Slide 1: Other Relevant Information filing notice
Madrid, May 24, 2022 MAKING SCIENCE GROUP, SA (the "Company", the "Company", the "Group", or "Making Science") by virtue of the provisions of article 17 of Regulation (EU) No. 596 /2014 on market abuse and in article 227 of the consolidated text of the Securities Market Law, approved by Royal Legisl
Slide 2: Foro Medcap 2022 Investor Presentation
making science | Investors Foro Medcap 2022 Investor Presentation José Antonio Martínez Aguilar CEO Making Science May 26, 2022 Making Science Group, SA - Confidential
Slide 3: Disclaimer
making science | Investors Disclaimer This document and the conference-call webcast (including the Q&A session) may contain forward-looking statements and information (hereinafter, the “Information”) relating to MAKING SCIENCE GROUP, S.A (hereinafter “Making Science” or the “Company”). This informat
Slide 4: Index
making science | Investors Investor Presentation 2021 Year in Review and Q1 Update 01 About Making Science 02 2021 Highlights 03 Financial Update 04 Q1 Update Appendix Index 3 Making Science Group, SA - Confidential
Slide 5: 01. About Making Science
making science | Investors 01. About Making Science Making Science Group, SA - Confidential
Slide 6: About Making Science
making science | Investors Making Science Group is a Marketing and Technology Consulting Firm Helping Companies Accelerate Their Digital Capabilities ... WITH ITS OWN TECHNOLOGIES Spain (Madrid, Barcelona, Mallorca, Valencia) France (Paris) Ad-machina platform to invest more efficiently Portugal (Li
Slide 7: We Operate in Four High Growth Markets
making science | Investors We Operate in Four High Growth Markets Demand for Digital Services is Accelerating ● Making Science is at the center of four markets growing 20%+ per year, benefiting from the digitalisation of the economy and accelerated by the COVID-19 pandemic DIGITAL ● Integrated one-st
Slide 8: Attractive Market Opportunity
making science | Investors Attractive Market Opportunity Operating in Massive, High Growth Markets with Significant Room to Grow Our Business Operating in Partnership With the Largest …With Significant Room to Global Platforms… Grow Market Share 2022E Advertising Spend ($B)¹ International Approx. Gros
Slide 9: 360º Capabilities Across All Aspects of Digital Marketing Services
making science | Investors 360º Capabilities Across All Aspects of Digital Marketing Services One-Stop Shop and Strategic Partner at Every Stage User Experience Paid Media and User Platform Content Social Media & Feed Generation Campaign Analytics, CRO, Machine Data Lifetime Value & Brand Identity I
Slide 10: Why Clients Choose Making Science
making science | Investors Why Clients Choose Making Science Leveraging Our Competitive Strengths to Deliver a Differentiated Offering What Clients Want What Making Science Offers 1 Local Presence ✔ Team and local offices in the countries in which it operates 2 Integration of Specialized Teams ✔ 1000+
Slide 11: 02. 2021 Highlights
making science | Investors 02. 2021 Highlights Making Science Group, SA - Confidential
Slide 12: Key Achievements in The Last Year
making science | Investors Key Achievements in The Last Year Successfully Executing Our 360-Degree Client-Focused Strategy Entered 9 new Incorporated 155 new international markets Achieved 40% organic clients, excluding Won 706 new client since start of 2021 gross margin growth acquisitions contract
Slide 13: International Expansion Plan: Greatly Accelerated in 2021
making science | Investors International Expansion Plan: Greatly Accelerated in 2021 Strengthening Our Position as a Global Operator International Acquisitions Date Area of expertise / complementarity ● International expansion plan accelerated Oct. 2020 • Presence in Italy in 2021, as Making Science
Slide 14: International Expansion Plan: New Markets
making science | Investors International Expansion Plan: New Markets Diversifying Across the Globe Into Top Digital Advertising Markets 2021 Highlights +9 >15 +5 +2 2020 New Operational Integrated Hubs Current Countries Offices Companies In Latam 13 Making Science Group, SA - Confidential
Slide 15: International Expansion Plan: Global Diversification Progress
making science | Investors International Expansion Plan: Global Diversification Progress Rapid Global Diversification of Revenue and Employees Revenue by Region (2020 vs. 2021)¹ 3% 4% 13% ● Making Science has made significant progress in diversifying into Europe and the global economy 50% 37% ● In 2020
Slide 16: International Expansion Plan: Local Planet
making science | Investors International Expansion Plan: Local Planet Strengthening Our Position as a Global Operator ● In October 2021, Making Science joined Local Planet as its specialist digital consultancy partner ● Local Planet is an integrated network of 62 agencies providing media, marketing
Slide 17: Core Digital Business: 2021 Results
making science | Investors Core Digital Business: 2021 Results Significant Growth in Our Business Demonstrates the Strength of Our Core Operations Pro Forma Financial Results (2020 vs. 2021)¹ ● Pro forma revenue and gross margin grew In €M Recurring by 76% and 78% in 2021 to €106.6M and Revenue Gross
Slide 18: Core Digital Business: Pro Forma Recurring EBITDA
making science | Investors Core Digital Business: Pro Forma Recurring EBITDA Accelerating Both Organic and Inorganic Growth While Maintaining Profitability Pro Forma Recurring EBITDA (2020-2021)¹ ● Pro Forma Recurring EBITDA of €7.2M in In €M 2021 from Core Digital Business ● Robust growth in Spain w
Slide 19: Investments: E-Commerce & Products: 2021 Results
making science | Investors Investments: E-Commerce & Products: 2021 Results New Business Line Reinforces the Added Value of the Making Science Ecosystem Pro Forma Financial Results (2021)¹ ● Ventis e-commerce platform based in Italy In €M was acquired in May 2021 Gross Recurring Revenue Margin EBITD
Slide 20: E-Commerce: Public Market Considerations
making science | Investors Investments: E-Commerce & Products: Public Market Considerations Business Fundamentals Remain Strong Despite Market Environment Market Outlook Trading Multiples² ● Digital commerce stocks have fallen since E-Commerce % of Total reaching all-time highs at the height of the
Slide 21: E-Commerce: Value Creation Opportunity
making science | Investors Investments: E-Commerce & Products: Value Creation Opportunity Significant Value Creation Opportunity in Ventis Operational Improvement Potential Value of Ventis E-Commerce ● Numerous improvements being implemented to In €M Indicative Values Based on 2022E grow both GMV and
Slide 22: 03. Financial Update
making science | Investors 03. Financial Update Making Science Group, SA - Confidential
Slide 23: Income Statement Summary (GAAP)
making science | Investors Income Statement Summary (GAAP) 2021 Full Year Results Income Statement Summary ● Revenue growth of 92% and gross margin In €M 2020 2021 growth of 103% in 2021, from both organic and inorganic growth Revenue €57.7 €110.4 Cost of Sales (€42.9) (€80.4) ● Accounting EBITDA de
Slide 24: Balance Sheet Summary (GAAP)
making science | Investors Balance Sheet Summary (GAAP) 2021 Full Year Results Balance Sheet Summary ● Elevated cash balance of €30.2M at year end In €M 2020 2021 driven by debt financing in 2021 on favourable terms Cash and Equivalents €11.9 €30.2 Accounts Receivable €17.8 €29.7 ● Continued negative
Slide 25: Cash Flow Summary (GAAP)
making science | Investors Cash Flow Summary (GAAP) 2021 Full Year Results Cash Flow Summary ● Making Science continues to generate positive In €M 2020 2021 operating cash flow, with €7.2 million generated in 2021 vs. €3.5 million in 2020 EBITDA (Recurring) €3.7 €5.7 Non-Recurring Expenses (€0.2) (€3
Slide 26: Net Debt
making science | Investors Net Debt Disciplined Use of Debt Financing and Earn-Outs to Accelerate Growth Net Debt at December 31, 2021 (€ millions)¹ ● Net Debt has increased due to acquisitions Bank Debt² €24.6 undertaken in 2021 ● Acquisition-related earn-outs are recorded Bonds €11.8 as debt, alth
Slide 27: Credit Profile
making science | Investors Credit Profile Making Science is Well-Positioned to Finance its Growth Strategy Debt Maturity Schedule Credit Position 1 Adjusted Net Debt (Bond Covenant)² €27.7 Bond Covenant (2022 Year End) 3x Net Debt / EBITDA Credit Rating (Axesor)³ BB (Positive) Avg. Cost of Debt (Bank
Slide 28: Shareholder Information
making science | Investors Shareholder Information Significant Ongoing Investment from Key Stakeholders of the Company Share Information Shareholder Composition Free Float BME Growth (Madrid) Treasury Stock Stock Exchanges Euronext Growth (Paris) 3% Other Management, Employees and Shares Outstanding
Slide 29: Share Price and Analyst Coverage
making science | Investors Share Price and Analyst Coverage Delivering Outstanding Returns to Shareholders Shareholder Returns Equity Research Coverage Broker Analyst ~500% Return Fernando Abril-Martorell to Shareholders Since 2020 Listing Iván San Félix Carbajo ● Making Science has delivered outsta
Slide 30: 2022 Objectives
making science | Investors 2022 Objectives Expecting Another Outstanding Year for Making Science Continue seeking M&A and strategic partnerships to execute our international expansion plan Fully integrate teams and realize synergies of recent acquisitions Continue to deliver exceptional 360º client
Slide 31: 04. Q1 Update
making science | Investors 04. Q1 Update Making Science Group, SA - Confidential
Slide 32: Core Digital Business: Q1 Update
making science | Investors Core Digital Business: Q1 Update Q1 2021 vs. Q1 2022 Results Pro Forma Financial Results (Q1 2021 vs. 2022)¹ ● Pro forma revenue and gross margin grew In €M Recurring by 89% and 97% in Q1 2022 to €40.9M Revenue Gross Margin EBITDA and €11.7M, respectively +89% +97% +35% ●
Slide 33: Investments: E-Commerce & Products: Q1 Update
making science | Investors Investments: E-Commerce & Products: Q1 Update Q1 2022 Results Quarterly Distribution of Q1 2022 Results Revenue² ● In Q1 2022, Ventis generated €0.5M in gross In €M margin and -€0.5M in EBITDA¹ Gross Recurring Revenue Margin EBITDA ● Q1 results are affected by the strong Q
Slide 34: Appendix
making science | Investors Appendix Making Science Group, SA - Confidential
Slide 35: Pro Forma Results by Business Area FY2021
making science | Investors Pro Forma Results by Business Area FY2021 2020 2021 ‘20-’21 Growth Rates Core Dig. Core Dig. Invest- Core Dig. in €M Spain Int'l Spain Int'l Total Spain Int'l Bus Bus ments Bus Net Revenue 56.932 3.560 60.492 87.873 18.681 106.554 11.811 118.365 54.3% 424.7% 76.1% Cost of
Slide 36: Pro Forma Results by Business Area Q1 2022
making science | Investors Pro Forma Results by Business Area Q1 2022 Q1 2021 Q1 2022 Q1 ‘21-’22 Growth Rates Core Dig. Core Dig. Invest- Core Dig. in €M Spain Int'l Spain Int'l Total Spain Int'l Bus Bus ments Bus Net Revenue 17.594 4.042 21.636 22.932 17.942 40.873 3.588 44.461 30.3% 343.8% 88.9% C
Slide 37: Like-for-Like Results FY2021
making science | Investors Like-for-Like Results FY2021 in €M 2020 2021 % Growth ● “Like-for-like” results include only the Net Revenue 60.257 92.148 52.9% companies that were part of Making Science -43.508 -68.706 57.9% Cost of Sales as of December 31, 2020, in order to show Gross Margin 16.749 23.
Slide 38: Like-for-Like Results Q1 2022
making science | Investors Like-for-Like Results Q1 2022 in €M Q1 2021 Q1 2022 % Growth Net Revenue 21.636 28.405 31.3% Cost of Sales -15.721 -19.391 23.3% ● “Like-for-like” results include only the Gross Margin 5.915 9.014 52.4% companies that were part of Making Science % of Revenue 27.3% 31.7% as
Slide 39: Reconciliation of Preliminary Results to Audited Financial Statements
making science | Investors Reconciliation of Preliminary Results to Audited Financial Statements Proportionate Minority Consolidated in €M Consolidation Interest & Audited ● The preliminary results issued by (February) Eliminations Statements the company on February 21, Net Revenue 108.262 2.183 110
Slide 40: Reconciliation of GAAP to Pro Forma Figures
making science | Investors Reconciliation of GAAP to Pro Forma Figures Revenue Reconciliation (in €M) 2020 2021 Revenue (Income Statement) 57.671 110.445 Pro Forma Adjustments - M&A 2.821 10.940 Attributable to Minority Interest 1 - (3.020) Pro Forma Revenue 60.492 118.365 Core Digital Business 60.4
Slide 41: Thank you!
making science | Investors Thank you! The Digital Acceleration Company Making Science Group, SA - Confidential