Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — H1 2021 Earnings Presentation
24 slides from Frontier Digital Ventures's earnings presentation, Aug 25, 2021
Slide 1: 2021 Half Year Results Presentation
rsonal use only LEADING ONLINE MARKETPLACES IN EMERGING MARKETS 2021 HALF YEAR RESULTS PRESENTATION | 25 AUGUST 2021
Slide 2: FDV at a glance
FDV at a glance #1 property portal rsonal use only #1 property portal #1 property portal Leading general marketplace ― Operator of 16 market leading online marketplaces Pakistan Uruguay, Paraguay and Colombia across Central America Bolivia across 21 high growth emerging markets ― 2Q 2021 annualised
Slide 3: A Global Leader
A GLOBAL LEADER Our mission is to become the leading global operator of online marketplaces in emerging markets rsonal use only A$235B A$18B A$0.5B Market capitalisation Market capitalisation Market capitalisation (AMS:PRX) (OL:ADE) (ASX:FDV) Global portfolio of leading Global portfolio of online Gl
Slide 4: Record results and execution of strategy
RECORD RESULTS AND EXECUTION OF STRATEGY rsonal use only SECTION 1 • Record monthly revenue in July as momentum builds in FY21, highlighting FDV’s attractive long-term growth profile Trading update • Proven track record of unlocking the value of classifieds leadership as the operating companies tran
Slide 5: Trading Update
rsonal use only TRADING UPDATE
Slide 6: July 2021 Trading Update
JULY 2021 TRADING UPDATE Record portfolio revenue in July builds on the strong momentum in 1H FY21 Portfolio highlights Portfolio monthly revenue rsonal use only InfoCasas (A$m, 100% basis) Record monthly revenue in July as Record revenue in July of A$1.2m (100% basis), up 23% on June momentum 2021
Slide 7: Growing Transactional Revenues
GROWING TRANSACTIONAL REVENUES Unlocking value of classifieds leadership as the portals transition to transaction-based marketplaces Portfolio transaction revenue as a % of total revenue rsonal use only (100% basis) Significant opportunity to transition Proven track record of unlocking transaction r
Slide 8: 1H FY21 Results
rsonal use only 1H FY21 RESULTS
Slide 9: Rapid Growth Trajectory
RAPID GROWTH TRAJECTORY Continued strong performance underpinned by organic growth and strategic acquisitions Portfolio revenue since IPO Portfolio revenue since IPO rsonal use only (A$m, 100% basis) (A$m, FDV % share basis) 50.3 24.2 31.0 36.0 31.0 14.0 27.1 11.8 10.4 9.8 22.4 17.9 7.8 6.2 14.5 5.0
Slide 10: Ongoing Progress Towards Profitability
ONGOING PROGRESS TOWARDS PROFITABILITY Demonstrates FDV’s proven ability to drive sustainable growth at the operating company level Portfolio EBITDA margin1 rsonal use only (FDV% share basis) 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 8% (4%) (2%) (5%) (5%) (19%) (22%) (32%) Equivalent like-f
Slide 11: 1H 2021 Revenue Breakdown by Operating Company
1H 2021 REVENUE BREAKDOWN BY OPERATING COMPANY 1H 2021 revenue was up 148% on pcp (FDV basis) A$ (100% basis) A$ (FDV % share basis) rsonal use only FDV Operating company interest Classifieds type 1H 2021 Revenue 1H 2020 Revenue Growth 1H 2021 Revenue 1H 2020 Revenue Growth Zameen 30% Property 27,44
Slide 12: CEO quote on 1H 2021 results
“ rsonal use only We are delighted to report the ongoing growth of the portfolio across 1H 2021, with record half-year revenue on an FDV % share basis. The significant appreciation of the Australian dollar against all local currencies masked an even stronger performance. Momentum continues to build
Slide 13: Operational Update
rsonal use only OPERATIONAL UPDATE
Slide 14: Expanding Global Footprint
EXPANDING GLOBAL FOOTPRINT Leading online marketplace portals across high growth emerging markets DEVELOPING ASIA CENTRAL & SOUTH AMERICA MENA rsonal use only Recent acquisition Recent increased investment 14
Slide 15: Risk-Return Trade-off Optimisation
RISK-RETURN TRADE-OFF OPTIMISATION Diversification across key regions and verticals optimises risk-return profile rsonal use only REVENUE BY GEOGRAPHY REVENUE BY VERTICAL1 REVENUE BY BUSINESS (1H 2021, FDV % share basis) (1H 2021, FDV % share basis) (1H 2021, FDV % share basis) MENA Auto Other 16% 1
Slide 16: Portfolio Optimisation Activities
PORTFOLIO OPTIMISATION ACTIVITIES Continued optimisation of FDV’s portfolio over the half-year to drive long-term shareholder value rsonal use only ✓ Acquired remaining 43.7% interest in Moteur to move to 100% ownership ✓ Following acquisition of Avito, consolidates FDV‘s ownership of two highly com
Slide 17: Strategy Recap
rsonal use only STRATEGY RECAP
Slide 18: Proven Business Model
PROVEN BUSINESS MODEL Focused on acquiring or partnering with companies to unlock significant transactional revenue opportunities rsonal use only FDV PROVIDES VALUABLE STRATEGIC OVERSIGHT AND SUPPORT Identify Strengthen Increase Move closer to opportunities market ownership the transaction leadershi
Slide 19: Significant Upside Potential
SIGNIFICANT UPSIDE POTENTIAL Development of transactional marketplace platforms unlocks significant long term value Traditional online classifieds Transaction-based marketplaces rsonal use only $ $ Advertising Advertising Buyer $ Sales commissions Seller Buyer Seller $ Financing Marketing of $ new p
Slide 20: Realising the Portfolio's Full Potential
REALISING THE PORTFOLIO’S FULL POTENTIAL Unparalleled online classified expertise focused on sustainable growth rsonal use only Sell down to existing Current focus shareholders Create additional equity value through active management Sale to financial investor Establish and consolidate Assess moneti
Slide 21: 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 22: Corporate Overview
CORPORATE OVERVIEW FDV has a strong balance sheet, and its shares are tightly held Share price performance since IPO Substantial shareholders rsonal use only $1.90 Catcha Group (Patrick Grove and Luke Elliott) 13.1% Shaun Di Gregorio (Founder and CEO) 10.9% $1.70 Perennial Value Management 7.6% $1.5
Slide 23: Appendix
FRO WHan DIGITAL VENTURES APPENDIX
Slide 24: 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 Zameen Equity accounted InfoCasas Consolidate
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