Slide 1: Other Relevant Information: Q3 2024 results webinar
Madrid, October 22, 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, Article 227 of Law 6/2023 of 17 March on Securities Markets and Investm
Slide 2: Investor Presentation Q3 2024 Earnings Preview
OCTOBER 22 RESULTS 2024 INVESTOR PRESENTATION Q3 2024 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 Q3 2024 Earnings Preview 01 Overview of Making Science 02 Q3 and 9M 2024 Results 03 Financing the Next Phase of Growth 04 Guidance 2024 and Plan 2027 Appendix 3
Slide 5: Overview of Making Science
01 Overview of Making Science 4
Slide 6: Who we are
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: 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 9: Some of Our Clients
Some of Our Clients We create value through integrated solutions to deliver a 360-degree, results-oriented experience 8
Slide 10: 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 11: Making Science is Becoming More Global
Making Science is Becoming More Global 10
Slide 12: Evolution: Phases of Making Science
Evolution Phase 3 of Making Science Revenue (millions of euros) The company is in 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 11
Slide 13: Phase 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 14: Q3 and 9M 2024 Results
02 Q3 and 9M 2024 Results making 13
Slide 15: Market Environment
Market Environment Declining growth rates Year-over-year revenue growth rates (2022 - H1 2024)¹ 2 3 3 1. Source: Statista, annual and quarterly reports. 14 2. The annual periods represent December-November due to the August 31 year-end. 3. 2022 presented on a like-for-like comparative basis.
Slide 16: Q3 2024 Highlights
Q3 2024 Highlights 01 02 03 04 Selected New Clients Major Progress in USA Financial Results Financing Agreement with SOPEF Expected to reach 20 Announced agreement clients in the USA by with Spain Oman Private year-end 2024 Recurring EBITDA Equity Fund (SOPEF) ▲94% Investment of up to €40 million by
Slide 17: 9M 2024 Results: Consolidated
9M 2024 Results Consolidated Our international investments Results (9M 2023 vs. 9M 2024) made in prior years and cost control policies are producing +13% strong operating leverage. €193.9 €171.8 ● The combination of an established market such as Spain growing at 11% and the international segment gro
Slide 18: 9M 2024 Results: Core Business
9M 2024 Results Core Business Significant growth in our Results (9M 2023 vs. 9M 2024) business demonstrates the strengths of our core +13% operations (Core Business). €185.5 €164.3 +14% ● Revenues and gross margin grew by 13% and 14% in 9M 2024, to €185.5 million and €49.1 million, respectively €49.1
Slide 19: 9M 2024 Results: Core Business by Segment
9M 2024 Results Core Business by Segment Spain (9M 2023 vs. 9M 2024) International (9M 2023 vs. 9M 2024) +8% €103.8 +20% €96.3 €81.7 €68.0 +11% +18% €25.6 €23.0 +108% €23.5 +52% €20.0 €7.1 €3.4 €3.0 €2.0 Revenue Gross Margin Recurring EBITDA Revenue Gross Margin Recurring EBITDA 18
Slide 20: Core Business: Margin evolution
9M 2024 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 €16.6 €17.1 €15.3 has already begun to be Recurring EBITDA €1.7 €3.7 €7.1 €11.0 €2.5 €0.8 €1.5 €2.9 €3.
Slide 21: Stability and Predictability of Revenues
Stability and Predictability of Revenues Historical Gross Margin Fee Structure Quarterly Gross Margin (Core) (millions of euros) The structure of service fees may vary considerably depending on each case, client and company, but in general the following can be distinguished: ● Recurring Fees: Fees a
Slide 22: Growth Drivers
Growth Drivers Ad-Machina and USA Now present in 48 clients and growing rapidly in Making Science brand momentum in the US continues both revenue and EBITDA Continued signing of new clients and sale of services and projects Acquired an extra 19% of Ad-Machina in June, bringing our to existing client
Slide 23: Investments: E-Commerce & Products
9M 2024 Results Investments: E-Commerce & Products Significant opportunity for value creation in Ventis' Results (9M 2023 vs. 9M 2024) operational improvement +13% ● Net revenues increased by 13% in 9M 2024 over 9M 2023, and gross €8.5 margin increased by 19%, as the profitability improvement initiati
Slide 24: Non-Recurring Costs
Non-Recurring Costs Main groups of expenses € thousands 9M 2024 Comments Capital increase, bond refinancing and new syndicated loan, and M&A activity, Corporate operations 887 principally acquisition of UCP (24%) People & culture 109 Severance and operational adjustments Various other non-recurring 4
Slide 25: Financial Statements: Cash Flow
Financial Statements H1 2024 Cash Flow Statement In million euros 2022 2023 H1 2023 H1 2024 Results H1 2024 EBITDA (Recurring) 9.8 8.4 4.1 7.3 1 Non-Recurring Expenses (1.7) (2.6) (1.4) (0.4) 1 Strong EBITDA growth to €7.3 million in H1 2024, causing pre-tax profit to Non-Cash Items 0.5 1.1 0.4 0.4 i
Slide 26: Net financial debt
Financial statements Net financial debt Disciplined use of debt financing and variable earn-outs to Debt Maturity Schedule at June 30 (IFRS Accounting) accelerate growth Maturity schedule with a mix of short-term bank debt, syndicated loan and multi-year staged payments related to M&A transactions Cre
Slide 27: Financing the Next Phase of Growth
03 Financing the Next Phase of Growth 26
Slide 28: Our Business Lines
Our Business Lines 4 Business Lines Making Science has developed different lines of business in recent years. ● All business lines are profitable and growing at double digits ● A new structure has been defined with global COOs by business line ● A business plan for growth is being defined for each of th
Slide 29: MSG Org Chart
MSG Org Chart Making Science Group, S.A. [ES] BL1 BL2 BL3 BL4 89.47% 100% 100% 100% 100% Making Science Making Science Making Science Making Science Making Science Marketing & AdTech Sweeft International Investments AI & SAAS [ES] LTD [IE] [ES] LTD [UK] [ES] MS Digital 100% 100% Crepes & Marketing [
Slide 30: Spain Oman Private Equity Fund (SOPEF)
Spain Oman Private Equity Fund (SOPEF) SOPEF is an investment vehicle that seeks to invest in Spanish companies that are leaders in their respective sectors, with solid and committed management teams, proprietary technology and clear plans for growth and internationalization. Who are SOPEF? Main Inv
Slide 31: Structure of the Transactions
Structure of the Transactions After the Second Investment Before First Investment First Investment (2024) (2025) and Third Investment (2026) SOPEF SOPEF 100% 89,47 % 10,53 % ~75-82 % ~18-25 % (según (según valoración e valoración) inversión) BL1 BL1 BL1 Making Science Making Science Making Science M
Slide 32: Schedule of Investments
Schedule of Investments Amounts and conditions SOPEF Conditions First Investment Signing 5 M€ 2,5 M€ SOPEF acquires an initial stake of 10.53% First 10x EBITDA of BL1 Second Investment anniversary 10 M€ 0-12,5 M€ of 2024 Second 10x BL1 EBITDA Third Investment anniversary 5 M€ 0-5 M€ of 2025 Third to
Slide 33: Why Partner with SOPEF?
Why Partner with SOPEF? ✓ M&A opportunities in the Making Science Marketing & AdTech category ✓ Higher interest rates and lower valuations than in the 2020-2022 period Competitors in this category are financed by Private Equity funds (Brainlabs, Incubeta, Jellyfish...) and ✓ Making Science must compet
Slide 34: Guidance 2024 and Plan 2027
04 Guidance 2024 and Plan 2027 33
Slide 35: 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 34
Slide 36: Detailed Guidance 2024
Detailed Guidance 2024 Key Figures 2024 Low High The Making Science Board of Directors met Revenue (€ millions) 270 290 on March 31, 2024. Annual Growth 15% 23% After analyzing the year's forecasts, the Board unanimously decided to maintain the Gross Margin (€ millions) 74 77 recurring EBITDA foreca
Slide 37: Thank you
Thank you INVESTOR PRESENTATION THE DIGITAL ACCELERATION COMPANY 36
Slide 38: Appendix
APPENDIX 37
Slide 39: 9M 2024 Results by segment
9M 2024 Results By segment 9M 2023 9M 2024 Var, Figures in € '000 Spain Int'l Core Invest, Total Spain Int'l Core Invest, Total Spain Int'l Core Revenues 96,257 68,012 164,269 7,489 171,758 103,760 81,715 185,475 8,451 193,926 7.8 20.1 12.9 Cost of Sales -73,245 -48,061 -121,306 -4,910 -126,216 -78,
Slide 40: Q3 2024 Results by segment
Q3 2024 Results By segment Q3 2023 Q3 2024 Var, Figures in € '000 Spain Int'l Core Invest, Total Spain Int'l Core Invest, Total Spain Int'l Core Revenues 31,707 23,660 55,367 2,482 57,849 34,362 31,886 66,248 2,912 69,160 8.4 34.8 19.7 Cost of Sales -23,767 -16,737 -40,504 -1,628 -42,132 -26,335 -24
Slide 41: Quarterly Gross Margin: Core Business by Country
Quarterly Gross Margin Core Business by Country Var. % in € '000s 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 9M24/23 Spain 8,033 7,039 7,940 9,149 8,527 9,056 8,027 11.3% International 6,464 6,564 6,923 8,028 8,054 8,078 7,320 17.5% - France 1,028 985 1,071 1,325 1,512 1,570 1,368 44.3% - Italy 914 956 914
Slide 42: Quarterly EBITDA: Core Business by Country
Quarterly EBITDA Core Business by Country Var. % in € '000s 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 9M24/23 Spain 1,697 604 1,114 2,418 2,749 2,340 2,006 107.7% International 1,009 402 583 426 635 1,245 1,158 52.3% - France 329 352 361 314 505 521 390 35.9% - Italy 227 300 244 102 301 318 277 16.1% - Nor
Slide 43: Shareholder Information
Shareholder Information Significant ongoing investment from key stakeholders of the company Share Information Shareholder Composition 59% The (Madrid) Science of Digital, Green Scientific Tree, Bastiat Internet Ventures (José Antonio Martínez Aguilar, President and CEO) (Paris) 21% Other management an
Slide 44: 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 43
Slide 45: Thank You!
THANK YOU! THE DIGITAL ACCELERATION COMPANY