Catcha Digital Bhd · MYX:CATCHA
Catcha Digital Bhd — Q3 2024 Earnings Presentation
49 slides from Catcha Digital Bhd's earnings presentation, Nov 27, 2024
Slide 1: Catcha Digital Berhad Q3 FY24 Online Investor Briefing
Catcha Digital Berhad Q3 FY24 Online Investor Briefing Date: 27th Nov 2024 Time: 10:00 a.m. – 10:45 a.m.
Slide 2: Agenda
Agenda for Catcha Digital Berhad Q3 FY24 Online Investor Briefing Agenda 1 Catcha Digital Berhad’s Vision & Mission 2 Financial Performance Update (Q3’FY2024) 3 Business Updates 4 Q&A 2
Slide 3: Catcha Digital Berhad's Vision and Mission
1. Catcha Digital Berhad’s Vision and Mission
Slide 4: Building the #1 Digital Group in Southeast Asia
Building the #1 Digital Group in Southeast Asia The global digital economy is growing rapidly and Southeast Asia is picking up steam Digital economy of Digital economy of Digital advertising to Southeast Asia is Southeast Asia is Enterprise software contribute spending to grow HUGE GROWING FAST 67%
Slide 5: We do it by building, growing and scaling leading digital companies in SEA
We do it by building, growing and scaling leading digital companies in SEA Digital Media We are here now… PHASE 1 PHASE 2 PHASE 3 We build and grow digital We invest in, acquire and scale To go regional once Malaysian companies great entrepreneur-led digital and market is dominated, replicating soft
Slide 6: We build and acquire great entrepreneurial digital companies with sustainable profits and cashflow
We build and acquire great entrepreneurial digital companies with sustainable profits and cashflow 1 WE BUILD AND ACQUIRE GREAT ENTREPRENEURIAL PROFITABLE DIGITAL COMPANIES 4 2 WE ENABLE EARNINGS GROWTH WE CREATE SUSTAINABLE BY SUPPORTING & COACHING SHAREHOLDER VALUE IN THE OUR COMPANIES & PEOPLE LO
Slide 7: A proven and balanced approach to create long-term shareholder value
With a proven & balanced approach to create long-term shareholder value Core Revenue Growth via better monetization & effective cross-selling + Margin Expansion driven by operating efficiency and cost synergies post-acquisition EPS Growth & + = Compounding Highly Accretive Acquisitions Shareholder o
Slide 8: Programmatic M&A
Programmatic M&A CATCHA DIGITAL
Slide 9: Programmatic M&A starts with objective-driven acquisitions
Programmatic M&A starts with objective-driven acquisitions Platform Acquisitions Add-on Acquisitions Geographical or product No integration to offering expansion existing companies Vertical or horizontal expansion in the value- Sufficient scale either at chain acquisition or through focused buy-and-
Slide 10: Acquisition Criteria
We assign criteria specific based on the objective of our acquisitions Platform Acquisitions Add-on Acquisitions Qualitative Qualitative Market Leaders Strategic Value-Add Market Leaders Digital Focus Acquisition Criteria Established Financial Entrepreneurial High Profit Potential Entrepreneurial Tr
Slide 11: Deal structure guided by 20%+ IRR
Deal structure is guided by 20%+ IRR to create EPS-accretive investment structure that aligns incentives for all parties involved Valuation of 4x - 9x Price-to-Earnings (“PE”) Multiple Free Cash Flow Growth of 5-20% >20% Payment tranched over 24-48 months IRR Payment tied to Profit and Performance G
Slide 12: Valuation of target companies is informed by business characteristics
Valuation of target companies is informed by a set of business characteristics that determines the quality of the business P/E MULTIPLE Company Growth Profit Revenue Churn Rate Customer Profit Balance Legal & Technical Reliance on Size Rate Margin Predictability (Logo & Concentration Guarantee Sheet
Slide 13: Structured 8-step investment process
Our investment team follows a structured 8-step process to maximise effectiveness and efficiency 1 Prospect Formulate Thesis → Build List of target companies via online databases and offline network 2 Qualify Qualify targets based on financials via public sources and market intelligence 3 Contact Re
Slide 14: Dating Funnel
A robust and active Dating Funnel as an analogy to our M&A Funnel Dating Funnel “Swiped Right” on Dating Apps + Intro from Uncle and Aunties 118 Had Coffee, Lunch and Dinner Date(s) With 38 Assess the potential of the dates 18 Life & Marriage Expectation Calibration 8 Presented to parents 3 Notes: •
Slide 15: M&A Funnel
A robust and active M&A funnel in the last 17 months M&A Funnel Prospected, Tracked in Proprietary Database 3433 Had Meetings With 641 Performed Preliminary Assessment 325 Entered Negotiation 105 Presented to IC 16 Notes: • Metrics since June 2023, as of 25 Nov 2024 • IC means Investment Committee •
Slide 16: We have been there, done that…
We have been there, done that…
Slide 17: Dedicated Board and Management Team with Significant Ownership of 65%+
Dedicated Board and Management Team with Significant Ownership of 65%+ Board of Directors | 52.6% Ownership Patrick Grove Luke Elliott Dato’ Justin Leong Chairman Director Director Management Team | 12.5% Ownership Eric Tan Voon Tze Khay Jacky Tee CFO, Catcha Digital Media Group CEO CEO, Catcha Digi
Slide 18: Operating case study: Creating the leading online automotive group in SEA
Operating case study: Creating the leading online automotive group in SEA 10,000% Carsome completes the increase from Mkt. acquisition of iCar Asia for a Cap at IPO purchase price of RM890m • Acquired Live Life Drive (leading auto content site in • 7.5m monthly Catcha founded MY) iCar Asia unique vi
Slide 19: Operating case study: Creating the leading online real estate group in SEA
Operating SEA’scase Techstudy: SceneCreating the leading is exploding, and online this isreal justestate group in SEA the start…… 30,000% REA Group acquires increase in Mkt. Cap iProperty at a from IPO valuation of RM2.3bn • Acquired property expo business in • 1.6m monthly • 3.5m monthly Hong Kong
Slide 20: Case Study of our 1st Platform Acquisition
Case Study of our 1st Platform Acquisition
Slide 21: We do it by building, growing and scaling leading digital companies in SEA
We do it by building, growing and scaling leading digital companies in SEA Digital Media We are here now… PHASE 1 PHASE 2 PHASE 3 We build and grow digital We invest in, acquire and scale To go regional once Malaysian companies great entrepreneur-led digital and market is dominated, replicating soft
Slide 22: Programmatic M&A starts with objective-driven acquisitions
Programmatic M&A starts with objective-driven acquisitions Platform Acquisitions Add-on Acquisitions Geographical or product No integration to offering expansion existing companies Vertical or horizontal expansion in the value- Sufficient scale either at chain acquisition or through focused buy-and-
Slide 23: Programmatic M&A starts with objective-driven acquisitions
Programmatic M&A starts with objective-driven acquisitions Platform Acquisitions Add-on Acquisitions 23
Slide 24: One-stop online-to-offline digital media solutions
Doubling down to offer a one-stop online-to-offline digital media solutions offers better value and convenience to customers Brand Owners Digital Media Publishers (Customers) Acquired these 14 horizontal lifestyle digital media brands Expanding into … (1) Industry verticals • LOI Stage - New Online
Slide 25: Case Study: iMedia as the Platform acquisition
Case Study: iMedia as the Platform acquisition, upon which more accretive add-on acquisitions are added At Acquisition Implied based 38% 2021[1] on latest reduction in financials effective valuation 12.0x 7.5x after 2 years shows P/E ratio[2] P/E ratio[2] significant Driven by value creation We acqu
Slide 26: Validated by tremendous value creation for add-on acquisitions
Validated by tremendous value creation for add-on acquisitions ✓ Profit After Tax (PAT) saw significant uplift after acquisition, some experienced complete turnaround ✓ Evidence of successful value creation and synergy extraction Ownership stake% FY20 FY23 RM1500k RM868k 1.6x RM803k RM710k 17.0x 6.1
Slide 27: Summary of Add-on Acquisitions
Summary of Add-on Acquisitions Total Current Transaction(s) P/E at Initial Blended P/E based Company Brands Acquisition Year Consideration Paid Shareholding (%) Involved Acquisition (x)[1] on FY23 PAT[2] (RM) Acquired initial stake of 80% and Oh Media Sdn 2020 100% 2,800,000 exercised call 4.4x 3.9x
Slide 28: Summary of Add-on Acquisitions (Cont'd)
Summary of Add-on Acquisitions (Cont’d) Total Current Transaction(s) P/E at Initial Blended P/E based Company Brands Acquisition Year Consideration Paid Shareholding (%) Involved Acquisition (x)[1] on FY23 PAT[2] (RM) Acquired initial stake of 60%; still Moretify Sdn 2021 60% 1,950,000 holding call
Slide 29: Looking Ahead…
Looking Ahead... CATCHA DIGITAL
Slide 30: Digital Media M&A Approach
Digital Media M&A Approach: Accretive M&As and partnerships to broaden our advantage as the leading one-stop digital media solutions provider Combo of Build, Acquire, Expand via M&A and Expand via M&A Expand via M&A Convert & Partner Partnerships Digital Media Publisher Digital Media Publisher Digit
Slide 31: Software: Asset-light B2B software businesses
Software: Asset-light B2B software businesses with proven financial track record and a management fit Organisational Business Characteristic Financial Characteristic Investment Characteristic Characteristic ▪ Business-to-Business offering ▪ High cash conversion ▪ Solid margins ▪ Strong management ▪
Slide 32: Financial Performance Update (Q3'FY2024)
Financial Performance Update (Q3’FY2024)
Slide 33: Catcha Digital Berhad Financial Performance
Catcha Digital Berhad Financial Performance Catcha Digital Berhad Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 YoY Q3 (“CDB”) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 % Net Revenue 2,926 6,957 7,190 6,500 8,783 7,629 11,142 55% Cost of Sales (816) (1,970) (2,439) (2,144) (3,013) (2,428)
Slide 34: Business Updates
Business Updates CATCHA DIGITAL
Slide 35: One-stop online-to-offline digital media solutions
Doubling down to offer a one-stop online-to-offline digital media solutions offers better value and convenience to customers Brand Owners Digital Media Publishers (Customers) Acquired these 14 horizontal lifestyle digital media brands Expanding into … (1) Industry verticals • LOI Stage - New Online
Slide 36: Layar Bawah Bintang
Layar Bawah Bintang
Slide 37: Layar Bawah Bintang
GET READY FOR AN UNFORGETTABLE CINEMA EXPERIENCE LIKE NO OTHER! LAYAR BAWAH BINTANG WILL BE A 3 WEEK BACK-TO-BACK EVENT TOURING 3 DIFFERENT STATES, BRINGING TO MALAYSIANS THE BEST BLOCKBUSTER AND FAMILY FILMS. All you have to do is pack your picnic baskets, a blanket, and join us outside!
Slide 38: Venue
VENUE PENANG | 6-7 Sep Padang bersebelahan Kopa Arena USM PAHANG | 13-14 Sep Dataran Sayangi Kuantan MELAKA | 20-21 Sep Padang Dataran Pahlawan
Slide 39: Media Value for our advertisers
Our marque O2O initiative in 2024, Layar Bawah Bintang, generated RM4.6m in Media Value for our advertisers 7.5m+ Impression 5.6m+ Reach 8k+ Attendees RM4.6m+ Media Value Competitive Advantage for CDB’s Online-to-offline (“O2O”) Strategy Enhance value proposition to CDB’s Expand revenue contribution
Slide 40: Augmented Reality Advertising
Augmented Reality Advertising
Slide 41: Augmented Reality Advertising with CelcomDigi and Unilever
Augmented Reality Advertising with CelcomDigi and Unilever – surpassed deliverables by 50% 41
Slide 42: KS Lagi
KS Lagi
Slide 43: Newest addition to our portfolio
Newest addition to our portfolio
Slide 44: KS Lagi platforms and subscribers
317,000 Subscribers The main host platform for the podcast with full episodes (each 1-2 hours long) boasting 10m hours of watch time. 418,000 Followers Secondary platform to post snippets of the best bits of the Hosted by Khairy and Shahril, video podcast Keluar Sekejap has consistently been ranked
Slide 45: Less Politics, More Life
LESS POLITICS, MORE LIFE The pairs’ vision is to create a new media brand for the masses that will aim to deliver bite-sized entertainment and educational content on lifestyle topics. PHASE 1 09/2024 PHASE 2 11/2024 LANGUAGE PRIMARILY BAHASA MELAYU CONTENT PILLARS CURRENT EVENTS FOOD + TECH + CARS H
Slide 46: Programs in the Pipeline
PROGRAMS IN THE PIPELINE COMMENTARY ON GRWM | TRENDING TOPICS A DAY IN MY LIFE KELUAR SEMBANG sample AND MUCH MORE In ‘K-Ayuh Sihat,’ K+S sets up In ‘Keluar Sembang,’ our host K+S takes on the stall in scenic outdoor takes to the road in a review Gen-Z world of locations, inviting famous car with we
Slide 47: Successful Launch, Sponsored by MG Motor
Successful Launch, Sponsored by MG Motor Views Achieved vs Target 800k 722k 700k Outperformance 600k 125% 509k 500k 722% 400k 400k 300k 200k 100k 100k 0k Main Video Snippet Videos Target Achieved • MG Motor as KSL’s 1st sponsor • Ourperformance of delivery by 1.2x and 7.2x Source: Source: • Set stro
Slide 48: Q&A
Q&A CATCHA DIGITAL
Slide 49: Thank You
Thank You Catcha Digital Berhad, Co-Labs Coworking The Starling Plus, Lot PT297, Level 4 Uptown 7, Jalan SS 21/39, Damansara Utama, 47400 Petaling Jaya, Selangor 49
Catcha Digital Berhad — Q3 2024 Earnings Presentation on 6ix