Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — H1 2022 Earnings Presentation
25 slides from Frontier Digital Ventures's earnings presentation, Aug 24, 2022
Slide 1: Leading Online Marketplaces in Emerging Markets
rsonal use only LEADING ONLINE MARKETPLACES IN EMERGING MARKETS 2022 HALF YEAR RESULTS PRESENTATION | 24 AUGUST 2022
Slide 2: Mission
Mission “ rsonal use only Become the leading global operator of online marketplace businesses in emerging markets ” FDV LATAM FDV Asia FDV MENA Annualised Revenue: A$44.6m1 Annualised Revenue: A$30.1m1 Annualised Revenue: A$8.7m1 ~53% of FDV portfolio revenue ~36% of FDV portfolio revenue ~11% of FD
Slide 3: Portfolio & Statutory Results
rsonal use only PORTFOLIO & STATUTORY RESULTS
Slide 4: 1H 2022 Highlights
1H 2022 HIGHLIGHTS rsonal use only Cash flow breakeven A$1.8m +A$2.2m A$41.7m +72% Operating cash flow breakeven achieved Half-year portfolio EBITDA on an FDV % Record half-year portfolio in 2Q 2022, with both FDV LATAM and share basis, with FDV achieving positive revenue on an FDV % share FDV Asia
Slide 5: FDV Reaches Cash Flow Breakeven
FDV REACHES CASH FLOW BREAKEVEN Consistent execution against strategy since IPO in 2016 focused on long-term sustainable growth Quarterly net operating cash flows (A$m; unaudited) rsonal use only Encuentra24 Targeted Adevinta Yapo increase in investments in acquisitions acquisition ownership FDV LAT
Slide 6: Portfolio EBITDA Margin
PORTFOLIO EBITDA MARGIN Demonstrates FDV’s proven ability to drive sustainable growth at the operating company level Portfolio EBITDA margin1 rsonal use only (FDV % share basis) 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 1H 2022 8% 6% 4% (4%) (2%) (5%) (5%) (20%)
Slide 7: Growth on a Sustainable Basis
GROWTH ON A SUSTAINABLE BASIS 9 operating companies were EBITDA positive in 1H 2022 1H 2022 1H 2021 rsonal use only FDV EBITDA change EBITDA EBITDA ownership (%) (in absolute terms) A$ (FDV % basis) A$ (FDV % basis) FDV LATAM 398,728 70,863 327,864 Operational review of Encuentra24 contributing to F
Slide 8: Delivering on Our Growth Strategy
DELIVERING ON OUR GROWTH STRATEGY Rapid revenue growth since IPO supports significant equity value creation Portfolio revenue since IPO (100% share basis) Portfolio revenue since IPO (FDV % share basis) rsonal use only (A$m) (A$m) 75.2 41.7 64.3 FDV 22.3 LATAM 31.3 50.3 FDV Onset of COVID-19 22.3 LA
Slide 9: 1H 2022 Statutory Results
1H 2022 STATUTORY RESULTS Breakeven Group operating EBITDA in 1H 2022 consistent with FDV’s prudent cost management 1H 2022 1H 2021 Change rsonal use only 1. Group operating revenue: Increased 42% PCP due to strong A$000 A$000 A$000 % organic growth particularly in LATAM (37%) & Asia excluding Reven
Slide 10: FDV Overview
rsonal use only FDV OVERVIEW
Slide 11: Portfolio Overview
PORTFOLIO OVERVIEW Established market leaderships positions underpinned by resilient core classifieds business model rsonal use only FDV LATAM FDV Asia FDV MENA 9.2x 62.0x #1 property portal Pakistan closest peer 1.8x #1 property portal Uruguay, closest peer #1 general marketplace closest peer Parag
Slide 12: Operating Metrics
OPERATING METRICS rsonal use only FDV LATAM FDV Asia FDV MENA Total users Users being directed to and landing on the operating company websites and mobile applications 85m 50m 32m Total sessions High engagement amongst users who return to the portals to complete multiple sessions 274m 155m 140m Tota
Slide 13: Transaction Momentum Building
TRANSACTION MOMENTUM BUILDING Unlocking the value of classifieds leadership to drive transaction volumes and revenue Property and auto transactions facilitated +81% rsonal use only vs H1 2021 10,666 9,618 Onset of COVID-19 5,891 4,661 3,655 3,630 2,616 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021
Slide 14: Strategic Focus
STRATEGIC FOCUS Compelling opportunity to leverage market leadership positions to drive long-term earnings profile rsonal use only Observed increase in change in consumer behaviour 2022 towards purchasing higher value items online Focus on organic growth initiatives as all Online marketplaces act as
Slide 15: Realising FDV's Full Potential
REALISING FDV'S FULL POTENTIAL Leveraging the strength of core classifieds to drive transactions and create long-term equity value rsonal use only Monetisation opportunities (not exhaustive) Value $ catalysts FDV continues to explore potential monetisation Market intermediary options to maximise val
Slide 16: Additional Information
rsonal use only ADDITIONAL INFORMATION
Slide 17: Technology Roadmap
TECHNOLOGY ROADMAP FDV Group is considering high value applications of AI to create significant value across its portfolio rsonal use only Computer Recommendation Onboarding Predictive vision engine verification pricing Core classifieds Transactions AI models to automatically identify key AI models
Slide 18: FDV's Capital Raising History
FDV’S CAPITAL RAISING HISTORY Track record of raising capital efficiently, with shareholder value front of mind FDV’s primary and secondary capital raising history rsonal use only Offer price (A$) 1.50 1.25 0.98 0.78 0.65 0.50 Aug-16 May-18 Dec-19 Jul-20 Oct-20 Dec-21 Market capitalisation at last A
Slide 19: Strong Track Record of Long-Term Value Creation
STRONG TRACK RECORD OF LONG-TERM VALUE CREATION rsonal use only • One of the top global online marketplace 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 Group
Slide 20: Corporate Overview
CORPORATE OVERVIEW FDV has a strong balance sheet, and its shares are tightly held Share price performance since year to date Substantial shareholders rsonal use only $1.70 Catcha Group (Patrick Grove and Luke Elliott) 11.6% $1.50 Shaun Di Gregorio (Founder and CEO) 9.8% Barca Global Master Fund 7.4
Slide 21: Statutory Accounts
STATUTORY ACCOUNTS FDV’s current portfolio contains 14 investments which are accounted for on a consolidated basis and 2 investments which are reported as “associates” under the equity method AASB128 rsonal use only Operating company Accounting treatment FDV LATAM InfoCasas Consolidated Encuentra24
Slide 22: Financial Profiles
FINANCIAL PROFILES Half-yearly revenue by business since IPO (100% basis) FDV 1H FY22 2H FY21 1H FY21 2H FY20 1H FY20 2H FY19 1H FY19 2H FY18 1H FY18 2H FY17 1H FY17 2H FY16 rsonal use only ownership ($A) ($A) ($A) ($A) ($A) ($A) (A$) (A$) (A$) (A$) (A$) (A$) FDV LATAM 22,312,339 22,774,720 15,774,1
Slide 23: Financial Profiles (cont.)
FINANCIAL PROFILES (cont.) Half-yearly EBITDA by business since IPO (100% basis) FDV 1H FY22 2H FY21 1H FY21 2H FY20 1H FY20 2H FY19 1H FY19 2H FY18 1H FY18 2H FY17 1H FY17 2H FY16 rsonal use only ownership ($A) ($A) ($A) ($A) ($A) ($A) (A$) (A$) (A$) (A$) (A$) (A$) FDV LATAM 398,728 1,288,187 (8,36
Slide 24: Contact Us
CONTACT US COMPANY Shaun Di Gregorio rsonal use only Founder and CEO P: +60 3 2700 1591 E: shaundig@frontierdv.com INVESTORS Timothy Toner Vesparum Capital P: +61 3 8582 4800 E: frontierdv@vesparum.com PRINCIPAL OFFICE 39-8 The Boulevard Mid Valley City, Lingkaran Syed Putra Kuala Lumpur, Malaysia w
Slide 25: Disclaimer
DISCLAIMER The material contained in this presentation is non-specific and is a summary of the background to the Company's activities. As this information is in a rsonal use only summary form it is not intended to be complete. Independent advice should be sought by investors or potential investors.
Frontier Digital Ventures — H1 2022 Earnings Presentation on 6ix