Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — Bell Potter Emerging Leaders Conference 2018
20 slides from Frontier Digital Ventures's conference presentation, Oct 25, 2018
Slide 1: Bell Potter Emerging Leaders Conference Presentation
ASX Code: FDV For personal use only 25 October 2018 Bell Potter Emerging Leaders Conference Presentation Frontier Digital Ventures (ASX: FDV) is pleased to announce that its CEO Shaun Di Gregorio will be presenting at the Bell Potter Emerging Leaders Conference at 11:00am (Sydney time) on Thursday 2
Slide 2: Online Classifieds in Frontier and Emerging Markets
For personal use only ONLINE CLASSIFIEDS IN FRONTIER AND EMERGING MARKETS BELL POTTER EMERGING LEADERS CONFERENCE | 25 OCTOBER 2018 FRONTIER DIGITAL VENTURES
Slide 3: Contents
Contents For personal use only 1 2 3 Why frontier Who is Why online and emerging FDV? classifieds? markets? FRONTIER DIGITAL VENTURES 2
Slide 4: Who is FDV?
Who is FDV? For personal use only − Operator of market leading online classifieds websites in frontier and emerging markets − Portfolio revenues have tripled since IPO in August 2016 to A$18.2m in 1H 2018 with a CAGR of 69% − Strong background and experience with the best ASX online classifieds stor
Slide 5: FDV's unique business model
FDV’s unique business model For personal use only Identify Structured Optimise in opportunities investment partnership FDV identifies a high quality local FDV invests with highly FDV optimises the business in entrepreneur and market structured, valuable investment partnership with the opportunity te
Slide 6: Operator of market leading online classifieds businesses in developing markets
Operator of market leading online classifieds businesses in Developing Asia (ex China), Central & South America and MENA For personal use only 1 INVESTS 2 OPERATES 3 PARTNERS 4 UNLOCKS Invests in companies Owns a portfolio of Operates businesses in Adds expertise to that can gain the most market lea
Slide 7: Leading management team with strong online classifieds background
Leading management team with a strong background and experience with some of the best ASX online classifieds stories For personal use only • One of the top online classifieds executives in Australasia with a track record of success • Former CEO of iPropertyGroup (ASX: IPP) and General Manager at REA
Slide 8: Increasing internet penetration represents a large monetisation opportunity
Increasing internet penetration rates in emerging markets represents a large monetisation opportunity for FDV For personal use only Quarterly revenue (A$m, 100% basis, pro-forma unaudited) Number of Monthly Page Visits (millions) 50 19 2.8x Growth 15 12 25 9 20 6 13 1H16 2H16 1H17 2H17 1H18 FDV REA
Slide 9: Portfolio progression to profitability
Portfolio progression to profitability For personal use only Based on current expectations, 3 operating companies are expected to begin to trade profitably by the end of CY2018 and 6 more companies by the end of CY2019 Current expectation of cash flow breakeven timing • Approximately half of the ope
Slide 10: Why online classifieds?
For personal use only 1 2 3 Why frontier Who is Why online and emerging FDV? classifieds? markets? FRONTIER DIGITAL VENTURES 9
Slide 11: Online classifieds have been one of the most successful online business models
Online classifieds have been one of the most The online classifieds business model For personal use only successful online has been central to a number of the world’s valuable internet companies business models Market capitalisation Now... 10 years ago... #1 property portal in Australia A$12bn <A$1b
Slide 12: Classifieds businesses have significant leverage to population and economic growth
Online classifieds businesses have significant FDV has focused its leverage to both population and economic portfolio on markets that growth factors optimise these key For personal use only … factors Fast growing High internet GDP per capita penetration FDV’s portfolio of online classifieds business
Slide 13: Unlocking ancillary revenue opportunities beyond traditional advertising
Unlocking ancillary revenue opportunities outside of the traditional online advertising model across the FDV portfolio For personal use only The PAKWHEELS Example Revenue Streams Launch Date Statistic 1 Continued optimisation of Core Listing / product through pricing Advertising Revenue increases et
Slide 14: Why frontier and emerging markets?
For personal use only 1 2 3 Who is Why online Why frontier FDV? classifieds? and emerging markets? FRONTIER DIGITAL VENTURES 13
Slide 15: Frontier and emerging markets present a unique opportunity
Frontier and emerging markets ...with potential for a present a unique opportunity to build significant value re-rating if For personal use only online classifieds businesses with a focus on getting closer to the successful ...with potential for a significant value re- transaction rating if successf
Slide 16: The FDV optimisation process
The FDV optimisation process For personal use only Review markets Find opportunities Invest using structured terms Apply FDV optimisation process Optimise finances Establish targets FDV provides additional capital FDV establishes operational reporting and optimises the monthly systems and tracks pro
Slide 17: Zameen Case Study: Demonstrated value creation
Zameen Case Study: Demonstrated value creation For personal use only FDV’s first investment, Zameen, has already increased in total equity value by more than 55x since the initial investment in March 2014 (30% stake now worth US$66m) Growth in Zameen equity value Contribution to FDV portfolio Compan
Slide 18: Consistently generated portfolio wide growth over key metrics
Consistently generated portfolio wide growth over key metrics For personal use only Advertisers (#) Total sessions (m) 180,224 158 155,157 160,632 +147% 140 129 +65% 124,818 104 96 73,045 Strong growth in key operating metrics 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 1H 2016 2H 2016 1H 2017 2H 2017 1
Slide 19: Progress towards monetisation opportunities
Progress towards monetisation opportunities For personal use only Sell down to existing shareholders Establish and Continue to add Assess consolidate value across the monetisation Sale to financial investor market leadership portfolio opportunities Near complete Ongoing Tranche sale to new sharehold
Slide 20: 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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