Slide 1: Online Marketplaces in Emerging Markets: FY19 Full Year Results Presentation
ONLINE MARKETPLACES IN EMERGING MARKETS FY19 FULL YEAR RESULTS PRESENTATION | FEBRUARY 2020 FRONTIER DIGITAL VENTURES
Slide 2: Results and strategy overview
Results and strategy overview SECTION 1 • +75% increase in full year FY19 portfolio revenue to A$72.5m (100% basis), up from +57% increase achieved in FY18 FY19 results • +66% increase in FDV economic share of FY19 portfolio revenue to A$23.6m • 4 operating companies recorded positive EBITDA in FY19
Slide 3: FY19 Results
SECTION 1 FY19 RESULTS FRONTIER DIGITAL VENTURES 3
Slide 4: Rapid revenue growth
Rapid revenue growth Portfolio revenue since IPO Portfolio revenue since IPO (A$m, pro-forma unaudited; 100% basis) (A$m, pro-forma unaudited; FDV equity basis) 12.8 39.6 10.9 32.9 +6.2x +9.1x growth on growth on FDV 8.0 100% basis 23.4 equity basis 6.3 18.1 5.1 15.1 11.4 3.5 8.6 2.4 6.4 1.4 1H16 2H
Slide 5: Strong progress towards profitability
Strong progress towards profitability Strong and consistent revenue growth over the last four years as profitability approaches Portfolio revenue and EBITDA Portfolio EBITDA as a % of revenue (A$m, FDV equity basis unaudited) (FDV equity basis)1 Revenue EBITDA 2016 2017 2018 2019 (9.3%) 23.6 (25.6%)
Slide 6: Consistent growth in key operating metrics
Consistent growth in key operating metrics +187% +88% Advertisers (k) Total sessions (m) 175 183 207 210 154 158 185 191 135 155 162 124 109 125 97 73 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2016 2016 2017 2017 2018 2018 2019 2019 2016 2016 2017 2017 2018 2018 2019 2019 Clear focus on key mo
Slide 7: Continued growth across the portfolio in FY19
Continued growth across the portfolio in FY19 A$ (100% basis) A$ (FDV basis) FDV Operating company interest Classifieds type FY18 Revenue FY19 Revenue Growth FY18 Revenue FY19 Revenue Growth Zameen 30% Property 22,405,297 42,329,072 +89% 6,721,591 12,698,725 +89% Encuentra24 42% General 7,474,347 8,
Slide 8: Strategy Overview
SECTION 2 STRATEGY OVERVIEW FRONTIER DIGITAL VENTURES 8
Slide 9: FDV snapshot
FDV snapshot Operator of leading online marketplaces, primarily in Developing Asia (ex China and India) and Central and South America Our story Our current footprint Founded in 2014 by the former management team Developing Asia1 of iProperty and Catcha Group Malaysia (HQ) Myanmar Pakistan Philippine
Slide 10: Geographic breakdown
Geographic breakdown Narrowed geographical focus with priority of developing Asia (ex. China and India), Central and South America and Africa /MENA Developing Asia1 Central and South America Africa/MENA 74% of FY19 revenue2 23% of FY19 revenue2 3% of FY19 revenue2 3 #1 Note: FY19 results figures quo
Slide 11: Property bias
Property bias FDV has a bias towards property classifieds as a result of typically stronger opportunities to establish larger, market leading businesses Portfolio split (#) Property Automotive 76% of FY19 revenue1 10% of FY19 revenue1 General 1 Automotive 4 Property 7 General 14% of FY19 revenue Not
Slide 12: FDV's business model
FDV’s business model FDV’s business model is focused on Unlock v2.0 classifieds revenue 3 streams closer to the transaction unlocking v2.0 online classified revenue streams on the way Requires strong revenue base and clear market to the transaction leadership 2 Build base of traditional online class
Slide 13: Portfolio progressing towards positive EBITDA
Portfolio progressing towards positive EBITDA FDV FY 2018 FY 2019 equity EBITDA EBITDA EBITDA growth on pcp (%) A$ (FDV basis) A$ (FDV basis) (in absolute terms) AutoDeal 56% (128,365) 100,841 4 operating companies Infocasas 51% (16,556) 82,561 recorded positive EBITDA Zameen 30% (1,116,935) 79,472
Slide 14: Recent portfolio optimisation activities
Recent portfolio optimisation activities Recent announcements have highlighted FDV’s funding flexibility and focus on shareholder returns Date Milestone Details ✓ 4.4x value uplift at MeQasa to FDV's initial investment Sep-19 Valuation uplift ✓ Transaction completed at 25x revenue multiple ✓ Increas
Slide 15: Monetisation opportunities increasing
Monetisation opportunities increasing Sell down to existing shareholders Establish and Continue to add Assess consolidate value across the monetisation Sale to financial investor market leadership portfolio opportunities Tranche sale to new shareholders $ Trade sale to Optimise the portfolio balance
Slide 16: Strong track record
Strong track record • One of the top global online classifieds executives with a track record of success • Former CEO of iPropertyGroup (ASX: IPP) and General Manager at REA Group • Spearheaded the transformation of iProperty Group from a US$15m small online business into the largest listed internet
Slide 17: Corporate overview
Corporate overview FDV has a strong balance sheet, and its shares are tightly held Share price performance (last 12 months) Top shareholders 1.20 Catcha Group (Patrick Grove and Luke Elliott) 34.4% Hundreds Shaun Di Gregorio (Founder and CEO) 14.5% 1.00 Smallco Investment Manager 8.5% Barca Global M
Slide 18: Additional Information
APPENDIX ADDITIONAL INFORMATION FRONTIER DIGITAL VENTURES 18
Slide 19: Statutory accounts
Statutory accounts FDV’s current portfolio (ex. Propzy) contains 8 investments which are accounted for on a consolidated basis and 3 investments which are reported as “associates” under the equity method AASB 128 Ordered based on FY19 revenue contribution (FDV basis) Page number Operating companies
Slide 20: Zameen update
Zameen update Revenue and EBITDA (A$m, 100% basis) Business updates Revenue EBITDA • The #1 property portal in Pakistan 20.3 22.0 • The platform acts as an intermediary for both buyers and 12.7 sellers during property transactions 9.7 7.3 • Strong revenue growth along with positive EBITDA in FY19 5.
Slide 21: Encuentra24 update
Encuentra24 update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The leading general online marketplace in Panama, Costa 4,087 Rica, Nicaragua and Honduras 3,650 3,824 3,989 3,299 3,319 • Following key mangerial appointments and a strengthening of the company‘s competitve po
Slide 22: Infocasas update
Infocasas update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The #1 property portal in Uruguay, Paraguay and Bolivia 3,798 • Infocasas entered the Peruvian market in mid-2019. Peru has 2,224 a substanitally larger population and GDP than Uruguay, 1,726 Paraguay and Bolivia
Slide 23: iMyanmarhouse update
iMyanmarhouse update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The leading property classifieds platform in Myanmar 983 936 • Significant investment in management capability, with 736 several new hires throughout the year, has lead to revenue 642 452 477 growth and posit
Slide 24: PakWheels update
PakWheels update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The leading automotive classifieds platform in Pakistan 1,205 • Sucessfully improved its operating metrics in 2H FY19, 1,029 1,006 884 1,027 following significant market headwinds throughout 1H FY19 643 • The mar
Slide 25: AutoDeal update
AutoDeal update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The leading operator of online car classified portals in the 1,009 Phillipines 826 • AutoDeal‘s business focuses on new car sales, this strategic 586 decision has been made as the competitve landscape in the 412 4
Slide 26: CarsDB update
CarsDB update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The leading automotive classifieds platfrom in Myanmar 498 535 409 • In FY19, CarsDB focused on driving increased consumer 226 222 penertration and brandawareness as well as expanding its 71 innovative service offer
Slide 27: West Africa update
West Africa update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • West Africa is comprised of 2 portfolio comapnies, MeQasa 494 (#1 online property marketplace in Ghana) and PropertyPro 382 358 (the #1 online property marketplace in Nigeria) 226 269 208 • In September 2019, M
Slide 28: Hoppler update
Hoppler update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The #1 platform in the Phillipines used by property vendors, buyers and agents to manage property transactions 535 498 430 • Throughout FY19, Hoppler invested in expanding brand 334 185 203 awareness to grow its ne
Slide 29: Moteur update
Moteur update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The #1 automotive marketplace in Morocco 313 230 246 • Morocco is one of the most dynamic economies of the 129 143 MENA region, with a population of over 35m 71 • Moteur management, with FDV strategic guidance, achi
Slide 30: LankaPropertyWeb update
LankaPropertyWeb update Revenue and EBITDA (A$k, 100% basis) Business updates Revenue EBITDA • The #1 online real estate portal in Sri Lanka 259 265 • Throughout FY19, LankaPropertyWeb focused on driving 242 customer penetration and brand awareness 207 129 155 • The buisness is well positioned to gr
Slide 31: Contact details
Contact details Principal Office 39-8 The Boulevard Mid Valley City, Lingkaran Syed Putra Kuala Lumpur, Malaysia Telephone: +60 3 2201 0790 FRONTIER DIGITAL VENTURES