Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — H1 2018 Earnings Presentation
30 slides from Frontier Digital Ventures's earnings presentation, Aug 28, 2018
Slide 1: 1H 2018 Results Presentation
ASX Code: FDV 28 August 2018 1H 2018 Results Presentation Frontier Digital Ventures Limited (“FDV”, ASX: FDV) is pleased to release its financial results for the 6 months ended 30 June 2018 (“1H 2018”) along with an updated presentation to be discussed at a series of shareholder and new investor mee
Slide 2: Underlying vs Statutory Accounting
NOTE: UNDERLYING VS STATUTORY ACCOUNTING The financial statements released alongside this announcement reports the statutory financial accounts for the 6 month period ended 30 June 2018. Due to the nature of Frontier’s investment portfolio there is a difference between the economic interest in portf
Slide 3: 1H 2018 Results Presentation
1H 2018 Results Presentation AUGUST 2018 FRONTIER DIGITAL VENTURES
Slide 4: Contents
Contents 1 2 3 4 5 1H 2018 Who is Why online Why frontier The FDV results FDV? classifieds and emerging process markets FRONTIER DIGITAL VENTURES 2
Slide 5: 1H 2018 highlights
1H 2018 highlights A$18.2m revenue 3 companies on the A$14.4m (100% basis) +59% on 1H 2017 cusp of profitability capital raising Portfolio focusing on Posting positive EBITDA in at Fully underwitten capital monetisation least three months raising completed Continued strong operational growth +18% le
Slide 6: Strong revenue and EBITDA growth
Strong revenue and EBITDA growth Portfolio revenue 2.8x growth Revenue and EBITDA (A$m, 100% basis unaudited) (A$m, FDV equity basis unaudited) A$40m revenue EBITDA Revenue Forecast full year 2018 6.3 5.3 18.2 3.5 15.2 2.4 1.5 11.5 8.7 (1.9) (1.8) (2.0) (2.0) (1.6) 6.4 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H
Slide 7: Consistent and strong revenue growth across the portfolio in 1H 2018
Consistent and strong revenue growth across the portfolio in 1H 20181 FDV 1H 2017 1H 2018 ownership Revenue Revenue Growth (%) A$ (100% basis) A$ (100% basis) (%) Consolidated investments2 AutoDeal 33% 411,846 478,076 +16% carsDB 76% 71,058 222,248 +213% Encuentra24 42% 3,298,524 3,650,500 +11% Hopp
Slide 8: 1H 2018 results
1 2 3 4 5 1H 2018 Who is Why online Why frontier The FDV results FDV? classifieds and emerging process markets FRONTIER DIGITAL VENTURES 6
Slide 9: Who is FDV?
Who is FDV? − Operator of market leading online classifieds websites in frontier and emerging markets − Portfolio revenues have tripled since IPO in August 2016 to A$18.2m in 1H 2018 with a CAGR of 69% − Strong background and experience with the best ASX online classifieds stories − FDV’s business m
Slide 10: Operator of market leading online classifieds businesses
Operator of market leading online classifieds businesses in Developing Asia (ex China), Central & South America and MENA 1 INVESTS 2 OPERATES 3 PARTNERS 4 UNLOCKS Invests in companies Owns a portfolio of Operates businesses in Adds expertise to that can gain the most market leading online partnershi
Slide 11: FDV's unique business model
FDV’s unique business model Identify Structured Optimise in opportunities investment partnership FDV identifies a high quality local FDV invests with highly FDV optimises the business in entrepreneur and market structured, valuable investment partnership with the opportunity terms entrepreneur Enter
Slide 12: Strong background and experience with the best ASX online classifieds stories
Strong background and experience with the best ASX online classifieds stories • One of the top global online classifieds executives with a track record of success • Former CEO of iPropertyGroup (ASX: IPP) and General Manager at REA Group • Spearheaded the transformation of iProperty Group from a US$
Slide 13: FDV's business model is focused on unlocking revenue streams
FDV’s business model is focused on unlocking v2.0 online classified revenue streams on the way to 3 Unlock v2.0 classifieds revenue streams closer to the transaction the transaction Requires strong revenue base and clear market leadership Build base of traditional online 2 classifieds revenue focuse
Slide 14: Portfolio progression to profitability
Portfolio progression to profitability 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 profitability timing across • Approximately half of the operating companies are
Slide 15: Why online classifieds
1 2 3 4 5 1H 2018 Who is Why online Why frontier The FDV results FDV? classifieds and emerging process markets FRONTIER DIGITAL VENTURES 13
Slide 16: Online classifieds have been one of the most successful online business models
Online classifieds have been one of the most successful online The online classifieds business model has been central to a number of the business models world’s valuable internet companies Market capitalisation Now... 10 years ago... #1 property portal in Australia A$12bn <A$1bn #1 property portal i
Slide 17: Online classifieds 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 … factors Fast growing High internet GDP per capita penetration FDV’s portfolio of online classifieds businesses covers: 900m+ popul
Slide 18: Why frontier and emerging markets
1 2 3 4 5 1H 2018 Who is Why online Why frontier The FDV results FDV? classifieds and emerging process markets FRONTIER DIGITAL VENTURES 16
Slide 19: Potential for a significant value re-rating if successful
Frontier and emerging markets ...with potential for a present a tremendous opportunity to significant value re-rating if build online classifieds businesses with a focus on getting closer to the successful ...with potential for a significant value re- transaction rating if successful at achieving an
Slide 20: The FDV process
1 2 3 4 5 1H 2018 Who is Why online Why frontier The FDV results FDV? classifieds and emerging process markets FRONTIER DIGITAL VENTURES 18
Slide 21: The FDV optimisation process
The FDV optimisation process 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 progress towards reportin
Slide 22: Zameen blueprint: demonstrated value creation
Zameen blueprint: demonstrated value creation 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 Company value increase of 55x
Slide 23: Total portfolio wide growth over key metrics
Total portfolio wide growth over key metrics 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 1H 2018 across the portfolio with a clea
Slide 24: Progress towards monetisation opportunities
Progress towards monetisation opportunities 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 shareholders $ Trade sale to Op
Slide 25: Appendix
Appendix FRONTIER DIGITAL VENTURES 23
Slide 26: Our portfolio
Our portfolio • Zameen.com is the #1 property portal in Pakistan and was FDV’s first investment, targeting a market of 200m • Latest funding around in Zameen completed at a pre-money valuation of US$220m • Zameen has extensive reach across the country and leads its competitors in all key operating m
Slide 27: Our portfolio (cont.)
Our portfolio (cont.) • Infocasas is the #1 property online classifieds platform in Uruguay and Paraguay and a leading operator in Bolivia • Highly strategic investment in the South American online classifieds market into less competitive geographies • Infocasas continues to demonstrate strong reven
Slide 28: Our portfolio (cont.)
Our portfolio (cont.) • PropertyPro.ng (formerly ToLet.com.ng) is the leading property portal in oil-rich Nigeria, now Africa’s largest economy and population, standing at a staggering 175 million property-hungry Nigerians • The portal was first launched in 2013 by four Nigerians, Fikayo Ogundipe, D
Slide 29: Our portfolio (cont.)
Our portfolio (cont.) • MeQasa.com is the #1 property portal in Ghana, founded in 2013 by Kelvin Nyame and Rashad Seini • MeQasa.com has recently its former competitor Jumia House Ghana, which is expected to further extend its market leadership 86% FDV interest • Ghana is a stand out market in the r
Slide 30: Contact details
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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