Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — FY2023 Earnings Presentation
30 slides from Frontier Digital Ventures's earnings presentation, Feb 28, 2024
Slide 1: Leading online classifieds marketplaces in emerging regions
Leading online classifieds marketplaces in emerging regions 2023 Full Year Results Presentation ASX: FDV | 28 February 2024
Slide 2: Contents
CONTENTS FDV overview 3 2023 financial results 7 Operating regions – 360 LATAM, MENA 14 Marketplaces Group (“MMG”), FDV Asia Product update 20 Outlook 24 Additional information 26 2
Slide 3: About FDV
ABOUT FDV Leading online classifieds marketplaces in emerging regions Proven classifieds marketplace model Classifieds marketplaces play a central role in formalising markets, with FDV focusing on high value consumer goods – property and automotive. Classifieds have been some of the most successful
Slide 4: Market leading brands
MARKET LEADING BRANDS FDV Group structured across three geographic regions to support FDV at full potential FDV ASIA #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 Note – FDV Asia marketplaces Zameen and PakWheels are Associates which are equity accounted entities. 4
Slide 5: Proven business model
PROVEN BUSINESS MODEL Highly successful online business model with unique opportunity to facilitate transactions in emerging markets Business model Market characteristics Classifieds Ancillary Transactions • Opportunity to generate • Lower levels of trust between • Agents and developers advertise si
Slide 6: Opportunity in emerging markets
OPPORTUNITY IN EMERGING MARKETS Online classifieds marketplaces have significant leverage to population and economic factors, with emerging markets amplifying the opportunity Population GDP Internet penetration Mobile connections 882m A$4.4tn 68% 125% Population of FDV‘s markets Aggregate GDP across
Slide 7: 2023 financial results
2023 financial result FRONTIER DIGITAL VENTURES
Slide 8: 2023 Group financial highlights
2023 GROUP FINANCIAL HIGHLIGHTS Statutory revenue growth, step change in EBITDA and maiden net profit of A$1.3m in 2H 2023 2023 statutory revenue 2023 statutory EBITDA 2H 2023 NPAT A$67.9m A$3.7m A$1.3m +15% on 2022 +A$8.3m on 2022 A$(9.9)m in 1H 2023 2023 operating revenue of 2023 operating EBITDA
Slide 9: Statutory revenue since IPO
STATUTORY REVENUE SINCE IPO 15% year-on-year revenue increase in 2023, with momentum building in 2H 2023 following challenging 1H 2023 FDV Group revenue since IPO (A$m) Statutory revenue Statutory revenue inc. Associates 80.6 12.7 Revenue from 67.9 Associates +15% 59.2 51.1 36.7 30.0 29.4 Statutory
Slide 10: Full year statutory revenue breakdown
FULL YEAR STATUTORY REVENUE BREAKDOWN Record FDV Group statutory revenue of A$67.9m, increasing 15% on 2022 FDV Group statutory revenue breakdown (A$m) 360 LATAM • A$52.1m revenue in 2023, a 15% increase on 2022. 80.6 • Strong performance in the property vertical, improved sales team Revenue from pr
Slide 11: Statutory operating expenses breakdown
STATUTORY OPERATING EXPENSES BREAKDOWN Flat cost base in 2023 while maintaining topline growth demonstrates emerging operating leverage Group operating expenses breakdown (A$m) Group operating expenses 2022 2023 • Total group operating expenses in 2023 remained flat relative to 2022, in line with FD
Slide 12: Full year EBITDA breakdown
FULL YEAR EBITDA BREAKDOWN A$8.4m improvement in statutory EBITDA driven by strong earnings growth of 360 LATAM and MMG Group statutory EBITDA (A$m)1 Statutory EBITDA 4.8 EBITDA from • Group statutory EBITDA of A$3.7m in 2023, improving A$8.3m from 1.2 Associates A$(4.7)m in 2022, including: o 360 L
Slide 13: 2023 summary statutory results
2023 SUMMARY STATUTORY RESULTS 2023 1H 2023 2H 2023 2022 Change A$000 A$000 A$000 A$000 A$000 % Commentary on results Summary of operating results 1. Group statutory revenue: A$67.9m statutory revenue in FY23, increasing 15% on FY22, driven by organic growth of 360 LATAM (15%), MENA Marketplaces Gro
Slide 14: Operating regions
Operating regions FDV ASIA 14
Slide 15: 360 LATAM financial update
FINANCIAL UPDATE Record revenue of A$52.1m and EBITDA of A$4.4m, driven by efficiencies generated from the 2022 restructure Revenue (A$m) Revenue by category (%)1 EBITDA (A$m) and margin (%) 52.1 Other, 8% +8% 45.2 Transactions, Recurring 4.4 14% subscription, 49% +1% 0.5 Advertising & Media, 28% 20
Slide 16: MENA Marketplaces Group financial update
FINANCIAL UPDATE Record revenue of A$9.6m and EBITDA of A$1.5m, driven by cost base efficiencies Revenue (A$m)1 Revenue by category (%)2 EBITDA (A$m) and margin (%)1 9.6 Transactions +16% 9.0 & Other, 1% 1.5 Recurring Advertising & subscription, Media, 44% 55% 2022 2023 (1.8) 2022 2023 (20%) • Recor
Slide 17: FDV Asia financial update
FDV ASIA FINANCIAL UPDATE Record revenue of A$6.2m and EBITDA of A$0.7m, representing a significant A$0.8m EBITDA improvement Revenue (A$m) Revenue by category (%)1 EBITDA (A$m) and margin (%) 6.2 Recurring +11% 5.0 subscription, 0.7 13% Advertising & Media, 15% (0.2) 2022 2023 Transactions & Other,
Slide 18: FDV Asia – equity accounted entities (Associates)
FDV Asia – equity accounted entities (Associates) 18
Slide 19: FDV Asia Associates financial update
FDV ASIA FINANCIAL UPDATE Associates maintained positive EBITDA of A$1.2m despite challenging operating environment in Pakistan Revenue (A$m) Revenue by category (%)1 EBITDA (A$m) and margin (%) 25.9 +18% Recurring subscription, 4.7 12.7 26% +9% 1.2 Advertising & Transactions & Media, 2% 2022 2023 O
Slide 20: Product update
Product update 20
Slide 21: LATAM real estate market opportunity
LATAM REAL ESTATE MARKET OPPORTUNITY Large primary real estate commission pools provide significant opportunity for real estate marketplaces ~1.3m X ~A$155k X 0.6% = ~A$1.2bn Annual primary real estate Current commission on Annual primary real estate market transactions in 360 Average sale price1 sa
Slide 22: Iris: overview
IRIS: OVERVIEW Iris is 360 LATAM‘s proprietary multiple listing service (MLS) platform, streamlining new development sales Problem • Developers have substantial stock of new real estate for sale however their existing sales channels alone are insufficient to fully capitalise on their inventory • Pub
Slide 23: Iris: key highlights
IRIS: KEY HIGHLIGHTS Iris continues to gain momentum following its successful roll out during 2023 Attractive model connecting real estate agents and brokers to inventory of developers, expanding the sales forces of 1 developers and providing real estate agents and brokers access to a wider pool of
Slide 24: Outlook
OUTLOOK 24
Slide 25: 2024 priorities
2024 PRIORITIES Revenue Growth Margin expansion Product Value creation for development investors Build on revenue growth Leverage successful cost Continue development and Clear focus on value creation for momentum of 2H 2023 to management program to drive launch of classifieds and investors includin
Slide 26: Additional information
Additional information 26
Slide 27: Corporate overview
CORPORATE OVERVIEW Share price performance (last 6 months) Substantial shareholders Catcha Group (Patrick Grove and Luke Elliott) 11.9% $0.65 Shaun Di Gregorio (Founder and CEO) 9.8% $0.55 Barca Global Master Fund 7.4% SmallCo Investment Manager 7.3% $0.45 Financial information $0.35 Share price (27
Slide 28: Statutory revenue by brand
STATUTORY REVENUE BY BRAND Accounting treatment 2023 2022 Growth 360 LATAM 52,118,449 45,180,239 15% InfoCasas Consolidated 21,157,192 18,023,791 17% Fincaraíz Consolidated 11,200,013 8,924,499 25% Encuentra24 Consolidated 10,963,324 9,762,049 12% Yapo Consolidated 8,797,920 8,469,900 4% MENA Market
Slide 29: Statutory EBITDA by brand
STATUTORY EBITDA BY BRAND 2023 EBITDA & margin 2022 EBITDA & margin Accounting treatment EBITDA Change (absolute terms) A$ % A$ % 360 LATAM 4,364,989 8% 540,318 1% 3,824,671 Encuentra24 Consolidated 1,686,454 15% 710,191 7% 976,263 Fincaraíz Consolidated 1,667,622 15% 881,102 10% 786,520 Yapo Consol
Slide 30: Contact us
CONTACT US PRINCIPAL OFFICE 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia www.frontierdv.com ABOUT FDV This announcement is authorised for release by the Board Frontier Digital Ventures (FDV) is a leading owner and operator of of Directors of Frontier Digital
Frontier Digital Ventures — FY2023 Earnings Presentation on 6ix