Two Point Zero Group Pjsc · ADX:2POINTZERO

Two Point Zero Group Pjsc — Multiply Group — Q1 2025 Earnings Presentation

47 slides from Two Point Zero Group Pjsc's earnings presentation, April 2025

  1. Slide 1: Q1 2025 Results Presentation

    Q1 2025 Results Presentation April 2025

  2. Slide 2: Agenda

    Investment Strategy update 1 Delivering on our Approach 2 Agenda 3 Financial performance Vertical performance 4 Appendix 5

  3. Slide 3: Disclaimer

    Disclaimer Multiply Group (“Multiply”) prepared this presentation on a proprietary basis as general background information about the activities of Multiply. The information contained herein is given in summary form and for discussion purposes only. Some of the information that is relied upon by Mult

  4. Slide 4: Investment Strategy Update

    Investment Strategy Update

  5. Slide 5: Our Investment Strategy | Recap

    Our Investment Strategy | Recap 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 MULTIPLY+ outstanding inv

  6. Slide 6: Growing platform for further scaling

    Growing platform for further scaling Sector-agnostic minority investments Vertical Aspiration Key Figures Exposure with outstanding potential Total number of assets: MEDIA & Creating a leading, integrated and 1,500+ (excluding transit) COMMUNICAT global media provider focused on Digital assets: 400+

  7. Slide 7: Delivering on our Approach

    Delivering on our Approach 1 3

  8. Slide 8: A disciplined approach to sector selection

    A disciplined approach to sector selection Consumer sectors where Multiply can Strategic sectors with healthy market size growth become the regional leading investor Sectors with high capital efficiency Sectors where Emerging Markets (profitability, CAPEX requirements, cash are making a difference g

  9. Slide 9: Case Study – Tendam as the Showcase of our Sector Selection and Investment Strategy

    Case Study – Tendam as the Showcase of our Sector Selection and Investment Strategy Criteria Description How fits Global apparel retail valued at >$1.7tn; expected to grow at 5%+ 1 GROWTH Strategic sectors with healthy market size growth CAGR Sectors with high capital efficiency (profitability, Tend

  10. Slide 10: Where are we today? Key Highlights for Q1 2025

    Where are we today? Key Highlights for Q1 2025 Entry into Strategic Integrating new vertical Partnerships Businesses Vertical financial highlights (3M 2025) Group financial highlights (3M 2025) Reported EBITDA from consolidated entities2 +55% YoY AED 585 mn AED 571.5 mn +50% YoY +19% YoY Adjusted Re

  11. Slide 11: Q1’25 Financial Performance

    Q1’25 Financial Performance

  12. Slide 12: Group P&L performance

    Group P&L performance 572 482 Revenue growth on positive 585 Adjusted EBITDA1 of AED 572 million contribution across all 4 verticals was driven by (i) strong operational through a combination of organic 391 performance of core verticals with blended and inorganic growth. GP margin at 49% (ii) divide

  13. Slide 13: Healthy cash generation

    Healthy cash generation Strong net OCF on cash-generating ..resulting in healthy OCF operating businesses and prudent margin1 working capital management.. 483 123 % 256 44 % Q1' 24 Q1' 25 Q1' 24 Q1' 25 Increased contribution from ..further supported by the value 31.8 bn Vertical Assets as we focus o

  14. Slide 14: Robust balance sheet supporting our investment growth strategy

    Robust balance sheet supporting our investment growth strategy Reasonable leverage with Net Debt / Equity 0.25x Gross debt of AED 9.31bn Net debt of AED 7.6bn Healthy Cash balance AED 1.7 bn AED 21 bn Deployed capital to-date ~ 5.2% Relatively low average funding cost amid As of 31 March 2025 a high

  15. Slide 15: Q1’25 Vertical Performance

    Q1’25 Vertical Performance

  16. Slide 16: Diversified portfolio across core verticals

    Diversified portfolio across core verticals Vertical building strategy bearing fruits ..with healthy blended EBITDA margin (45%) with positive YoY growth across all 4 from operating businesses reflecting the high verticals.. profitability of our businesses Q1’25 Revenue Split Q1’25 EBITDA Split 18%

  17. Slide 17: Media and Communications

    Media and Communications1 33% of Group Revenue Revenue Gross Profit Commentary 193 141 90 62 Revenue Profitability Q1’25 revenues included the consolidation of Growing revenues led to improvement in margins Q1' 24 Q1' 25 Q1' 24 Q1' 25 Backlite for the full quarter driven by Backlite & Viola revenue

  18. Slide 18: Mobility

    Mobility1 28% of Group Revenue Revenue Gross Profit Commentary 167 107 73 92 Revenue Profitability EBITDA of AED 88mn reflects: +81% YoY largely driven by the consolidation The consolidation of Excellence Driving Center, a Q1' 24 Q1' 25 Q1' 24 Q1' 25 of Excellence Driving Center in July’24 prominent

  19. Slide 19: Wellness & Beauty

    Wellness & Beauty 27% of Group Revenue Revenue Gross Profit Commentary 157 52 96 31 Revenues Profitability Q1' 24 Q1' 25 Q1' 24 Q1' 25 +64% YoY largely driven by the consolidation Enhanced profitability across the board was largely driven of The Juice Spa & Salon in Q4’24 and TGCH by efficiency impr

  20. Slide 20: Energy and Utilities

    Energy and Utilities1 12% of Group Revenue Revenue Gross Profit Commentary 68 62 36 35 Revenues Profitability EBITDA of AED 43mn excludes: Q1' 24 Q1' 25 Q1' 24 Q1' 25 +10% YoY driven by PCH’s new AED 25mn share of loss from Kalyon JV (vs. AED 14m last connections and tariff changes year) on unfavour

  21. Slide 21: Closing Remarks

    Closing Remarks INVESTOR PRESENTATION 25

  22. Slide 22: 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

  23. Slide 23: Q &A

    Q &A

  24. Slide 24: Appendix

    Appendix

  25. Slide 25: A transformative journey

    A transformative journey

  26. Slide 26: 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

  27. Slide 27: ..to one of the largest diversified holding company in the region

    ..to one of the largest diversified holding company in the region AED 43.0bn 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) B

  28. Slide 28: Our Growth Story

    Our Growth Story Revenue Adjusted EBITDA* AED ~8.8x 1.9bn AED in 3 years 2 ~5.4x in 3 years2 2.0bn 2,022 AED AED 0.4bn 0.2bn 2021 2024 2021 2024 Total Assets Market Cap3 Liquidity4 AED AED AED 43bn 23bn 58mn *Adjusted EBITDA = Group Net profit + net finance cost + Depreciation & Amortization - Fair

  29. Slide 29: Today’s diversified portfolio

    Today’s diversified porfolio MULTIPLY MULTIPLY MULTIPLY MULTIPLY MULTIPLY Sector-agnostic minority investments with ENERGY & UTILITIES MOBILITY MEDIA & COMMS WELLNESS & BEAUTY RETAIL & APPAREL outstanding potential 100% 48% 100% 51% 67.91% 7.3% 2% Subject to regulatory approval 51% 100% 60% 80% 1.2%

  30. Slide 30: Investment Strategy

    Investment Strategy 1 6

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: Media Vertical Potential Listing

    Media Vertical Potential Listing

  34. Slide 34: 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 Media 2

  35. Slide 35: Snapshot per Vertical

    Snapshot per Vertical

  36. Slide 36: Media & Communication

    Media & Communication Multiply Group Industry • Global ad market forecast to grow by 5.9% in 2024 (vs. 3.3% in • D/OOH Media Portfolio 2023) to reach ~$770bn Plays • Digital advertising Facts • Integrated service offering • The Middle East Ad market is ~$7bn in 2024 and is expected to be the fastest

  37. Slide 37: 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

  38. Slide 38: Wellness & Beauty

    Wellness & Beauty Multiply Group Industry • Beauty Services • Sports • 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% • The UAE is one of the highest beauty spenders in the world wi

  39. Slide 39: 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

  40. Slide 40: 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

  41. Slide 41: Capability and know-how

    Capability and know-how 35

  42. Slide 42: 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

  43. Slide 43: An experienced management team…

    An experienced management team… Samia Bouazza Michael Katounas Mezier Briefkani Naveed Khan Group CEO, Managing Director Chief Investment Chief Portfolio Group Finance & Board Member Officer Officer Director Years of 14 years 20+ years 20+ years 15 years experience Notable experience Lama Al Bachir

  44. Slide 44: …supported by vertical leads with deep insights

    …supported by vertical leads with deep insights Khalid Bin Aamer Alshemeili Dr. Murtaza Ata Jawad Hassan Media and CEO of Emirates CEO of Kalyon Enerji Communita Head of Media vertical Driving Company tion Years of 25 years 23 years >30 years experience Areas of | Crafting strategic marketing plans

  45. Slide 45: ESG Highlights

    ESG Highlights 40

  46. Slide 46: 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

  47. Slide 47: IR Contact Details

    IR Contact Details Contact Multiply Investor Relations for any questions Mehdi El Bizri +971 50 328 1278 mehdi@multiply.ae

Multiply Group — Q1 2025 Earnings Presentation on 6ix