Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — H1 2020 Earnings Presentation
35 slides from Frontier Digital Ventures's earnings presentation, Aug 26, 2020
Slide 1: Leading Online Marketplaces in Emerging Markets: 2020 Half Year Results
For personal use only LEADING ONLINE MARKETPLACES IN EMERGING MARKETS 2020 HALF YEAR RESULTS PRESENTATION | 26 AUGUST 2020
Slide 2: Update on Operations, Strategy and Results
UPDATE ON OPERATIONS, STRATEGY AND RESULTS For personal use only SECTION 1 • Clear signs of recovery in July 2020, with revenue up +32% (FDV ownership basis) relative to the average revenue over the preceding 3 months Operational update • FDV successfully navigating the COVID-19 period from a positi
Slide 3: Operational Update
For personal use only OPERATIONAL UPDATE
Slide 4: Continued Progress Towards Profitability
CONTINUED PROGRESS TOWARDS PROFITABILITY Early and decisive action during the COVID-19 period highlighted FDV’s management expertise For personal use only Portfolio EBITDA margin1 (%, FDV basis) Half year Month2 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 Jul-20 (4%) (5%) (5%) (2%) (19%) Temporary
Slide 5: Clear Signs of Recovery in July 2020
CLEAR SIGNS OF RECOVERY IN JULY 2020 Revenue has recovered strongly as temporary lockdowns ease and commercial activity returns For personal use only REVENUE RECOVERY PROFITABILITY MAINTAINED • Revenue up +32% in July 2020 (FDV basis) relative to • Improved portfolio EBITDA margin of (2%) (FDV basis
Slide 6: Strong Recovery in Direct and Organic Traffic
STRONG RECOVERY IN DIRECT AND ORGANIC TRAFFIC Audience levels have returned to pre-COVID-19 levels in July 2020 For personal use only Direct and organic traffic across FDV’s portfolio (in aggregate) (m) 28 Temporary COVID-19 lockdowns impacted traffic 24 in 1H 2020 20 Strong recovery in traffic in J
Slide 7: Strong Recovery in Direct and Organic Traffic by Operating Company
STRONG RECOVERY IN DIRECT AND ORGANIC TRAFFIC Audience levels have returned to pre-COVID-19 levels in July 2020 For personal use only Direct and organic traffic by individual operating company (rebased to 31 July 2019) 200 Moteur Zameen 180 Pakwheels 160 West Africa 140 LankaPropertyWeb Encuentra24
Slide 8: Strong Recovery Across FDV's Operating Regions
STRONG RECOVERY ACROSS FDV’S OPERATING REGIONS Operating companies have experienced a recovery towards the end of 1H20 and into July 2020 For personal use only Developing Asia1 Central & South America Africa2 #1 Pakistan entered lockdown later than other regions Central America experienced challengi
Slide 9: Position of Strength in COVID-19 Environment
POSITION OF STRENGTH IN COVID-19 ENVIRONMENT For personal use only Growing global reputation as a classifieds expert and Significant increase in strategic partner inbound opportunities Oppotunities to consolidate Market leading portfolio benefiting from power and incumbency and 'flight to safety' ma
Slide 10: Position of Strength in COVID-19 Environment (CEO Quote)
POSITION OF STRENGTH For personal use only IN COVID-19 ENVIRONMENT “ FDV’s portfolio of market leaders is very well placed in the current environment, as the power of incumbency increases, and market leaders become more dominant. FDV’s reputation as a strategic partner continues to grow globally, ev
Slide 11: Portfolio Optimisation Activities
PORTFOLIO OPTIMISATION ACTIVITIES Continued optimisation of FDV’s portfolio to drive long-term shareholder value For personal use only ✓ Sale of 20% Propzy shareholding for cash consideration of US$4.7m (A$7.0 million) Monetisation ✓ Sale price represents a ~300% return to FDV‘s shareholders in ~2.5
Slide 12: Strategy Overview
For personal use only STRATEGY OVERVIEW
Slide 13: FDV's Proven Business Model
FDV‘S PROVEN BUSINESS MODEL Inherent flexibility and adaptability of FDV’s business model provides a clear competitive advantage For personal use only FDV PROVIDES VALUABLE STRATEGIC OVERSIGHT AND SUPPORT ✓ Unparalleled online classifieds expertise ✓ Leveraging learnings across portfolio ✓ Growing g
Slide 14: Strategy and Pathway to Profitability
STRATEGY AND PATHWAY TO PROFITABILITY Focused on pursuing scalable growth and achieving strong profitability For personal use only Deliver economies of scale Focus on long-term shareholder value Extend market leadership and unlock Various monetisation options for operating transactional revenues to
Slide 15: Growing Global Footprint
GROWING GLOBAL FOOTPRINT FDV’s footprint spans three continents in multiple verticals, providing access to large high growth markets For personal use only Current geographic breakdown Current portfolio split (#) Developing Asia1 Central & South America Africa2 General Automotive Property 72% of 1H20
Slide 16: Strong Track Record of Long-Term Value Creation
STRONG TRACK RECORD OF LONG-TERM VALUE CREATION For personal use only • One of the top global online classifieds executives with a strong track record of long-term value creation • Former CEO of iPropertyGroup (ASX: IPP) and General Manager at REA Group • Spearheaded the transformation of iProperty
Slide 17: Corporate Overview
CORPORATE OVERVIEW FDV has a strong balance sheet, and its shares are tightly held For personal use only Share price performance (last 12 months) Substantial shareholders 1.20 Catcha Group (Patrick Grove and Luke Elliott) 33.4% Shaun Di Gregorio (Founder and CEO) 14.1% 1.00 Smallco Investment Manage
Slide 18: 1H 2020 Results
For personal use only 1H 2020 RESULTS
Slide 19: Impact of Temporary COVID-19 Restrictions
IMPACT OF TEMPORARY COVID-19 RESTRICTIONS Recovery in website traffic and leads in July 2020 positions the portfolio well for 2H 2020 For personal use only Portfolio revenue since IPO Portfolio revenue since IPO (A$m, pro-forma unaudited; 100% basis) (A$m, pro-forma unaudited; FDV equity basis) COVI
Slide 20: Continued Progress Towards Profitability
CONTINUED PROGRESS TOWARDS PROFITABILITY 10 of 12 companies recorded improved EBITDA in 2Q 2020, despite the temporary COVID-19 lockdowns For personal use only FDV 2Q 2020 1Q 2020 ownership EBITDA EBITDA EBITDA change on prior quarter (%) A$ (FDV basis) A$ (FDV basis) (in absolute terms) InfoCasas 5
Slide 21: 1H 2020 Revenue Breakdown by Operating Company
1H 2020 REVENUE BREAKDOWN BY OPERATING COMPANY 1H 2020 revenue was down 7% on pcp (FDV basis) due to the temporary COVID-19 lockdowns For personal use only A$ (100% basis) A$ (FDV basis) FDV Operating company interest Classifieds type 1H 2020 Revenue 1H 2019 Revenue Growth 1H 2020 Revenue 1H 2019 Re
Slide 22: Appendix
For personal use only APPENDIX
Slide 23: Statutory Accounts
STATUTORY ACCOUNTS FDV’s current portfolio contains 9 investments which are accounted for on a consolidated basis and 3 For personal use only investments which are reported as “associates” under the equity method AASB128 Page number Operating company Accounting treatment 24 Zameen Equity accounted 2
Slide 24: Zameen Update
ZAMEEN UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The #1 property portal in Pakistan, acts as an intermediary for both Revenue buyers and sellers during property transactions EBITDA • Pakistan entered lockdowns later than other countries with impacts 21,995 C
Slide 25: Encuentra24 Update
ENCUENTRA24 UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The leading general online marketplace, recent combination with Revenue OLX’s online classifieds platforms in Central America EBITDA • Consolidated its position in its 2 largest markets, Panama and Costa
Slide 26: InfoCasas Update
INFOCASAS UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The #1 property portal in Uruguay, Paraguay and Bolivia Revenue 3,798 • Despite the challenging impacts of COVID-19, the successful EBITDA implementation of cost saving measures and renewed business activit
Slide 27: iMyanmarhouse Update
IMYANMARHOUSE UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The leading property classifieds platform in Myanmar, a rapidly Revenue growing market experiencing strong GDP growth EBITDA • Diligent cost saving measures at the onset of the pandemic have seen COVID-
Slide 28: Pakwheels Update
PAKWHEELS UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The leading automotive classifieds platform in Pakistan Revenue • Later lockdowns in Pakistan heavily impacted 2Q 2020 revenues EBITDA • Improvements in economic activity being seen following the easing 1,2
Slide 29: AutoDeal Update
AUTODEAL UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • Leading operator of online auto classified portals in the Philippines Revenue • Statically focused on new car sales as the new vehicle classifieds EBITDA market is less prone to disruption from lower value p
Slide 30: CarsDB Update
CARSDB UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The leading automotive classifieds platform in Myanmar Revenue COVID-19 • Focused on driving increased consumer penetration and brand EBITDA impact awareness and expanding innovative service to drive future gr
Slide 31: West Africa Update
WEST AFRICA UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • West Africa is comprised of 2 portfolio companies, MeQasa (#1 Revenue online property marketplace in Ghana) and PropertyPro (the #1 EBITDA online property marketplace in Nigeria) COVID-19 494 impact • Con
Slide 32: Hoppler Update
HOPPLER UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The #1 platform in the Philippines used by property vendors, buyers Revenue and agents to manage property transactions EBITDA • Hoppler is focused on positioning itself as the trusted real estate 600 535 498
Slide 33: Moteur Update
MOTEUR UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The #1 automotive marketplace in Morocco Revenue • Morocco is one of the most dynamic economies of the MENA region, EBITDA with a population of over 35m • Traffic and listings have recovered considerably in Ju
Slide 34: LankaPropertyWeb Update
LANKAPROPERTYWEB UPDATE For personal use only Business update Revenue and EBITDA (A$k, 100% basis) • The #1 online real estate portal in Sri Lanka Revenue COVID-19 • The business is well positioned to grow its core revenues as well as EBITDA impact launch new advertising products online and offline
Slide 35: Contact Us
HERE CONTACT US Shaun Di Gregorio For personal use only Founder and CEO P: +60 17 207 6221 E: shaundig@frontierdv.com VISIT US frontierdv.com Follow us on social media PRINCIPAL OFFICE 39-8 The Boulevard Mid Valley City, Lingkaran Syed Putra Kuala Lumpur, Malaysia
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