Slide 1: Other Relevant Information: H1 2024 results webinar notice
Madrid, July 15, 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 March 17, on the Securities Markets and
Slide 2: Investor Presentation: H1 2024 Earnings Preview
JULY 15 RESULTS 2024 INVESTOR PRESENTATION H1 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 H1 2024 Earnings Preview 01 Overview of Making Science 02 Where are we today in the development of Making Science? 03 H1 2024 Results 04 Guidance 2024 and Plan 2027 Appendix 3
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: 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: 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? 10
Slide 12: Evolution: The company is in its Phase 3
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 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 14: Investing in Growth: Google Certifications
Investing in Growth Google Certifications EMEA USA LATAM SPAIN UNITED KINGDOM FRANCE ITALY USA MEXICO COLOMBIA 9 delivered 4 documented 1 documented 2 documented 8 documented 10 capable N/A 2 documented 6 capable 9 capable 8 capable 3 capable 4 Sales Partner 14 Sales Partner 6 Sales Partner 4 Sales P
Slide 15: International: Development Status and Competitive Strengths
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 16: Making Science is Becoming More Global
Making Science is Becoming More Global 15
Slide 17: 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 18: North American Presence
North American Presence Of other consulting firms Percentage of net revenue from North America (2023)* 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 19: 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 20: Breakdown of Business Lines
Breakdown of Business Lines BL1 BL2 BL3 BL4 The Tech Enabled Cloud, Cyber SAAS & AI Investments Global Digital Agency and AI Consulting With presence in 15 Where we have Where we have our Where we have countries and where DeVOps, Software AdTech technology. In Ventis and TMQ. 65% of our business Dev
Slide 21: H1 2024 Results
O03 H1 2024 Results making 20
Slide 22: Market Environment
Market Environment Declining growth rates Year-over-year revenue growth rates (2021 - Q1 2024)¹ 2 3 3 1. Source: Statista, annual and quarterly reports. 21 2. The annual periods represent December-November due to the August 31 year-end. 3. 2021 and 2022 presented on a like-for-like comparative basis
Slide 23: Q2 2024 Highlights: Spain
Q2 2024 Highlights: Spain 01 02 03 04 Selected New Clients Financial Results Awards and Events Our Technology Participation as Premier Sponsor in the Google Cloud Summit Madrid and celebration Recurring EBITDA of The AI Desert in Madrid with ▲121% more than 250 attendees from 75 companies (30 prospe
Slide 24: Q2 2024 Highlights: International
Q2 2024 Highlights: International 01 02 03 04 Selected New Clients Financial Results New Certifications Gross Margin Growth Across All Markets H1 Gross Margin Growth ▲ 53% Recurring EBITDA 15% ▲33% ▲ Growth ▲ 30% Digital TV H1 2023-2024 Q2 10% 1st Partner ▲ €1.9 M Q1 ▲ 14% H1 Recurring EBITDA (inc. U
Slide 25: Q2 2024 Highlights: USA
Q2 2024 Highlights: USA 01 02 03 04 Selected New Clients Google Marketing Platform Reseller Events and Commerical Activity Partnership with Google Great progress in collaboration with Google: ● Opportunity detected in the area of Cloud for As of January 1, 2024, we are a Marketing. Google Marketing
Slide 26: Q2 2024 Highlights: Corporate
Q2 2024 Highlights: Corporate 01 02 03 04 Acquisition of Additional 19% of Agua3 Agreement to Acquire Remaining 24% of UCP Signing of Debt Financing Capital Increase Acquired additional 19% of Announced agreement to Launched syndicated loan Successfully completed capital Agua3 Growth Engines, owner
Slide 27: H1 2024 Results: Consolidated
H1 2024 Results Consolidated Our international investments Results (H1 2023 vs. H1 2024) made in prior years and cost control policies are producing +10% strong operating leverage. €124.8 €113.9 ● The combination of an established market such as +20% Spain growing at 17% and the international segmen
Slide 28: H1 2024 Results: Core Business
H1 2024 Results Core Business Significant growth in our Results (H1 2023 vs. H1 2024) business demonstrates the strengths of our core +9% operations (Core Business). €119.2 €108.9 ● Revenues and gross margin grew by 9% and 20% in H1 2024, to €119.2 million and €33.7 million, respectively +20% ● Recur
Slide 29: H1 2024 Results: Core Business by Segment
H1 2024 Results Core Business by Segment Spain (H1 2023 vs. H1 2024) International (H1 2023 vs. H1 2024) +8% €69.4 +12% €64.6 €49.8 €44.4 +17% +24% €17.6 €15.1 €16.1 +121% €13.0 +33% €5.1 €2.3 €1.9 €1.4 Revenue Gross Margin Recurring EBITDA Revenue Gross Margin Recurring EBITDA 28
Slide 30: H1 2024 Gross Margin by Country
H1 2024 Gross Margin Core Business by Country In € thousands 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Var. 1H24/23, % Spain 8,033 7,039 7,940 9,149 8,527 9,056 16,7% International 6,464 6,564 6,923 8,028 8,054 8,078 23,8% - France 1,028 985 1,071 1,325 1,512 1,570 53,1% - Italy 914 956 914 897 1,103 1,042 14,7
Slide 31: H1 2024 EBITDA by Country
H1 2024 EBITDA Core Business by Country In € thousands 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Var. 1H24/23, % Spain 1,697 604 1,114 2,418 2,749 2,340 121,2% International 1,009 402 583 426 635 1,245 33,2% - France 329 352 361 314 505 521 50,7% - Italy 227 300 244 102 301 318 17,4% - Nordics 184 250 221 503 3
Slide 32: 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 33: Core Business: Margin evolution
H1 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 has already begun to be Recurring EBITDA €1.7 €3.7 €7.1 €11.0 €2.5 €0.8 €1.5 €2.9 €3.1 €2.8
Slide 34: Investments: E-Commerce & Products
H1 2024 Results Investments: E-Commerce & Products Significant opportunity for value creation in Ventis' Results (H1 2023 vs. H1 2024) operational improvement +11% ● Net revenues increased by 11% in H1 2024 over H1 2023, and gross margin increased by 17%, as the profitability €5.5 improvement initiati
Slide 35: Guidance 2024 and Plan 2027
04 Guidance 2024 and Plan 2027 34
Slide 36: 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 35
Slide 37: Detailed Guidance 2024
Detailed Guidance 2024 Key Figures 2023 2024 Close Low High The Making Science Board of Directors met Revenue (€ millions) 236 270 290 on March 31, 2024. Annual Growth 15% 23% After analyzing the year's forecasts, the Board unanimously decided to maintain the Gross Margin (€ millions) 64 74 77 recur
Slide 38: 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 intern
Slide 39: Q&A
Q&A 38 INVESTOR PRESENTATION
Slide 40: Thank you
Thank you INVESTOR PRESENTATION THE DIGITAL ACCELERATION COMPANY 39
Slide 41: Appendix
APPENDIX 40
Slide 42: H1 2024 Results by segment
H1 2024 Results By segment H1 2023 H1 2024 Var. % Figures in € '000 Spain Int'l Core Invest, Total Spain Int'l Core Invest, Total Spain Int'l Core Revenues 64,550 44,352 108,902 5,007 113,909 69,398 49,830 119,227 5,538 124,766 7,5 12,4 9,5 Cost of Sales -49,478 -31,324 -80,802 -3,282 -84,084 -51,81
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: 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 45: 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 44
Slide 46: Thank you!
THANK YOU! THE DIGITAL ACCELERATION COMPANY