Evolution (2022 to 2023) the impact of: Increase in gross margin ● Improving the pricing mechanism for highly €233 demanded products of all categories ● Elimination
Slide 33: Q4 2023 and 2023 Results
05 Q4 2023 and 2023 Results 32
Slide 34: Market Environment
Market Environment Declining growth rates Year-over-year revenue growth rates (9M 2021 - 9M 2023)¹ 2 3 3 1. Source: Statista, annual and quarterly reports. 33 2. The 9M periods represent December-August due to the August 31 year-end. 3. 9M 2022 presented on a like-for-like comparative basis. Data ar
Slide 35: H2 2023 Highlights
H2 2023 Highlights 01 02 03 04 Organic Growth US Google Reseller Google Marketing Partner Awards 2023 New Gauss Product Gross Margin BrandMax ▲17% Growth 2022-2023 As of January 1, 2024, Amplify the impact of we are a Google your branding Marketing Platform campaigns by bidding Sales Partner in the
Slide 36: 2023 Results: Core Business
2023 Results Core Business Significant growth in our Results (2022 vs. 2023) business demonstrates the strengths of our core +13% operations (Core Business). €225.4 ● Revenues and gross margin grew by +16% 13% and 16% in 2023, to €225.4 €199.5 million and €60.3 million, respectively €60.3 ● Recurring
Slide 37: Non-Recurring Costs
Non-Recurring Costs Main groups of expenses € 2022 2023 Comments M&A 425,967 59,729 Lawyers and due diligence advisors, execution of agreements Capital increase 57,437 40,261 Banks, market, lawyers, consultants Corporate restructuring 0 408,179 Lawyers and advisors Ventis turnaround 613,954 444,668
Slide 38: CAPEX: Making Science and Artificial Intelligence
CAPEX Making Science and Artificial Intelligence Making Science has been an in millions of euros 2023 innovator and a leader in AI investment Other developments for Artificial Intelligence products €2.8 Making Science customer products and internal ● The Artificial Intelligence products Internal system
Slide 39: 2023 Results: Core Business Quarterly evolution
2023 Results Core Business: Quarterly evolution Quarterly EBITDA has recovered to its previous Quarterly EBITDA level since the Investments in Talent started in Q2 2023 ● Fourth quarter EBITDA shows a solid €2.9 result with EBITDA of €2.9 million in the Core Business €2.5 ● The company's cost contro
Slide 40: 2023 Results: Investment in Talent
2023 Results Core Business: Investment in Talent Investments in new personnel to accelerate organic growth Recurring EBITDA Evolution in the long term 2023 Q4 2023 Annualized €14.6 ● During 2023, Making Science has invested in accelerating its organic €2.9 -29% +22% €11.8 growth by reinforcing and h
Slide 41: 2023 Results: Core Business Margin evolution
2023 Results Core Business: Margin evolution Recurring EBITDA Margin (Core) Investments in talent have reduced profitability, but this Gross Margin €8.4 €14.8 €29.8 €52.1 €14.5 €13.6 €14.9 €17.4 has already begun to be Recurring EBITDA €1.7 €3.7 €7.1 €11.0 €2.5 €0.8 €1.5 €2.9 reversed ● In terms of p
Slide 42: 2023 Results: Investments: E-Commerce & Products
2023 Results Investments: E-Commerce & Products Significant opportunity for value creation in Ventis' Results (2022 vs. 2023) operational improvement ● Net revenues were flat in 2023 compared to 2022, but gross margin +1% increased by 42%, as the First year of positive EBITDA in its history profitabili
Slide 43: Adoption of IFRS
Adoption of IFRS Principal impacts The audited financial statements for the year ended December 31, 2023 will be published in accordance with International Financial IFRS 9 IFRS 16 IFRS 38 Reporting Standards (IFRS). (Expected losses) (Finance leases) (Goodwill) The Group will adopt an For leases ide
Slide 44: MSG Legal Entity Structure
MSG Legal Entity Structure Making Science Group, S.A. [ES] 100% Making Science Making Science Making Science Making Science AI & Making Science LTD Marketing & AdTech Investments Sweeft International SAAS [ES] [IE] [ES] [ES] LTD [UK] MS Digital 100% 100% Crepes & 100% 100% 100% MS Labs [ES] Ventis S
Slide 45: Guidance 2024 and Plan 2027
06 Guidance 2024 and Plan 2027 44
Slide 46: Objectives: Guidance 2024 and Plan 2027
Objectives Guidance 2024 and Plan 2027 Recurring EBITDA (millions of euros) Guidance 2024 €23 - €27 €14 - 15 M €14 - €15 Plan 2027 €23 - 27 M Implied compound annual growth rate (2024-2027)¹ 20% 1. Based on the midpoints of the ranges 45
Slide 47: Key Elements: Plan 2027
Key Elements Plan 2027 "Our goal is to be one of the leading advertising and technology consulting firms in the world, with a strong international presence." #01 #02 #03 #04 Maintain organic growth Rapid business growth in Opportunistic expansion of Development and in existing geographies, the USA, l
Slide 48: Q&A
Q&A 47 INVESTOR PRESENTATION
Slide 49: Thank you
Thank you INVESTOR PRESENTATION THE DIGITAL ACCELERATION COMPANY 48
Slide 50: Appendix
APPENDIX 49
Slide 51: 2023 Results by segment
2023 Results By segment 2022 2023 ‘22-’23 Change Core Invest- Core Invest- Core in € 000s Spain Int'l Total Spain Int'l Total Spain Int'l Business ments Business ments Business Net Revenue 116,386 83,126 199,511 10,621 210,132 130,705 94,665 225,370 10,776 236,145 12% 14% 13% Cost of Sales -87,172 -
Slide 52: Q4 2023 Results by segment
Q4 2023 Results By segment Q4 2022 Q4 2023 Q4 ‘22-’23 Change Core Invest- Core Invest- Core in € 000s Spain Int'l Total Spain Int'l Total Spain Int'l Business ments Business ments Business Net Revenue 33,252 24,661 57,913 2,392 60,305 34,444 26,653 61,098 3,287 64,384 4% 8% 5% Cost of Sales -25,176
Slide 53: Shareholder Information
Shareholder Information Significant ongoing investment from key stakeholders of the company Share Information Shareholder Composition 63% The (Madrid) Science of Digital, Green Scientific Tree, Bastiat Internet Ventures (José Antonio Martínez Aguilar, President and CEO) (Paris) 21% Other management an
Slide 54: Acquisitions, Partnerships and Joint Ventures
Acquisitions, Partnerships and Joint Ventures International Acquisitions Other Initiatives Area of expertise / complementarity Area of expertise / complementarity Oct. Presence in Italy Sept. • AdTech technology platform based in 2020 2021 Mallorca Feb. (51%) Presence in United Kingdom 2021 • Making
Slide 55: Analyst Coverage
Analyst Coverage Analyst reports are available to investors on the Making Science Investors page. Analyst Analyst Fernando Abril-Martorell Iván San Félix Carbajo 54
Slide 56: Interim financial statements as at June 30, 2023
APPENDIX Interim financial statements as at June 30, 2023 55
Slide 57: Financial Statements: Income statement summary
Financial Statements Income statement summary In millions of euros H1 2022 H1 2023 Revenue €97.6 €113.9 H1 2023 Results Cost of Sales (€72.0) (€84.1) Gross Margin €25.6 €29.8 Revenue growth of 17% and gross Capitalized Expenses¹ €1.7 €2.1 margin growth of 16% in H1 2023, Personnel Expenses (€16.3) (
Slide 58: Financial Statements: Balance sheet summary
Financial Statements Balance sheet summary In millions of euros 2022 H1 2023 Cash and Equivalents €31.3 €13.5 H1 2023 Results Accounts Receivable €45.3 €52.5 Other Current Assets €4.6 €5.2 €13.5 million in cash as of June 30, 2023, which provides flexibility to Total Current Assets €81.3 €71.3 achiev
Slide 59: Financial Statements: Cash flow statement summary
Financial Statements Cash flow statement summary In millions of euros H1 2022 H1 2023 H1 2023 Results Recurring EBITDA €4.3 €3.3 Decrease in cash balance of €17.8 Non-Recurring Operating Expenses (€0.7) (€1.4) million in H1 2023, ending the Change in Net Working Capital (€5.4) (€13.5) period with €13
Slide 60: Financial Statements: Net debt
Financial Statements Net debt Disciplined use of debt financing and earn-outs to accelerate growth In millions of euros¹ 2022 H1 2023 Net Debt has increased mainly due to Bank Debt €26.1 €28.0 ● The acquisition of the remaining 27% of our French subsidiary in January Bonds €11.8 €11.8 2023, and M&A-R
Slide 61: Credit Profile
Credit Profile Making Science is well-positioned to finance its growth strategy Debt Maturity Schedule¹ Staggered maturity schedule with a mix of short-term bank debt, (June 30, 2023) bonds and multi-year staged €4.7M payments related to M&A Credit Position transactions. Balanced M&A consideration mix
Slide 62: Appendix: Case Studies
APPENDIX Case Studies 61
Slide 63: Case Study: Gauss AI
CASE STUDY Gauss AI The Challenge The results In the insurance market, reducing claims and customer defaults ● By bidding on tROAS with Value-Based Bidding, we generated is key. MAPFRE faced the major challenge of translating business 17% more sales while reducing sales categorised as high risk by i
Slide 64: Case Study: Ad-Machina
CASE STUDY Ad-Machina The Challenge The results During the pandemic, there were many factors that nearly ruined ● The project started with a simple AB test in their brand the travel industry including border and hotel closings, as well as campaigns, in the UK and the USA. This test brought about a a
Slide 65: Case Study: Custom CDP
CASE STUDY Custom CDP The Challenge The results The COVID-19 pandemic had a profound impact on the hospitality The outcome of this collaboration was that RIU successfully industry. Changes in tourist behavior, including a decrease in the established its 1st Party Data within its dedicated Google Clo
Slide 66: Thank You!
THANK YOU! THE DIGITAL ACCELERATION COMPANY