Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — Q2 2024 Earnings Presentation
32 slides from Frontier Digital Ventures's earnings presentation, Jul 30, 2024
Slide 1: 2Q 2024 Trading & 360 LATAM Growth Update
rsonal use only Leading online classifieds marketplaces in emerging regions 2Q 2024 Trading & 360 LATAM Growth Update ASX: FDV | 30 July 2024
Slide 2: Contents
CONTENTS rsonal use only 1. 2Q 2024 trading update 3 2. FDV overview 11 3. 360 LATAM overview & growth update 16 2
Slide 3: 2Q 2024 Group Highlights
2Q 2024 Group Highlights rsonal use only FDV achieved a record revenue result in 2Q 2024, being our best-ever quarterly A$22.1m Record quarterly revenue performance. This represents a 15% improvement on pcp and 14% on 1Q 2024, highlighting a positive rebound from the seasonally softer first quarter,
Slide 4: 2Q 2024 Snapshot
2Q 2024 SNAPSHOT Record revenue in 2Q 2024 and positive EBITDA across all regions while investing in long term product opportunities rsonal use only Quarterly operating • 360 LATAM: A$14.8m revenue in 2Q 2024, 18% on pcp Revenue from revenue consolidated entities • MENA Marketplaces Group (MMG): A$2
Slide 5: Group Operating Results
GROUP OPERATING RESULTS Record revenue of A$22.1m, increasing 15% on pcp and 14% on 1Q 2024. EBITDA of A$1.8m, increasing 10% on pcp and 14% on 1Q 2024, maintaining EBITDA margin while investing in long-term product opportunities rsonal use only Group operating revenue Group operating EBITDA and mar
Slide 6: LATAM Trading Update
360 LATAM TRADING UPDATE Record revenue of A$14.8m, up 18% on pcp, and positive EBITDA of A$1.3m while investing in product opportunities to position 360 LATAM for long-term revenue and EBITDA growth rsonal use only 360 LATAM revenue 360 LATAM EBITDA (A$m) (A$m) Investment in long-term product 14.8
Slide 7: MMG Trading Update
MMG TRADING UPDATE Revenue rebound on Q1 2024, increasing 25% to A$2.5m, and positive EBITDA of A$0.14m rsonal use only MMG revenue MMG EBITDA (A$m) (A$m) 0.73 2.7 2.4 2.4 2.5 2.0 0.35 0.22 0.14 0.14 Moteur Avito Tayara 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024
Slide 8: FDV Asia Trading Update
FDV ASIA FDV ASIA TRADING UPDATE Revenue of A$1.68m, increasing18% on 2Q 2023. Standout performance by iMyanmarhouse driven by strong transaction volumes rsonal use only FDV Asia (Consolidated) revenue FDV Asia (Consolidated) EBITDA (A$m) (A$m) 1.8 1.7 1.7 1.6 1.4 0.25 0.15 0.14 0.10 LPW 0.02 iMyanm
Slide 9: FDV Asia – equity accounted entities (Associates)
FDV Asia – equity accounted entities (Associates) rsonal use only 9
Slide 10: FDV Asia Associates Trading Update
FDV ASIA ASSOCIATES TRADING UPDATE Revenue of A$3.1m, increasing 13% on pcp, and positive EBITDA of $0.4m rsonal use only FDV Asia (Associates) revenue FDV Asia (Associates) EBITDA (A$m) (A$m) 3.11 0.49 2.97 2.97 2.97 2.75 0.35 0.29 2.57 2.48 2.52 2.60 0.43 2.45 0.24 0.22 0.09 0.09 0.06 0.02 0.11 0.
Slide 11: FDV Overview
rsonal use only FDV Overview 11
Slide 12: About FDV
ABOUT FDV Leading online classifieds marketplaces in emerging regions rsonal use only Proven classifieds marketplace model Classifieds marketplaces play a central role in formalising markets, with FDV focusing on high value consumer goods – property and automotive. Classifieds have been some of the
Slide 13: Market Leading Brands Spanning Three Key Regions
MARKET LEADING BRANDS SPANNING THREE KEY REGIONS Market leading classifieds marketplace businesses now generating revenue from ancillary opportunities and transactions rsonal use only FDV ASIA #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 100% ownership 100% ownership of Avito, Moteur and Tayara Ownership
Slide 14: Proven Business Model
PROVEN BUSINESS MODEL Highly successful online business model with unique opportunity to facilitate transactions in emerging markets rsonal use only Business model Market characteristics Classifieds Ancillary Transactions • Opportunity to generate • Lower levels of trust between • Agents and develop
Slide 15: Opportunity in Emerging Markets
OPPORTUNITY IN EMERGING MARKETS Online classifieds marketplaces have significant leverage to population and economic factors, with emerging markets amplifying the opportunity rsonal use only Population GDP Internet penetration Mobile connections 882m A$4.4tn 68% 125% Population of FDV‘s markets Aggr
Slide 16: 360 LATAM Overview & Growth Update
rsonal use only Overview & growth update 16
Slide 17: Overview
OVERVIEW Strategic footprint across key Latin American markets with long-term secular tailwinds rsonal use only Clear leaders in each market 180m people across 360 LATAM’s markets1 Average 129% mobile connections & 74% internet penetration2 Online marketplaces are formalising markets and act as trus
Slide 18: Attractive Markets
ATTRACTIVE MARKETS 360 LATAM operates across large and attractive markets with high rates of GDP per capita rsonal use only 360 LATAM‘s markets cover 180 million people... ...across some of Latin America‘s most prosperous countries (Population, million1,2) (GDP per capita, US$1,3) 240 25,000 Sum of
Slide 19: Established Market Leading Brands
ESTABLISHED MARKET LEADING BRANDS 360 LATAM‘s brands hold strong leadership positions over their peers with high volumes of leads rsonal use only Position Brand Core markets Visits1 Average monthly leads3 Uruguay 28.8x #1 Paraguay closest peer 0.2m Peru2 1.5x #1 Colombia closest peer 1.1m Costa Rica
Slide 20: Revenue Contribution
REVENUE CONTRIBUTION Balanced contribution across each brand with bias towards property verticals, where there exists the greatest opportunity to unlock ancillary and transactions revenue rsonal use only Revenue by brand Revenue by vertical Revenue by product category (2Q 2024) (2Q 2024) (2Q 2024)2
Slide 21: Track Record
TRACK RECORD 360 LATAM has achieved a CAGR of 55% from FY20 to FY23 and is targeting A$100m in revenue, underpinned by successful classifieds marketplace strategy rsonal use only 360 LATAM revenue since 2020 (A$m) 100.0 Assess inorganic opportunities Rebrand of group to 360 Expand ancillary LATAM an
Slide 22: 360 LATAM Ecosystem
rsonal use only Classifieds Transactional business Marketing products Sale through brokerage Real-time information curation 360 LATAM ECOSYSTEM Visit scheduling and support for buyers, sellers and professional clients Exclusive broker services opportunity Ancillary product property materials marketp
Slide 23: Growth Strategy
GROWTH STRATEGY rsonal use only 1. 2. 3. Scale core classifieds Unlock transaction Expand tech-enabled marketplaces commission pool ancillary products 23
Slide 24: 1. Core Classifieds Marketplaces
1. CORE CLASSIFIEDS MARKETPLACES Multiple levers to drive continued monetisation of operating metrics across the core business rsonal use only Growth drivers + Penetration – increase uptake of new and existing products + Product – investing in long-term product roadmap, Average monthly sessions acro
Slide 25: 2. Transactions – Size of Opportunity
2. TRANSACTIONS – SIZE OF OPPORTUNITY Focus on property vertical provide significant opportunity for 360 LATAM‘s marketplaces to penetrate property commission pool. Current in market product, Iris, is capturing 0.6% of the transaction value. rsonal use only ~1.3m X ~A$155k X 0.6% = ~A$1.2bn Annual p
Slide 26: 2. Transactions – Tech-Enabled Transaction Journey
2. TRANSACTIONS – TECH-ENABLED TRANSACTION JOURNEY Proprietary technology powering each step of the transaction journey rsonal use only 360 LATAM transaction model Intelligent communication tools interact Big data with site visitors Proprietary lead Developing lead quality by curating segmentation k
Slide 27: 2. Transactions – Iris Multiple Listing Services
2. TRANSACTIONS – IRIS MULTIPLE LISTING SERVICES 360 LATAM‘s Iris platform continues to experience rapid growth, leveraging deep market experience and the large audience of professional customers of the marketplaces rsonal use only Iris – Proprietary MLS Iris revenue since launch (A$k) Product overv
Slide 28: 3. Ancillary Products
3. ANCILLARY PRODUCTS Rapid growth of Centrify demonstrates 360 LATAM‘s ability to develop and commercialise ancillary products rsonal use only Product development Centrify – current focus Centrify revenue since launch B2B property materials marketplace, connecting supplier with (A$m) 7x builders, d
Slide 29: Vision
VISION An ecosystem of products built on the foundation of market leader classifieds marketplaces rsonal use only Client BROKERAGE DATA & ANALYTICS 29
Slide 30: Summary
SUMMARY Leading classifieds marketplace brands in Latin America rsonal use only Market leadership: Market leading classifieds businsess with strong competitive positions and high levels of buyer leads. Strategic 1. footprint across key markets in Latin America with high GDP per capita, large populat
Slide 31: Contact Us
CONTACT US rsonal use only PRINCIPAL OFFICE 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra Kuala Lumpur, Malaysia www.frontierdv.com ABOUT FDV This announcement is authorised for release by the Board Frontier Digital Ventures (FDV) is a leading owner and operator of of Directors of Fronti
Slide 32: Disclaimer
DISCLAIMER rsonal use only 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.
Frontier Digital Ventures — Q2 2024 Earnings Presentation on 6ix