Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — FY2018 Earnings Presentation
32 slides from Frontier Digital Ventures's earnings presentation, February 2019
Slide 1: FY18 Full Year Results Presentation
For personal use only ONLINE CLASSIFIEDS IN FRONTIER AND EMERGING MARKETS FY18 FULL YEAR RESULTS PRESENTATION | FEBRUARY 2019 FRONTIER DIGITAL VENTURES
Slide 2: Results and strategy highlights
Results and strategy highlights For personal use only SECTION 1 • FDV has established a track record of delivering on guidance, with FY18 actual revenue of A$41.7m exceeding revenue guidance provided in July 2018 of A$40m FY18 results ‒ Rapid revenue growth over the last two years as FDV moves towar
Slide 3: Section 1: FY18 Results
SECTION 1 FY18 RESULTS For personal use only FRONTIER DIGITAL VENTURES 3
Slide 4: FY18 results update
FY18 results update For personal use only Portfolio revenue since IPO Portfolio revenue since IPO (A$m, pro-forma unaudited; 100% basis) (A$m, pro-forma unaudited; FDV equity basis) 23.5 8.1 18.2 +3.7x +5.6x 6.3 growth on 15.2 growth on FDV 5.1 100% basis equity basis 11.4 3.5 8.6 6.4 2.4 1.4 H1 201
Slide 5: Rapid revenue growth
Rapid revenue growth Strong and consistent revenue growth over the last two years as portfolio progresses towards profitability For personal use only Portfolio revenue and EBITDA Portfolio EBITDA as a % of revenue (A$m, FDV equity basis unaudited) (FDV equity basis) 1 2016 2017 2018 Revenue EBITDA 1
Slide 6: Strong growth in key operating metrics
Strong growth in key operating metrics For personal use only +157% +65% Advertisers (#) Total sessions (m) 185,717 187,935 169,225 154 159 155,157 140 129 124,818 104 96 73,045 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 Clear focus on key monetisa
Slide 7: Continued growth across the portfolio in FY18
Continued growth across the portfolio in FY18 For personal use only Portfolio deliberately skewed towards property classifieds as a result of stronger adjacency opportunities Current Classifieds Target Total website Revenue Revenue Operating company interest type markets Population1 sessions for FY1
Slide 8: Strategy Execution Update
SECTION 2 STRATEGY EXECUTION UPDATE For personal use only FRONTIER DIGITAL VENTURES 8
Slide 9: Portfolio optimisation continues
Portfolio optimisation continues 2018 saw continued maturation of some of FDV’s leading operating companies, with a portfolio For personal use only comprised of businesses that have a clear path to profitability Zameen Current iMyanmarHouse portfolio of Pakwheels clear market CarsDB.com leaders Encu
Slide 10: Portfolio approach optimises risk-return trade-off
Portfolio approach optimises risk-return trade-off FDV‘s portfolio approach is designed to minimise single market risk while maintaining exposure to For personal use only high growth emerging markets FDV half year revenue since IPO Comparative revenue period at iProperty (A$m, pro-forma unaudited; F
Slide 11: Strong revenue growth across the entire portfolio since IPO
Strong revenue growth across the entire portfolio since IPO with FDV (ex. Zameen) now contributing over half of total revenue and sessions For personal use only Portfolio revenue since IPO Revenue breakdown (A$m, pro-forma unaudited; FDV basis) (2H18, unaudited FDV share) 8.1 Zameen revenue Revenue
Slide 12: Several outstanding businesses emerging in the broader FDV portfolio
Several outstanding businesses emerging in the broader FDV portfolio, closely following the successful Zameen blueprint For personal use only Established property portal market Targeting a market which is Highly strategic investment into a leader in Uruguay and Paraguay experiencing a surge in inter
Slide 13: Continued progression to profitability
Continued progression to profitability For personal use only Focus on progressing towards portfolio-wide profitability over FY19 Consistent revenue growth Prudent expense management • Unlock ancillary revenue opportunities • Increasingly less reliance on paid traffic / across operating companies adv
Slide 14: Significant value created not reflected in share price performance
Significant value has been created within FDV‘s portfolio which does not appear to be reflected in share price performance For personal use only Revenue growth (A$m, 100% basis) Consistent execution delivering strong 41.7 revenue growth 26.5 ...yet recent share price performance 15.0 does not appear
Slide 15: Focus for FY19
SECTION 3 FOCUS FOR FY19 For personal use only FRONTIER DIGITAL VENTURES 15
Slide 16: FDV strategy evolution
FDV strategy evolution For personal use only <2016 2017 2018 2019 onwards ESTABLISH PORTFOLIO OPERATIONAL PROGRESS TO DRIVE PORTFOLIO OPTIMISATION GROWTH PROFITABILITY SHAREHOLDER VALUE ✓ Restructured ✓ Acquired 4 market ✓ Revenue increased ✓ Target sustainable ✓ Expand portfolio around leading clas
Slide 17: FDV well positioned to capitalise on activity across online classifieds sector
FDV is well positioned to capitalise on the increasing levels of activity across the online classifieds sector For personal use only Certain operating companies nearing the end of ...with the market seeing some recent monetisation FDV‘s optimisation process... activity (particularly involving financ
Slide 18: Appendix: Additional Information
APPENDIX ADDITIONAL INFORMATION For personal use only FRONTIER DIGITAL VENTURES 18
Slide 19: Zameen
ZAMEEN: TRADING UPDATE For personal use only The #1 property classifieds in Pakistan and FDV’s most advanced stage investment Business update – Zameen is the #1 property portal in Pakistan and was FDV’s first investment – Continues to leverage its market leading position – reported a A$22.4m result
Slide 20: Encuentra24
ENCUENTRA24: TRADING UPDATE For personal use only Encuentra24.com is the leading general classifieds platform in the key Central American markets of Panama, Costa Rica, Nicaragua and Honduras Business update – Encuentra24.com successfully expanded their leadership position in each of their core mark
Slide 21: Infocasas
INFOCASAS: TRADING UPDATE For personal use only Infocasas is the #1 property online classifieds platform in Uruguay and Paraguay and a leading operator in Bolivia Business update – Established property portal market leader in Uruguay and Paraguay, now focused on revenue growth • #1 property portal i
Slide 22: Pakwheels
PAKWHEELS: TRADING UPDATE For personal use only The leading auto classifieds platform in Pakistan and one of the best examples of the successful roll-out of ancillary revenue streams across FDV’s portfolio Business update – The #1 online auto classifieds platform in Pakistan – Pakwheels has a positi
Slide 23: iMyanmarHouse
IMYANMARHOUSE: TRADING UPDATE For personal use only #1 property platform in Myanmar with a significant market opportunity to capture growing market with increasing rates of internet penetration Business update – The #1 property portal in Myanmar with a clear market leadership position • Significant
Slide 24: Propzy
PROPZY: TRADING UPDATE For personal use only Propzy continues its track record of strong revenue growth across 2018 as it significantly increases traction with its focus on facilitating property transactions Business update – Propzy is an online classifieds platform that originates and facilitates p
Slide 25: AutoDeal
AUTODEAL: TRADING UPDATE For personal use only Autodeal is the #1 online auto classifieds platform in the Philippines Business update – AutoDeal is the #1 auto website in the Philippines • Currently focused on the highly valuable new car market and aims to achieve market leadership in the used car m
Slide 26: Hoppler
HOPPLER: TRADING UPDATE For personal use only Highly scalable and innovative online platform that is aimed at facilitating property transactions: potential to disrupt the traditional brokering model in the Philippines Business update – Innovative online platform used by vendors, buyers and real esta
Slide 27: CarsDB
CARSDB: TRADING UPDATE For personal use only The #1 automotive classifieds platform in Myanmar operating in a market which is experiencing a surge in internet users Business update – CarsDB is the #1 online auto classifieds portal in Myanmar • FDV currently has 65% equity ownership of CarsDB down fr
Slide 28: LankaPropertyWeb
LANKAPROPERTYWEB: TRADING UPDATE For personal use only Strong growth in listings + site visits over the last 12 months has seen LankaPropertyWeb consolidate its position as the leading online real estate portal in Sri Lanka Business update – LankaPropertyWeb is #1 online real estate portal in Sri La
Slide 29: ToLet
TOLET: TRADING UPDATE For personal use only ToLet is the #1 online property classifieds business in Nigeria and is currently integrating revenue, traffic, listings and customers from its acquisition of Jumia House Nigeria Business update – Operator of #1 online property classifieds portal for rental
Slide 30: Moteur
MOTEUR: TRADING UPDATE For personal use only Moteur is the #1 automobile online classifieds platform in Morocco Business update – AutoDeal is the #1 auto website in the Morocco • FDV has a current equity ownership of 56.6% after increasing their stake from 48.7% in July 2018 • Currently focused on t
Slide 31: meQasa
MEQASA: TRADING UPDATE For personal use only The #1 property portal in Ghana; currently in the process of acquiring its former competitor Jumia House Ghana which is expected to further extend its market leadership Business update – meQasa is the leading property portal in Ghana, accessing a market o
Slide 32: 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
Frontier Digital Ventures — FY2018 Earnings Presentation on 6ix