Two Point Zero Group Pjsc · ADX:2POINTZERO
Two Point Zero Group Pjsc — Multiply Group — Investor Presentation (November 2024)
47 slides from Two Point Zero Group Pjsc's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation INVESTOR PRESENTATION 1
Slide 2: Multiply at a Glance
Multiply at a Glance
Slide 3: The beginning of a remarkable journey from a boutique marketing consultancy agency
The beginning of a remarkable journey from a boutique marketing consultancy agency... Multiply Acquisition of Founded by our current CEO, the company started out Research additional 15% as Multiply Marketing Consultancy (MMC), growing Company in Viola organically into one of the leading communicatio
Slide 4: ..to one of the largest diversified holding company in the region
..to one of the largest diversified holding company in the region Acquisition of 100% AED in PAL 42.2bn IHC Cooling ADX Listing acquired Holding (AED 1.11/ Acquisition 90% in share) of 80% Omorfia in IEH acquired Multiply (50% in AED $ 100mn 30.6bn invested in 100% Kalyon in The Enerji) Breakwater E
Slide 5: Our Growth Story
Our Growth Story Revenue Adjusted EBITDA* AED ~3.5x 1.6bn AED ~7.6x in 2 years 2 1.3bn in 2 years2 2021 2023 2021 2023 Total Assets Market Cap3 Liquidity4 > AED ~ AED > AED 40bn 25bn 50mn *Adjusted EBITDA = Group Net profit + net finance cost + Depreciation & Amortization - Fair Value gains / losses
Slide 6: Today's diversified porfolio
Today’s diversified porfolio 51% INVESTOR PRESENTATION 6
Slide 7: Established platform for further scaling
Established platform for further scaling Total renewable installed capacity: 1.5GW (all solar) | +490MW by end of 2025 (wind and solar) District cooling plants: 6 | Connected Capacity: 165k RT Number of vehicles (EDC): ~400 Number of students (EDC): >120,000 in 2023 Total number of assets: 1,500+ (e
Slide 8: Investment Strategy
Investment Strategy 1 6
Slide 9: Our Investment Strategy
Our Investment Strategy Deploying capital across 2 distinct arms adhering to a disciplined investment approach Vertical Building Minority Investments Consolidate steady and predictable cash Target high-potential, financially flow businesses in select verticals, that MUL TIPLY MULTIPLY+ outstanding i
Slide 10: Our Vertical Building Investment Strategy
Our Vertical Building Investment Strategy Up to AED 5bn to deploy into our Vertical Building Investment strategy Objective Buy-outs of leading strong cash generating businesses in proven solid industries Generate value through EBITDA consolidation, dividend generation, value appreciation and synergi
Slide 11: A disciplined approach to sector selection
A disciplined approach to sector selection Sectors where Multiply can become the Strategic sectors with healthy market size growth regional leading investor Sectors with high capital efficiency Sectors where Emerging Markets (profitability, CAPEX requirements, cash are making a difference generation
Slide 12: Our Multiply+ Investment Strategy
Our Multiply+ Investment Strategy Objective Sector-agnostic minority investments with outstanding financial returns Asset Classes Private Companies Public Companies Fundamentally strong listed companies available at Private businesses with a strong dividend profile and a clear Rationale valuation up
Slide 13: Key Milestones per investment arm
Key Milestones per investment arm 2022-2023 9M 2024 Vertical building Vertical building ▪ A portfolio of majority-owned subsidiaries in a diversified and balanced selection ▪ Continued focus on generating value through EBITDA consolidation, value of sectors: Utilities, Mobility, Media & Comms and We
Slide 14: Financial Performance
Financial Performance
Slide 15: Where are we today? Key Highlights for YTD 2024
Where are we today? Key Highlights for YTD 2024 Accelerated efficiency Consolidated 3 acquisitions: Welcomed IHC’s CEO & Strategic extraction across our Backlite (Media), TGCH (Beauty) Managing Director, Syed Updates operating companies and Excellence Driving (Mobility) Basar Shueb, as new Chairman
Slide 16: Beyond the headlines: Adjusted vs Reported Earnings fact check
Beyond the headlines: Adjusted vs Reported Earnings fact check AED MN Adjusted Group Net Profit1 IFRS Group Net Profit we are required to report Full year 2022 468 18,563 Full year 2023 1,114 552 9M’24 920 -2,508 Adjusted earnings provide a clearer view by focusing on the operational performance of
Slide 17: Delivering on our Priorities
Delivering on our Priorities 1 3
Slide 18: Delivering on our Priorities
Delivering on our Priorities KEY PRIORITIES List the Media Efficiencies Inorganic Growth Vertical Create up to AED 45mn Deploy up to AED 5bn in new Prepare the media vertical for a EBITDA uplift across our acquisitions potential listing to unlock value existing businesses PROGRESS ► Deployed ~AED 1b
Slide 19: Inorganic Growth | YTD'24
Inorganic Growth | YTD’24 Description Rationale Consideration Metrics ► A global reference in the Digital ► Penetrating the rapidly growing digital OOH ► Revenue AED 250mn OOH advertising space media sector ► Healthy EBITDA margins ► Leading partner with the Roads ► Integrating Backlite’s innovative
Slide 20: Preparing the Media & Communications Vertical for a public listing
Preparing the Media & Communications Vertical for a public listing Consolidation Growth history Multiply Acquisition Acquisition of 100% in Investments Acquisition of Acquisition of Marketing of 35% in of 15% in Viola in Firefly 60% in 100% in Consolidation of leading Consultancy Viola Viola Backlit
Slide 21: Key Initiatives: Year of Efficiency
Year of Efficiency > AED 25mn realized efficiency gains to-date Revenue Cost Digital Transformation Key Initiatives ► Leveraging market leadership: Capturing more wallet share ► Strategic sourcing: Conducting a comprehensive procurement ► Enhancing operational efficiency: Automating back-end in the
Slide 22: 2024 Growth Drivers
2024 Growth Drivers
Slide 23: 2024 Growth Drivers
2024 Growth Drivers 2024 2023 Key growth drivers Strong vertical fundamentals Efficiencies and Synergies Energy & Utilities Mobility Media & Comms Beauty & Wellness Up to AED 45mn* • Global district cooling market • Global mobility solutions is • Global ad market set to grow • Global beauty market a
Slide 24: Closing Remarks
Closing Remarks INVESTOR PRESENTATION 25
Slide 25: Value Creation Model at the Holding Level
Value Creation Model at the Holding Level Access to high-profile deals Supportive ecosystem brings 1 in multiple synergies Financial flexibility on a wide network of lending banks Attracting high-caliber talent Attractive sectors disrupted by favourable megatrends Clear framework to identify 2 targe
Slide 26: Q&A
Q &A
Slide 27: Appendix
Appendix
Slide 28: Detailed Financial Performance – 9M'24
Detailed Financial Performance – 9M’24
Slide 29: Group P&L performance
Group P&L performance 1,356 1,351 Revenue growth on positive Adjusted EBITDA 2 growth driven by contribution across all 4 verticals1 strong operational performance of core 1,194 (+10% organic growth) further verticals with blended GP margin at 44%, boosted by the consolidation of 897 and higher divi
Slide 30: Healthy cash generation
Healthy cash generation Strong net OCF on cash-generating ..resulting in healthy OCF operating businesses and prudent margin1 working capital management.. 958 71% 539 60% 9M'23 9M'24 9M'23 9M'24 Increased contribution from ..further supported by the value 29.3 bn Vertical Assets as we focus on 47% 5
Slide 31: Robust balance sheet supporting our investment growth strategy
Robust balance sheet supporting our investment growth strategy Reasonable leverage with Net Debt / Equity 0.28x Gross debt of AED 9.68bn Net debt of AED 7.8bn Healthy Cash balance AED 1.9 bn AED 20.5 bn Deployed capital to-date ~ 5.0% Relatively low average funding cost amid As of 30 Sept 2024 a hig
Slide 32: Diversified portfolio across core verticals
Diversified portfolio across core verticals Vertical building strategy bearing fruits ..with healthy blended gross profit with positive YoY growth across all 4 from operating businesses reflecting verticals.. the change in revenue mix 9M’24 Revenue Split 9M’24 Gross Profit Split 19% 22% 27% 30% AED
Slide 33: Snapshot per Vertical
Snapshot per Vertical
Slide 34: Energy & Utilities
Energy & Utilities Multiply Group Industry District cooling: • Renewable energy • Global district cooling market is set to grow at 8% CAGR Plays • District cooling (+ heating) Facts • UAE has ~4M of RT, and is expected to grow at a CAGR of 10% • Energy services • Continued growth of UAE population a
Slide 35: Mobility
Mobility Multiply Group Industry • Mobility education • Maintenance and • The global mobility solutions market size is estimated at servicing Plays • Car sales and leasing Facts $1.2tn in 2022 and is expected to grow at a 5% CAGR • Mobility-as-a-service and • Insurance and financing • Continued grow
Slide 36: Media & Communication
Media & Communication Multiply Group Industry • Global ad market in 2023 is ~$650bn and is expected to grow at a • D/OOH Media Portfolio CAGR of 5% Plays • Digital advertising Facts • Integrated service offering • The Middle East Ad market is ~$7bn in 2024 and is expected to be the fastest expanding
Slide 37: Wellness & Beauty
Wellness & Beauty Multiply Group Industry • Beauty Services • Mental health • Global beauty market is ~$750b and expected to grow by 4% • Beauty Products • Physical Fitness Facts Plays • The UAE beauty market is ~$3b and expected to grow by 6% • Corporate wellness services • The UAE is one of the hi
Slide 38: Multiply+ Snapshot
Multiply+ Snapshot Selected strategic investments under M+ Company Industry Footprint Description Investment Rationale One of largest listed integrated utility companies in EMEA with Global presence and AED 10 bn Attractive valuation & Taqa Energy & Utilities (7.3% holding) in ambitious growth plans
Slide 39: Capability & Know-how
Capability & Know-how 35
Slide 40: Experienced Board of Directors
Experienced Board of Directors SAYED BASAR SHUEB H.E. HAMAD H.E. MANSOOR AL RICK GERSON SAMIA BOUAZZA KHALFAN ALI MANSOORI MATAR AL-SHAMSI Chairman of the Board Board Member Board Member Board Member CEO & Board Member Notable CEO & Managing Director at Vice Chairman Ghitha Member of the Abu Dhabi C
Slide 41: An experienced management team…
An experienced management team… Samia Bouazza Jose Maria Dot Naveed Khan Group CEO, Managing Director Chief Investment Group Finance & Board Member Officer Director Years of >20 years 20 years 15 years experience Notable experience Mehdi Bizri Omar Fayed Lama Al Bachir Mezier Briefkani Kaiser Geelan
Slide 42: …supported by vertical leads with deep insights
…supported by vertical leads with deep insights Jawad Hassan Media and Communitation Head of Media vertical Years of 25 years experience Areas of | Crafting strategic marketing plans expertise | Evaluating acquisitions for scaling growth Mobility | Building media ecosystems Ammar Sharaf Smitta Ozha
Slide 43: …supported by vertical leads with deep insights (cont'd)
…supported by vertical leads with deep insights (cont’d) Media and Khalid Bin Aamer Communitation Alshemeili Dr. Murtaza Ata Muhammad Zafar CEO of Emirates CEO of Kalyon Enerji CEO of PAL Cooling Driving Company Holding Years of 23 years >30 years 25 years experience Mobility Areas of | Setting long
Slide 44: ESG Highlights
ESG Highlights 40
Slide 45: Sustainability framework
Sustainability framework Pillar 1: Robust Foundations Pillar 2: Growing our Human Capital Objectives Objectives ➢ Enhance governance structure for a sustainable performance while ➢ Position Multiply as an employer of choice, emphasising integrating ESG into organisational risk management workplace d
Slide 46: Disclaimer
Multiply is not under any obligation to update, complete, amend, revise or keep current the information contained herein, and any opinions expressed herein are subject to change materially without notice. Accordingly, no representation or warranty, express or implied, is or will be made by Multiply,
Slide 47: IR Contact Details
IR Contact Details Contact Multiply Investor Relations for any questions Sahar Srour, CFA +971 54 513 9204 sahar@multiply.ae
Multiply Group — Investor Presentation (November 2024) on 6ix