Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — Investor Presentation (November 2021)
38 slides from Frontier Digital Ventures's investor presentation, Nov 15, 2021
Slide 1: Legal restructure and updated investor presentation
ASX Code: FDV 15 November 2021 Legal restructure and updated investor presentation • FDV is intending to restructure its operating companies along geographical lines – FDV LATAM, FDV Asia and FDV MENA • Regional structure to enhance growth opportunities and support FDV at full potential • Restructur
Slide 2: The legal restructure is subject to ongoing legal, accounting and taxation advice, with more
The legal restructure is subject to ongoing legal, accounting and taxation advice, with more details to be released in due course. FDV will continue to keep shareholders informed in accordance with its continuous disclosure obligations. - ENDS - The release of this announcement was authorised by the
Slide 3: Leading Online Marketplaces in Emerging Markets
LEADING ONLINE MARKETPLACES IN EMERGING MARKETS INVESTOR PRESENTATION | 15 NOVEMBER 2021
Slide 4: Table of Contents
TABLE OF CONTENTS 3 New FDV Group Structure 5 Evolution from Classifieds to Marketplaces 11 FDV Group Financial Snapshot 16 FDV LATAM 20 FDV Asia 24 FDV MENA 28 Corporate Overview 2
Slide 5: New FDV Group Structure
NEW FDV GROUP STRUCTURE Regional structure to enhance growth opportunities and support FDV at full potential FDV Group FDV LATAM FDV Asia FDV MENA $38m (55%)1 $22m (32%)1 $9m (13%)1 1. Revenue annualised for 3Q 2021 on an FDV % share basis and does not account for expected revenue growth across the
Slide 6: Expected Benefits of Restructure
EXPECTED BENEFITS OF RESTRUCTURE Enhanced Improved Strengthened management operational regional culture and efficiencies presence accountability Increased Greater organic and Increased knowledge inorganic monetisation sharing and growth options innovation opportunities New Group structure to provide
Slide 7: Evolution from Classifieds to Marketplaces
EVOLUTION FROM CLASSIFIEDS TO MARKETPLACES
Slide 8: Evolution Towards Transactions
EVOLUTION TOWARDS TRANSACTIONS Systemic change in consumer behaviour towards purchasing higher value items online Low cost Mid cost High cost Largest consumer purchase High frequency Regular frequency Low frequency E.g. Streaming services, rideshare, E.g. Travel and accommodation Vehicles Real estat
Slide 9: Significant Upside Potential
SIGNIFICANT UPSIDE POTENTIAL Augmenting traditional advertising revenue with transaction-based revenues underpins long-term growth Traditional online classifieds Transaction-based marketplaces $ $ Advertising Advertising Buyer Seller Buyer Seller Up to Facilitate and participate in the transaction e
Slide 10: Case Study – Zameen
CASE STUDY – Zameen The 'playbook' in action – long-term equity value creation Zameen classifieds and transaction revenue The FDV playbook Zameen’s in action equity value – long-term growth equity value creation ($m, 100% basis) 32.4 2.5 Most recent equity value: 27.4 Dec 2020 Illustrative Classifie
Slide 11: Case Study – InfoCasas
CASE STUDY – InfoCasas The 'playbook' in action – pathway to successfully facilitating transactions Revenue and EBITDA Move to 100% ownership as A$000, 100% basis business matures and 8,652⁴ transaction model de-risked3 Increase ownership once ✓ Pilot new transaction Illustrative clear competitive i
Slide 12: Realising FDV's Full Potential
REALISING FDV'S FULL POTENTIAL 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 Sell down to ex
Slide 13: FDV Group Financial Snapshot
FDV GROUP FINANCIAL SNAPSHOT
Slide 14: 3Q 2021 Quarterly Highlights
3Q 2021 QUARTERLY HIGHLIGHTS Milestone quarter as FDV approaches cash flow breakeven 244% A$1.2m A$17.3m A$4.3m A$17.2m Increase in cash Record portfolio Record quarterly Standout quarterly Cash position as at receipts on pcp EBITDA¹ revenue¹ revenue from 30 September 2021 InfoCasas¹ Resulting in op
Slide 15: Approaching Cash Flow Breakeven
APPROACHING CASH FLOW BREAKEVEN Cash receipts in 3Q 2021 increased 244%, resulting in operating cash outflows of only A$0.4m Quarterly net operating cash flows (FDV % share basis) Acquisition of Fincaraíz, Acquisition Avito and Tayara of Yapo 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2
Slide 16: Ongoing Progress Towards Profitability
ONGOING PROGRESS TOWARDS PROFITABILITY 11 of the 16 operating companies reported positive EBITDA in 3Q 2021 Portfolio EBITDA margin1 (FDV % share basis) Half year Quarter 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 3Q 2021 Onset of COVID-19 8% 7% (4%) (2%) (5%) (5%) (20%)
Slide 17: Rapid Growth Trajectory
RAPID GROWTH TRAJECTORY Continued strong performance underpinned by organic growth and strategic acquisitions Group revenue since IPO Group revenue since IPO (A$m, 100% basis) (A$m, FDV % share basis) 62.6¹ 34.6¹ 50.3 Illustrative 24.2 17.3 Illustrative Onset of COVID-19 31.3 based on based on 3Q 20
Slide 18: FDV LATAM
DIGITAL VENTURES e FDV LATAM
Slide 19: FDV LATAM Overview
FDV LATAM OVERVIEW Highly strategic footprint across 12 key markets, with strong property revenues FDV ownership (%) Total population across FDV LATAM 100% 177m markets¹ 26% $1.2tn Total GDP across FDV LATAM markets² 100% Total mobile connections across FDV 206m LATAM markets¹ 100% Total sessions ac
Slide 20: FDV LATAM Highlights
FDV LATAM HIGHLIGHTS InfoCasas provides a successful transaction model blueprint for the region • Market leadership across all countries, and an emerging position in Peru, an Market leadership economy larger than all of InfoCasas' three other markets • 100% ownership of InfoCasas, Fincaraíz and Yapo
Slide 21: FDV LATAM Financial Performance
FDV LATAM FINANCIAL PERFORMANCE Accelerated revenue growth following strategic acquisitions and increase in InfoCasas ownership Revenue (100% basis) Revenue (FDV % share basis) (A$m) 22.4¹ (A$m) 19.1¹ Illustrative 15.8 11.2 based on Illustrative 3Q 2021 9.5 based on 3Q 2021 10.8 8.8 5.2 3Q 2021 11.2
Slide 22: FDV Asia
DIGITAL VENT
Slide 23: FDV Asia Overview
FDV ASIA OVERVIEW Significant population across large emerging economies supports long-term growth FDV ownership (%) 30% Total population across FDV Asia 409m markets¹ 37% 65% $777bn Total GDP across FDV Asia markets² 53% Total mobile connections across FDV 425m Asia markets¹ 56% Total sessions acro
Slide 24: FDV Asia Highlights
FDV ASIA HIGHLIGHTS Classifieds leadership provides the foundation for the transaction model • Market leadership across all 4 markets, with Hoppler the leading property Market leadership transaction portal in Manila • Established footprint in dynamic region with potential to consolidate ownership Op
Slide 25: FDV Asia Financial Performance
FDV ASIA FINANCIAL PERFORMANCE Continued revenue growth with standout performance from property and auto businesses in Pakistan Revenue (100% basis) Revenue (FDV % share basis) (A$m) (A$m) 35.7¹ 30.4 Illustrative 11.2¹ 25.2 17.9 based on 3Q 2021 9.5 Illustrative 21.4 based on 8.1 5.6 3Q 2021 7.1 17.
Slide 26: FDV MENA
DIGITAL VENTURES FDV MENA = me a
Slide 27: FDV MENA Overview
FDV MENA OVERVIEW Strategic investment in select, fast emerging markets FDV ownership (%) Total population across FDV MENA 100% 100% 289m markets¹ 100% $700bn Total GDP across FDV MENA markets² Total mobile connections across FDV 291m MENA markets¹ 69% 39% Total sessions across FDV MENA Vertical Rev
Slide 28: FDV MENA Highlights
FDV MENA HIGHLIGHTS Building value and momentum in region as it shifts towards facilitating transactions • Market leadership across all 4 markets, with two highly complementary Market leadership businesses in Morocco across the property, auto and general verticals • Avito and Moteur teams co-locatin
Slide 29: FDV MENA Financial Performance
FDV MENA FINANCIAL PERFORMANCE Significant revenue growth following acquisitions of Avito and Tayara Revenue (100% basis) Revenue (FDV % share basis) (A$m) (A$m) 4.6¹ 4.4¹ 4.1 3.9 Illustrative Illustrative 2.3 based on 2.2 based on 3Q 2021 3Q 2021 2.0 1.8 2.3 3Q 2021 3Q 2021 2.2 (actual) (actual) 0.
Slide 30: Corporate Overview
CORPORATE OVERVIEW
Slide 31: A Global Leader
A GLOBAL LEADER Our mission is to become the leading global operator of online marketplaces in emerging markets A$237B A$30B A$0.6B Market capitalisation Market capitalisation Market capitalisation (AMS:PRX) (OL:ADE) (ASX:FDV) Global portfolio of leading Global portfolio of online Global portfolio o
Slide 32: 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
Slide 33: Corporate Overview
CORPORATE OVERVIEW FDV has a strong balance sheet, and its shares are tightly held Share price performance since IPO Substantial shareholders $1.90 Catcha Group (Patrick Grove and Luke Elliott) 13.1% Shaun Di Gregorio (Founder and CEO) 10.9% $1.70 Barca Global Master Fund 7.4% $1.50 SmallCo Investme
Slide 34: S&P/ASX All Technology Index Inclusion
S&P/ASX ALL TECHNOLOGY INDEX INCLUSION All Tech index inclusion an important step on the pathway to the S&P/ASX 300 Index Significant benefits to index inclusion Interactive Media & Services constituents Ticker Market Cap Provides access to the fastest growing sector on the ASX through a single inde
Slide 35: Committed to ESG Values
COMMITTED TO ESG VALUES Continued focus on ESG objectives to build a strong corporate culture Strong focus on gender diversity Diversity policy sets out minimum expectations to achieve greater workplace diversity. Currently, women make up 42% of management positions and 39% of senior executive roles
Slide 36: Investment Highlights
INVESTMENT HIGHLIGHTS Rapid growth trajectory 1 Group revenue annualising at A$69m, underpinned by strong organic growth and highly strategic acquisitions Emerging regions, provides 3 unique exposure to rapidly developing markets 2 New FDV Group structure New regional structure to unlock significant
Slide 37: Contact Us
HERE CONTACT US Shaun Di Gregorio Founder and CEO P: +60 3 2700 1591 E: shaundig@frontierdv.com VISIT US frontierdv.com Follow us on social media PRINCIPAL OFFICE 39-8 The Boulevard Mid Valley City, Lingkaran Syed Putra Kuala Lumpur, Malaysia
Slide 38: 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
Frontier Digital Ventures — Investor Presentation (November 2021) on 6ix