Frontier Digital Ventures Ltd. · ASX:FDV

Frontier Digital Ventures — FY2022 Earnings Presentation

35 slides from Frontier Digital Ventures's earnings presentation, Feb 28, 2023

  1. Slide 1: Leading Online Marketplaces in Emerging Markets

    LEADING ONLINE MARKETPLACES IN EMERGING MARKETS 2022 FULL YEAR RESULTS PRESENTATION | 28 FEBRUARY 2023

  2. Slide 2: Market Leading Businesses

    MARKET LEADING BUSINESSES FDV Group structured across three key geographic regions to support FDV at full potential FDV Group FDV LATAM FDV Asia FDV MENA #1 property portal Pakistan #1 auto portal Pakistan #1 property portal Uruguay, #1 property and auto portal #1 general marketplace #1 general mark

  3. Slide 3: Record Results and Execution of Strategy

    RECORD RESULTS AND EXECUTION OF STRATEGY ▪ Updated FY22 portfolio revenue and EBITDA results, relative to unaudited figures provided in the Quarterly Activity Report, which primarily relate to a A$550k improvement in Avito’s FY22 EBITDA SECTION 1 ▪ EBITDA improvement for FDV LATAM, FDV Asia and FDV

  4. Slide 4: Portfolio & Statutory Results

    PORTFOLIO & STATUTORY RESULTS

  5. Slide 5: FY22 Highlights

    FY22 HIGHLIGHTS A$6.5m +A$4.6m EBITDA improvements +8% +5% Record full year portfolio EBITDA1 on FDV All regions increased EBITDA between FY21 and Portfolio EBITDA margin, up % share basis, excluding one-off FY22, with FDV LATAM, FDV Asia and FDV MENA from +3% achieved in FY21 on restructuring expen

  6. Slide 6: Standout EBITDA Performance

    STANDOUT EBITDA PERFORMANCE EBITDA improvements for all regions supported by cost optimisation initiatives and strong top-line growth Portfolio EBITDA since IPO Highlights (A$m, FDV % share basis) FDV LATAM • A$2.1m EBITDA in FY22 with optimised cost bases providing strong FY16 FY17 FY18 FY19 FY20 F

  7. Slide 7: Portfolio EBITDA Margin

    PORTFOLIO EBITDA MARGIN Demonstrates FDV’s proven ability to drive sustainable growth at the operating company level Portfolio EBITDA margin uplift Onset of COVID-19 (FDV % share basis) FY16 FY17 FY18 FY19 FY20 FY21 FY22 8%1 3% 3% (4%) (19%) (37%) 11 of 15 operating companies improved EBITDA in FY22

  8. Slide 8: FY22 EBITDA Breakdown by Operating Company

    FY22 EBITDA BREAKDOWN BY OPERATING COMPANY FY22 portfolio EBITDA of A$6.5m, a significant increase of A$4.6m on FY21 FDV FY22 FY21 ownership EBITDA1 EBITDA EBITDA (%) A$ (FDV % share basis) A$ (FDV % share basis) Improvement FDV LATAM 2,112,597 1,132,384 980,213 Fincaraiz 100% 976,107 551,452 424,65

  9. Slide 9: Growth on a Sustainable Basis

    GROWTH ON A SUSTAINABLE BASIS Continued sustainable revenue growth despite challenging global economic conditions in FY22 Portfolio revenue since IPO (100% share basis) Portfolio revenue since IPO (FDV % share basis) (A$m) (A$m) 145.1 82.3 FDV 114.3 45.2 LATAM 60.0 FDV Onset of COVID-19 45.2 LATAM 6

  10. Slide 10: FY22 Revenue Breakdown by Operating Company

    FY22 REVENUE BREAKDOWN BY OPERATING COMPANY Record portfolio revenue of A$82.3m in FY22 on an FDV % share basis, increasing 37% on FY21 A$ (100% basis) A$ (FDV % share basis) FDV Accounting Operating company interest treatment FY22 Revenue FY21 Revenue Growth FY22 Revenue FY21 Revenue Growth FDV LAT

  11. Slide 11: FY22 Statutory Results

    FY22 STATUTORY RESULTS Maiden positive Group operating EBITDA reflecting financial discipline and emphasis on profitability 2022 2021 Change 1. Group operating revenue: $85.0m revenue from continuing operations in FY22, driven by organic growth in FDV LATAM A$000 A$000 A$000 % (17%) and FDV Asia (35

  12. Slide 12: FDV LATAM Strategy Update

    FDV LATAM STRATEGY UPDATE

  13. Slide 13: FDV LATAM

    FDV LATAM Market leading positions across 12 highly attractive markets, FDV ownership (%) 1 with long-term structural tailwinds Strong local management team in place with proven track record 100% 2 in building leading classifieds marketplaces 100% Attractive financial profile with record performance

  14. Slide 14: Overview

    OVERVIEW Established market leading platforms in highly attractive markets supported by long-term structural tailwinds #1 property portal Uruguay, #1 property marketplace in Leading general marketplace in #1 property and auto portal in Chile Paraguay and Bolivia Colombia Central America 61.0x 1.03x

  15. Slide 15: Local Management Team

    LOCAL MANAGEMENT TEAM Strong management team with proven track record of building classifieds marketplaces in LATAM Operational structure Value creation plan progress • Previously Co-Founder and CEO of InfoCasas for 10+ years • Sharing of InfoCasas’ proprietary transaction technology and IP • Expand

  16. Slide 16: Financial Profile

    FINANCIAL PROFILE Record financial performance in FY22 with attractive bias to high value property vertical Revenue and EBITDA Revenue by vertical (A$m, FDV % share basis) General 11% Auto 8% 45.2 Bias towards property vertical provides larger revenue opportunity given the value of transactions, 30.

  17. Slide 17: Case Study

    CASE STUDY Sustainable growth underpinned by strong core classifieds business augmented by tech-enabled transactions InfoCasas revenue and transactions volume The FDV playbook Proprietary in action –technology transaction long-term equity value creation (A$m, 100% basis) Refinement of transaction re

  18. Slide 18: Long-Term Value Creation

    LONG-TERM VALUE CREATION Targeting potential NASDAQ listing underpinned by value creation plan and proven growth strategy FDV LATAM medium-term revenue ambition Strategy Consolidation of key operational and corporate functions Consolidation of FDV LATAM’s position as a leading classifieds and US$100

  19. Slide 19: FDV Asia & MENA

    FDV ASIA & MENA

  20. Slide 20: FDV Asia

    FDV ASIA Strong revenue momentum and building operating leverage heading into FY23 Revenue and EBITDA Highlights (A$m, FDV % share basis) • FDV Asia recorded EBITDA of A$4.6m and revenue of A$28.6m in FY22, increasing 62% and 36% on FY21 respectively (FDV % share 28.6 basis) Onset of • FDV Asia has

  21. Slide 21: FDV MENA

    FDV MENA Cost optimisation initiatives in FY22 provides platform for sustainable growth in FY23 and beyond Revenue and EBITDA Highlights (A$m, FDV % share basis) • FDV MENA recorded EBITDA of A$(0.2)m in FY22, a significant 8.5 8.5 improvement relative to A$(2.1)m in FY21 (FDV % share basis) • Opera

  22. Slide 22: Strategy Overview

    STRATEGY OVERVIEW

  23. Slide 23: Proven Business Model

    PROVEN BUSINESS MODEL Unlocking the long-term value of leading classifieds marketplaces FDV PROVIDES VALUABLE STRATEGIC OVERSIGHT AND SUPPORT Identify Strengthen Grow core Move closer to opportunities market classifieds the transaction leadership business Track and identify leading Build base of tra

  24. Slide 24: Evolution of Core Classifieds Model

    EVOLUTION OF CORE CLASSIFIEDS MODEL Expanding the traditional core classifieds model to service buyers and sellers through to the transaction Search Discover Marketing Inspections Financing Transaction Traditional core ✓ Listings on portals attract buyers and the portals help match them to sellers O

  25. Slide 25: Significant Upside Potential

    SIGNIFICANT UPSIDE POTENTIAL Capturing significant revenue opportunity by turning low value leads into high value transaction revenue Auto revenue opportunity Property revenue opportunity (A$) (A$) 8,428 8,298 734 172 11 4 0.1 1 Classifieds revenue per lead Transactions revenue per transaction Class

  26. Slide 26: Monetisation Opportunities

    MONETISATION OPPORTUNITIES Leveraging marketplaces to drive long-term equity value creation Monetisation opportunities (not exhaustive) Value catalysts $ FDV continues to explore monetisation options to Market intermediary maximise value for shareholders facilitating transactions IPO on relevant glo

  27. Slide 27: FY23 Strategic Priorities

    FY23 STRATEGIC PRIORITIES Drive operating company profitability Grow operating metrics Execute towards key value catalysts • All operating companies EBITDA positive • Grow key classifieds operating metrics, including • Progress FDV LATAM value creation plan toward • Consistent positive operating cas

  28. Slide 28: Additional Information

    ADDITIONAL INFORMATION

  29. Slide 29: Strong Track Record of Long-Term Value Creation

    STRONG TRACK RECORD OF LONG-TERM VALUE CREATION • 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 from a US$15m sm

  30. Slide 30: Corporate Overview

    CORPORATE OVERVIEW FDV has a strong balance sheet, and its shares are tightly held Share price performance (last 6 months) Substantial shareholders $1.00 Catcha Group (Patrick Grove and Luke Elliott) 11.9% $0.95 Shaun Di Gregorio (Founder and CEO) 9.8% $0.90 Barca Global Master Fund 7.4% $0.85 Small

  31. Slide 31: Financial Profiles

    FINANCIAL PROFILES Annual revenue by business since IPO (100% basis) FDV FY20 (A$) ownership FY22 (A$) FY21 (A$) COVID Impacted FY19 (A$) FY18 (A$) FY17 (A$) FY16 (A$) FDV LATAM 45,180,374 38,548,887 14,038,678 14,098,242 10,286,618 7,973,832 5,840,669 InfoCasas 100% 18,023,791 13,626,840 5,935,702

  32. Slide 32: Financial Profiles (cont.)

    FINANCIAL PROFILES (cont.) Annual EBITDA by business since IPO (100% basis) FDV FY20 (A$) ownership FY221 (A$) FY21 (A$) COVID Impacted FY19 (A$) FY18 (A$) FY17 (A$) FY16 (A$) FDV LATAM 2,112,597 1,216,688 802,644 148,615 (1,014,886) (540,788) (1,830,518) Fincaraíz 100% 976,107 551,452 106,198 - - -

  33. Slide 33: Statutory Accounts

    STATUTORY ACCOUNTS FDV’s current portfolio contains 13 investments which are accounted for on a consolidated basis and 2 investments which are reported as “associates” under the equity method AASB128 Operating company Accounting treatment Zameen Equity accounted InfoCasas Consolidated Fincaraíz Cons

  34. Slide 34: Contact Us

    CONTACT US COMPANY Shaun Di Gregorio 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 www.frontierdv.co

  35. Slide 35: 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 summary form it is not intended to be complete. Independent advice should be sought by investors or potential investors. The material doe

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