Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — Investor Presentation (May 2018)
35 slides from Frontier Digital Ventures's investor presentation, May 23, 2018
Slide 1: Fully Underwritten Entitlement Offer
For personal use only FULLY UNDERWRITTEN ENTITLEMENT OFFER M AY 2 0 1 8 FRONTIER DIGITAL VENTURES
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER For personal use only Important Notices and Disclaimer This presentation (Presentation) has been prepared by Frontier Digital Ventures Ltd (ABN 25 609 183 959) (Frontier) in relation an accelerated non-renounceable entitlement offer of new fully paid ordinary shares
Slide 3: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER For personal use only Not financial product advice (continued) This Presentation does not and does not purport to contain all information necessary to make an investment decision and is not intended as investment or financial product advice (nor tax, accounting or le
Slide 4: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER For personal use only Disclaimer To the maximum extent permitted by law, (1) Frontier (including its subsidiaries, related bodies corporate, shareholders, affiliates, advisers and agents); (2) Bell Potter and Morgans (Joint Lead Managers) together with the Joint Lead
Slide 5: Contents
CONTENTS For personal use only Executive summary refer to slides 6-7 Capital Raising overview refer to slides 8-11 Company update refer to slides 12-18 Background on FDV refer to slides 19-27 Risks and international restrictions refer to slides 28-34 FRONTIER DIGITAL VENTURES 5
Slide 6: Executive Summary
EXECUTIVE SUMMARY For personal use only – FDV has an interest in 15 leading online classifieds businesses (operating companies) in markets with some of the world’s fastest growing GDP per capita and internet penetration rates – Its first investment, Zameen, has increased in equity value by 55x over
Slide 7: Consistent, Unbroken Revenue Growth Since Listing
CONSISTENT, UNBROKEN REVENUE GROWTH SINCE LISTING For personal use only Significant growth in revenues as operating companies progress towards cash flow breakeven Quarterly revenue (A$m, 100% basis, pro-forma Quarterly revenue (A$m, FDV equity share, unaudited)1 pro-forma unaudited)2 +77% CAGR3 +123
Slide 8: Capital Raising Overview
SECTION 1 CAPITAL RAISING OVERVIEW For personal use only FRONTIER DIGITAL VENTURES 8
Slide 9: Capital Raising Structure
CAPITAL RAISING STRUCTURE For personal use only FDV is raising A$14.4m via a fully underwritten accelerated non-renounceable entitlement offer = – Fully underwritten 1 for 10 accelerated non-renounceable entitlement offer to raise gross proceeds of approximately A$14.4m Offer size – Approximately 22
Slide 10: Expected Use of Funds
EXPECTED USE OF FUNDS For personal use only Expected use of funds 1 Future funding rounds in tier 1 businesses FDV is focused on maintaining or acquiring more of its — Pakwheels (A$1.8m, capital raising underway) existing tier 1 operating companies — Propzy (A$0.7m, participate above pro-rata) A$5.8
Slide 11: Illustrative Capital Raising Timetable
ILLUSTRATIVE CAPITAL RAISING TIMETABLE For personal use only Trading halt (before market open) Wednesday, 23 May 2018 Announcement of Entitlement Offer and Appendix 3B and cleansing statement lodgement Wednesday, 23 May 2018 Institutional Entitlement Offer opens Wednesday, 23 May 2018 Institutional
Slide 12: Section
SECTION 2 COMPANY UPDATE For personal use only FRONTIER DIGITAL VENTURES 12
Slide 13: Portfolio Progression to Cash Flow Breakeven
PORTFOLIO PROGRESSION TO CASH FLOW BREAKEVEN For personal use only Based on current expectations, 3 operating companies are expected to reach cash flow breakeven in 2018 and 6 companies in 2019 – Approximately half of the operating companies are expected Current expectation of cash flow breakeven to
Slide 14: Zameen Blueprint
ZAMEEN BLUEPRINT For personal use only FDV’s intention is for other operating companies to follow Zameen’s operational blueprint as they progress towards cash flow breakeven Optimising Zameen’s operational process Zameen equity value growth1,2 ▪ Zameen was optimised based on March 2014 Implement bes
Slide 15: Encuentra24: Trading Update
ENCUENTRA24: TRADING UPDATE For personal use only Encuentra24.com is the leading general classifieds platform in the key Central American markets of Panama, Costa Rica, Nicaragua and Honduras Business update – Encuentra24.com successfully expanded its leadership position in each of its core markets
Slide 16: Pakwheels: Trading Update
PAKWHEELS: TRADING UPDATE For personal use only The leading auto classifieds platform in Pakistan and one of the best examples of the successful roll-out of ancillary revenue streams across FDV’s portfolio Business update – The #1 online auto classifieds platform in Pakistan1 • FDV has an equity own
Slide 17: Infocasas: Trading Update
INFOCASAS: TRADING UPDATE For personal use only Infocasas is the #1 property online classifieds platform in Uruguay and Paraguay and a leading operator in Bolivia Business update – Established property portal market leader in Uruguay and Paraguay, now focused on revenue growth • #1 property portal i
Slide 18: Revenue per Website
REVENUE PER WEBSITE For personal use only FDV’s operating companies are working towards the Zameen blueprint with the majority recording strong revenue growth and progress towards profitability Revenue (A$000, 100% entity basis) Current Classifieds Q3 Q4 Q1 Q2 Q3 Q4 Q1 CAGR Website shareholding type
Slide 19: Background on FDV
SECTION 3 BACKGROUND ON FDV For personal use only FRONTIER DIGITAL VENTURES 19
Slide 20: FDV Snapshot
FDV SNAPSHOT For personal use only A leading operator of online classifieds businesses in emerging countries or regions Our story Our footprint Our optimisation process Focus on market Founded in 2014 by the former Developing Asia (ex. China and India) Due diligence leading businesses management tea
Slide 21: Portfolio Summary
PORTFOLIO SUMMARY For personal use only FDV has interests in 151 leading property, automotive and general classified online platforms in some of the largest emerging markets globally Current Classifieds Target Market position by Operating company shareholding type markets Population2 website session
Slide 22: FDV Strategy Update
FDV STRATEGY UPDATE For personal use only Clear focus on building a portfolio of tier 1 market leading online classified businesses in rapidly growing emerging markets Property bias Geographic focus Bias towards property classifieds Narrowed geographical focus with due to stronger opportunities to p
Slide 23: Increasing Equity Ownership Since IPO
INCREASING EQUITY OWNERSHIP SINCE IPO For personal use only FDV has consistently executed on its goal since IPO to increase its equity ownership of operating companies towards majority or 100% Operating companies at IPO Tier 1 assets IPO ownership Current ownership New tier 1 operating companies Enc
Slide 24: Continued Progress Across the Portfolio
CONTINUED PROGRESS ACROSS THE PORTFOLIO For personal use only FDV expects to see an increase in opportunities across its portfolio of operating companies which it will assess in the interests of all shareholders Sell down to existing shareholders Build portfolio of Continue to add Buy more of 10 cle
Slide 25: Ancillary Revenues Getting Closer to the Transaction
ANCILLIARY REVENUES GETTING CLOSER TO THE TRANSACTION For personal use only The journey towards the transaction is already proving to be fertile as several of Frontier’s businesses are unlocking ancillary revenue opportunities in frontier markets Property sales commissions through exclusive developm
Slide 26: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only FDV is focused on developing online classifieds businesses in underdeveloped, emerging countries or regions Share price performance (last 12 months) Top shareholders 90 Catcha Group (Patrick Grove and Luke Elliott) 39.8% 80 Shaun Di Gregorio (CEO & Founder) 1
Slide 27: CEO and Founder of FDV
CEO AND FOUNDER OF FDV For personal use only Online classifieds since 1999 2001 – 2009 • General manager REA Group – Australia (ASX:REA) • General manager REA Group – International 2010 – 2014 • CEO – iProperty Group (ASX:IPP) 2010 to 2014 achieved 3000% shareholder return – amongst the highest of a
Slide 28: Key Risks and International Offer Restrictions
SECTION 4 KEY RISKS AND INTERNATIONAL OFFER RESTRICTIONS For personal use only FRONTIER DIGITAL VENTURES 28
Slide 29: Key Risks
KEY RISKS For personal use only EARLY-STAGE BUSINESS RISK Frontier has interests ranging from 20% to 86% in a portfolio of businesses (run by the companies in which Frontier has interests which operate online classifieds businesses (Operating Companies)) some of which are in the early stages of deve
Slide 30: Key Risks
KEY RISKS For personal use only LOSS OF KEY PERSONNEL Frontier’s success is dependent on the retention of key employees, including the Chief Executive Officer, Shaun Di Gregorio who has been responsible for establishing Frontier and forming its relationships with the Operating Companies. Loss of the
Slide 31: Key Risks
KEY RISKS For personal use only INCREASED COMPETITION The internet is a business medium with low barriers to entry. It could be possible for current or new competitors to adopt certain aspects of the Operating Companies’ or Frontier’s business model without great financial expense, thereby reducing
Slide 32: Key Risks
KEY RISKS For personal use only RELATIONSHIP WITH CAR DEALERS, CAR MANUFACTURERS, REAL ESTATE AGENTS AND PROPERTY DEVELOPERS Many of the Operating Companies generate revenue through advertisements from car dealers, car manufacturers, real estate agents and property developers. In many cases, no form
Slide 33: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS For personal use only This document does not constitute an offer of new ordinary shares ("New Shares") of Frontier in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offe
Slide 34: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS For personal use only United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Servi
Slide 35: Contact Details
For personal use only 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
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