Love Group Ltd · ASX:LVE
Love — Investor Presentation (November 2017)
24 slides from Love's investor presentation, Nov 30, 2017
Slide 1: Investor Presentation
Investor Presentation ASX: LVE November 2017 Our mission: Help singles find love
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Love Group Global Ltd. Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below. None of Love Group Global Ltd. and/or its subsidiaries or their respective directors, officer
Slide 3: A Global Dating Platform
A Global Dating Platform ONLINE DATING PREMIUM MATCHMAKING
Slide 4: Experienced Management Team with Passion
Experienced Management Team with Passion Tony Harris Michael Ye Leigh Kelson Non-Executive Founder and Non-Executive Chairman Chief Executive Officer Director Wendy Hui Christoph Aut Willem Mens Chief Financial Officer Vice President, Vice President, Engineering Marketing
Slide 5: Corporate Snapshot
Corporate Snapshot As of November 24, 2017 (unless stated otherwise) Capital structure (ASX:DTX) Shareholder mix Market capitalisation A$3.7m Enterprise value A$2.3m 1 17% Shares on issue 41.0m Performance shares 2 8.4m 21% 62% Options 3 3.45m Cash balance as of 30 Sept 2017 A$1.4m Board and senior
Slide 6: Distinctive Brand Positioning
Distinctive Brand Positioning Clear brand positioning to effectively capture distinct market segments
Slide 7: Large and Growing Addressable Market
Large and Growing Addressable Market Rapidly growing number of singles online1 1 Research Now, United Nations, World Bank, EIU 2 Research Now 2015: All adults in North America, Western Europe and other select countries around the world who are not in committed relationships and who have access to th
Slide 8: Matchmaking is Largest Market Segment in Asia
Matchmaking is Largest Market Segment in Asia Global dating services market in 2017 (A$ millions)1 1 IBISWorld (US data), iResearch (China data), Statista (rest of world data), company estimates
Slide 9: Our Target Customer Segments
Our Target Customer Segments
Slide 10: Strong Growth with Diversified Revenue Mix
Strong Growth with Diversified Revenue Mix Quarterly revenue by product ($ ’000) Quarterly revenue by geography ($ ’000) 1 Data for 1Q FY18 is based on unaudited management accounts
Slide 11: Improving Margins from Operating Leverage
Improving Margins from Operating Leverage Quarterly operating expenses as % of revenue 1 Data for 1Q FY18 is based on unaudited management account 2 Quarterly EBITDA based on management accounts 3 The revenue range and EBITDA margin is indicative only and should not be viewed as a forecast
Slide 12: Attractive Valuation Relative to Global Peers
Attractive Valuation Relative to Global Peers Compelling valuation with high Average Revenue Per User 1 As of market close on 24 November 2017 2 Monthly Active Users for Love Group in Oct 2017, Match Group for quarter ended Sep 2015, Momo in Jun 2017, The Meet Group in Jun 2017
Slide 13: Established Global Presence
Established Global Presence Matchmaking Stores Revenue by Geography Across Five Cities 1Q FY18
Slide 14: Glowing Testimonials from Satisfied Couples
Glowing Testimonials from Satisfied Couples We have helped start many thousands of love stories around the world Hazel & Michael Polly & Rob Vanessa & Matthew Zara & Nigel “ “ “ “ I joined Lovestruck after moving to We both joined Lovestruck after After a few months I spotted After a few months on L
Slide 15: Scalable Online-Driven Business Model With Multiple Revenue Streams
Scalable Online-Driven Business Model With Multiple Revenue Streams Large and engaged online user base generates multiple revenue stream High profit margins Low capex Attractive cash conversion cycle Premium Online Events Others Matchmaking Dating
Slide 16: Local Market Driven by Network Effects
Local Market Driven by Network Effects
Slide 17: Compelling ROI on Marketing Spend
Compelling ROI on Marketing Spend Highly attractive returns on marketing investment Multiple scalable and profitable lead acquisition channels
Slide 18: Attractive Unit Economics
Attractive Unit Economics 1 Company estimates
Slide 19: Scalable Marketing and Sales Funnel
Scalable Marketing and Sales Funnel Marketing and Sales Funnel – 1Q FY18
Slide 20: Our City Launch Playbook
Our City Launch Playbook 1. Build online a \ 2. Open premium a \ 3. Monetise online user database matchmaking store user database LOVE GROUP
Slide 21: Case Study: Hong Kong
Case Study: Hong Kong $275k in free cash flow generated in Hong Kong in 1Q FY18 1 Data for 1Q FY18 is based on unaudited management accounts
Slide 22: Growth Strategy
Growth Strategy Organic growth opportunities Y Increase market share in existing markets v Expand to new markets with strong demand for matchmaking VY Increase renewals and upselling Y Cross-sell complementary products and services Y Enhance online dating platforms Secular tailwinds v Increasing int
Slide 23: Investment Highlights
Investment Highlights 1 Large and growing addressable market 2 Scalable online-driven business model with attractive margins 3 Defensible business with local network effects 4 Innovative technology with strong portfolio of online dating platforms 5 Strong cash flow conversion with low capex and nega
Slide 24: “Join us to help singles find love”
“Join us to help singles find love” Thank you!