Slide 1: Other Relevant Information notice
Madrid, April 11, 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 Securities Markets and Inv
Slide 2: Investor Presentation Q1 2024 Earnings Preview
APRIL 11 RESULTS 2024 INVESTOR PRESENTATION Q1 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 Q1 2024 Earnings Preview 01 Overview of Making Science 02 Where are we today in the development of Making Science? 03 Overview of our Principal Markets 04 Business Lines 05 Q1 2024 Results 06 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: 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: Phases of Making Science
Evolution Phase 3 of Making Science Revenue (millions of euros) The company is entering 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 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: 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 17: 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 18: Why is it Important to be a GMP Reseller?
Why is it Important to be a GMP Reseller? Google Marketing Platform is the leading Digital Marketing platform, used by major companies Type of Clients Using The Market Opportunity in Spain vs. the US Google Marketing Platform Spain USA Sales Partners: Analytics 6 18 Sales Partners: Advertising 5 15
Slide 19: Google Certified Resellers in the USA
Google Certified Resellers in the USA Company Certifications Global/Local ✓ ✓ 7 Global ✓ ✓ 7 Global ✓ ✓ 6 Global Making Science is ✓ ✓ 6 Local part of a select ✓ ✓ 6 Global group of resellers in ✓ ✓ 6 Global ✓ ✓ 5 Global the USA operating ✓ ✓ 5 Local globally ✓ ✓ 5 Local ✓ ✓ 5 Global ✓ ✓ 5 Global Sour
Slide 20: Global Diversification
Global Diversification EBITDA and employees GROSS MARGIN BY REGION 2020 vs. 2023 EMPLOYEES BY REGION 3% 7% 46% 55% 45% 54% 97% 93% Making Science has In 2020, 97% of the gross margin came from Spain; in 2023, this figure has been reduced to only 54%. made significant progress in As Making Science has e
Slide 21: Overview of our Principal Markets
03 Overview of our Principal Markets 20
Slide 22: Making Science is Becoming More Global
Making Science is Becoming More Global 21
Slide 23: Spain
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: Spain People 520 Entry into Market 2016 Acquisition / Entry Terms n/a Selected clients: 22
Slide 24: Italy
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: Italy People 100 Entry into Market 2020 €4.1M in cash Acquisition / Entry Terms €2.0M in earn-out €1.0M in shares Selected clients: 23
Slide 25: United Kingdom
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: United Kingdom People 25 Entry into Market 2021 €2.5M in cash Acquisition / Entry Terms €2.0M in earn-out €1.7M in shares Selected clients: 24
Slide 26: France
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: France People 55 Entry into Market 2021 €5.5M in cash Acquisition / Entry Terms €2.7M in earn-out €4.7M in shares Selected clients: 25
Slide 27: Colombia & Mexico
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: Colombia & Mexico People 35 Entry into Market 2021 Acquisition / Entry Terms Organic Selected clients: 26
Slide 28: Sweden, Denmark, Norway and Finland
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: Sweden, Denmark, Norway and Finland People 70 Entry into Market 2022 €1.3M in cash €5.9M in earn-out Acquisition / Entry Terms €2.9M in shares (Sweden & Denmark) Named Agency of the Year in Sweden for the second year in
Slide 29: Georgia
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: Georgia People 350+ Entry into Market 2021 €1.5M in cash Acquisition / Entry Terms €4.2M in earn-out €2.6M in shares Selected clients: 28
Slide 30: USA
Es el momento de crecer en USA Making Science irrumpe en el mercado Our Markets: USA People 15 Entry into Market 2021 / 2023 Small acquisition in Acquisition / Entry Terms 2021, organic in 2023 Selected clients: 29
Slide 31: Business Lines
Business Lines making science 30
Slide 32: MSG Legal Entity Structure
MSG Legal Entity Structure Making Science Group, S.A. [ES] 100% Making Science Making Science Making Science Making Science AI & Making Science LTD Marketing & AdTech Investments Sweeft International SAAS [ES] [IE] [ES] [ES] LTD [UK] MS Digital 100% 100% Crepes & 100% 100% 100% MS Labs [ES] Ventis S
Slide 33: 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 34: New Business Line Heads
New Business Line Heads Co- CEO COO COO COOs 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. 70% of
Slide 35: Business Lines Q1 2024
Business Lines Q1 2024 These estimates are provided for Cloud, directional purposes only. More Digital Software and SaaS and AI Investments detailed information will be Marketing Cybersecurity provided in the future. Gross Margin (€ millions) 11 4.4 1.1 1 Annual Growth 16.0% 7.0% 23% 33% 34
Slide 36: Q1 2024 Results
05 Q1 2024 Results making 35
Slide 37: Market Environment: Declining growth rates
Market Environment Declining growth rates Year-over-year revenue growth rates (2021 - 2023)¹ 2 3 3 1. Source: Statista, annual and quarterly reports. 36 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 38: Q1 2024 Results: Consolidated
Q1 2024 Results Consolidated Our international investments Results (Q1 2023 vs. Q1 2024) made in prior years and cost control policies are producing +15% strong operating leverage. €62.4 €54.0 ● The combination of an established market such as +15% Spain growing at 10% and the international segment
Slide 39: Q1 2024 Highlights: Spain
Q1 2024 Highlights: Spain 01 02 03 04 Selected New Clients Financial Results Services Partner of the Year 2024 New Gauss Tool Recurring EBITDA Cookie Deprecation Impact ▲62% Tool This is the first solution Growth Q1 2023-2024 that will allow companies to measure in real time with percentage data what
Slide 40: Q1 2024 Highlights: International
Q1 2024 Highlights: International 01 02 03 04 Selected New Clients Financial Results New Certifications Joint Venture in Finland Gross Margin (40%) (60%) ▲25% Expansion of comprehensive Growth services and consolidation of Q1 2023-2024 leadership in the Nordic countries. The value of a local agency w
Slide 41: Q1 2024 Highlights: USA
Q1 2024 Highlights: USA 01 02 03 04 Selected New Clients Google Marketing Platform Reseller Event with Google: Privacy Challenge Focus on New Business as Reseller 3 Reseller contracts AI new Technology & signed platforms opportunities changes 2 contracts in advanced negotiation As of January 1, 2024
Slide 42: Our Growth Cycle in New Markets
Our Growth Cycle in New Markets Investment in Talent Customer Growth Growth in Revenue and and Marketing Gross Margin EBITDA Growth ● Increase in personnel ● Gross margin growth ● Accelerated gross ● Other expenses not expenses ● Increase in personnel margin growth growing ● Increase in other expens
Slide 43: Q1 2024 Results: Core Business
Q1 2024 Results Core Business Significant growth in our Results (Q1 2023 vs. Q1 2024) business demonstrates the strengths of our core +15% operations (Core Business). €59.4 €51.6 ● Revenues and gross margin grew by 15% and 14% in Q1 2024, to €59.4 million and €16.6 million, respectively +14% ● Recurr
Slide 44: Core Business by Segment
Q1 2024 Results Core Business by Segment Spain (Q1 2023 vs. Q1 2024) International (Q1 2023 vs. Q1 2024) +10% €35.8 €32.4 +23% Primarily due to the impact €23.6 of the USA. +23% without €19.2 Investment in Talent +6% +25% +62% -37% €8.5 €8.0 €8.1 €6.5 €2.7 €1.7 €1.0 €0.6 Revenue Gross Margin Recurri
Slide 45: Q1 2024 Gross Margin by Country
Q1 2024 Gross Margin Core Business by Country Gross Margin by Country IFRS Numbers in € '000 1Q23 2Q23 3Q23 4Q23 1Q24 Var. 1Q24/23. % Spain 8,033 7,039 7,940 9,149 8,527 6.1% International 6,464 6,564 6,923 8,028 8,054 24.6% - France 1,028 985 1,071 1,325 1,512 47.0% - Italy 914 956 914 897 1,103 20
Slide 46: Q1 2024 EBITDA by Country
Q1 2024 EBITDA Core Business by Country Recurring EBITDA by Country IFRS Numbers in € '000 1Q23 2Q23 3Q23 4Q23 1Q24 Var. 1Q24/23. % Spain 1,697 604 1,114 2,418 2,749 62.0% International 1,009 402 583 426 635 -37.0% - France 329 352 361 314 505 53.5% - Italy 227 300 244 102 301 32.6% - Nordics 184 25
Slide 47: 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 48: Core Business: Margin evolution
Q1 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 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 reversed ●
Slide 49: Investments: E-Commerce & Products
Q1 2024 Results Investments: E-Commerce & Products Significant opportunity for value creation in Ventis' Results (Q1 2023 vs. Q1 2024) operational improvement ● Net revenues increased by 23% in Q1 2024 over Q1 2023, and gross margin +23% increased by 31%, as the profitability improvement initiatives b
Slide 50: Adoption of IFRS
Adoption of IFRS Principal impacts The audited financial statements for the year ended December 31, 2023 will be published in accordance with International Financial IFRS 9 IFRS 16 IFRS 38 Reporting Standards (IFRS). (Expected losses) (Finance leases) (Goodwill) The Group will adopt an For leases ide
Slide 51: Guidance 2024 and Plan 2027
06 Guidance 2024 and Plan 2027 50
Slide 52: Objectives
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 51
Slide 53: 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 54: Stability and Predictability of Revenues (1)
1) Stability and Predictability of Revenues 85% of service revenues are based on monthly fees with long term contracts 2020 and 2021 are based on service revenues. 2022 and 2023 are based on reported gross margin by segment. 53
Slide 55: Stability and Predictability of Revenues (2): Low client turnover
2) Stability and Predictability of Revenues Low client turnover Low client turnover Gross Margin (Spain) (€ millions) Customer churn has historically been quite low and has been offset by growth in both the number of customers and cross-selling / upselling of existing customers. Low customer churn a
Slide 56: Stability and Predictability of Revenues (3): Low client concentration
3) Stability and Predictability of Revenues Low client concentration Top 20 Clients at Q1 2024 Top 20 Clients vs. Rest of clients (% of total gross margin) (% of total gross margin) Low client concentration ● Among Making Science's largest customers, no single customer accounts for more than 6.3% of
Slide 57: 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 58: 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 59: Q&A
Q&A 58 INVESTOR PRESENTATION
Slide 60: Thank you
Thank you INVESTOR PRESENTATION THE DIGITAL ACCELERATION COMPANY 59
Slide 61: Appendix
APPENDIX 60
Slide 62: Q1 2024 Results by segment
Q1 2024 Results By segment Q1 2023 Q1 2024 Var. Figures in € '000 Spain Int'l Core Invest, Total Spain Int'l Core Invest, Total Spain Int'l Core Revenues 32,411 19,233 51,644 2,402 54,046 35,777 23,641 59,418 2,963 62,381 10.4% 22.9% 15.1% Cost of Sales (24,378) (12,769) (37,147) (1,668) (38,815) (2
Slide 63: Shareholder Information
Shareholder Information Significant ongoing investment from key stakeholders of the company Share Information Shareholder Composition 63% The (Madrid) Science of Digital, Green Scientific Tree, Bastiat Internet Ventures (José Antonio Martínez Aguilar, President and CEO) (Paris) 21% Other management an
Slide 64: 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 65: 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 64
Slide 66: Appendix: Case Studies
APPENDIX Case Studies 65
Slide 67: Case Study: Gauss AI
CASE STUDY Gauss AI The Challenge The results In the insurance market, reducing claims and customer defaults ● By bidding on tROAS with Value-Based Bidding, we generated is key. MAPFRE faced the major challenge of translating business 17% more sales while reducing sales categorised as high risk by i
Slide 68: Case Study: Ad-Machina
CASE STUDY Ad-Machina The Challenge The results During the pandemic, there were many factors that nearly ruined ● The project started with a simple AB test in their brand the travel industry including border and hotel closings, as well as campaigns, in the UK and the USA. This test brought about a a
Slide 69: Case Study: Custom CDP
CASE STUDY Custom CDP The Challenge The results The COVID-19 pandemic had a profound impact on the hospitality The outcome of this collaboration was that RIU successfully industry. Changes in tourist behavior, including a decrease in the established its 1st Party Data within its dedicated Google Clo
Slide 70: Thank you!
THANK YOU! THE DIGITAL ACCELERATION COMPANY