Slide 1: Online Marketplaces in Emerging Markets: 1H 2019 Half Year Results
ONLINE MARKETPLACES IN EMERGING MARKETS 1H 2019 HALF YEAR RESULTS PRESENTATION | AUGUST 2019 FRONTIER DIGITAL VENTURES
Slide 2: Contents
Contents SECTION 1 — Half year revenue up +82% on pcp to A$33.0m (100% basis) Financial highlights — FDV share of half year revenue up +73% on pcp to A$10.9m — 4 companies recorded positive EBITDA in 1H 2019 — 9 companies expected to annualise >A$1m revenue in 2H 2019 — Consolidated cash balance of
Slide 3: Financial Highlights
SECTION 1 FINANCIAL HIGHLIGHTS FRONTIER DIGITAL VENTURES 3
Slide 4: 1H 2019 headline revenue and EBITDA
Operator of leading online marketplaces in Developing Asia (ex China), Central & South America and MENA Portfolio of 14 market leaders generating... Significant A$33m +82% A$11m +73% (A$1m) progress to Revenue (100% basis) Revenue (FDV basis) EBITDA (FDV basis) in 1H 2019 on pcp in 1H 2019 on pcp br
Slide 5: Strong revenue growth in 1H 2019
Strong revenue growth in 1H 2019 Portfolio revenue since IPO Portfolio revenue since IPO (A$m, pro-forma unaudited; 100% basis) (A$m, pro-forma unaudited; FDV equity basis) 33.0 10.9 23.5 8.1 +5.2x growth on 18.2 +9.1x 6.3 100% basis growth on FDV 15.1 5.1 equity basis 11.4 3.5 8.6 2.6 6.4 1.2 1H 20
Slide 6: Revenue growth driving positive EBITDA change
Revenue growth driving positive EBITDA change Portfolio revenue and EBITDA Portfolio EBITDA as a % of revenue (A$m, FDV equity basis unaudited) (FDV equity basis) 1 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 (9%) (25%) (27%) (36%) 10.9 8.1 (52%) 6.3 5.1 3.5 (68%) 2.6 1.2 (1.6) (1.6) (1.
Slide 7: Revenue up +82% in 1H 2019
Revenue up +82% in 1H 2019 FDV 1H 2018 1H 2019 ownership Revenue Revenue Growth (%) A$ (100% basis) A$ (100% basis) (% in A$) Zameen 30% 9,738,248 20,334,022 +109% Encuentra24 42% 3,650,500 3,988,832 +9% Infocasas 31% 1,086,304 2,223,624 +105% Propzy 20% 249,357 1,943,967 +680% iMyanmar 43% 642,020
Slide 8: All our businesses are maintaining a positive trajectory of revenue growth
All our businesses are maintaining a positive trajectory of revenue growth Half year revenue (A$, indexed to 100 in 1H 2017)1 Revenue CAGR (from 1H 2017) 700 FDV revenue (100% basis) Propzy Portfolio company revenue CarsDB 600 Zameen Infocasas 500 Moteur MeQasa 400 FDV Hoppler 300 iMyanmar AutoDeal
Slide 9: Strategy Update
SECTION 2 STRATEGY UPDATE FRONTIER DIGITAL VENTURES 9
Slide 10: The evolution of the online marketplace model
The evolution of the online marketplace model Version 1.0 (2000-today) Design and Monetise Reach Optimal Reach #1 monetisation build ads/leads profitability window emerges Version 2.0 (2019+) Up to Design and Reach #1 Monetise Facilitate and participate in 10x Reach Optimal monetisation build (typic
Slide 11: What are we seeing across our portfolio?
What are we seeing across our portfolio? Version 2.0 (2019+) Design and Reach #1 Monetise Facilitate and participate in the Reach Optimal monetisation build (typically) ads/leads transaction profitability window emerges 100% transaction focused All businesses have graduated to market 5 market leadin
Slide 12: Why version 2.0 works in emerging markets?
Why version 2.0 works in emerging markets? Emerging markets present a ✓ Early stage markets and low entry price tremendous opportunity to build online marketplace ✓ Leverage knowledge from established markets businesses with a focus on getting closer to the ✓ Lower levels of trust between buyers and
Slide 13: Portfolio progressing towards positive EBITDA
Portfolio progressing towards positive EBITDA FDV 1H 2018 1H 2019 equity EBITDA EBITDA EBITDA growth on pcp (%) A$ (100% basis) A$ (100% basis) (in absolute terms) A number of our Zameen (refer case study next slide) 30% (338,290) 347,366 market leading iMyanmar (refer case study next slide) 43% (61
Slide 14: Zameen update
Zameen update Path to profitability Business highlights A$m 25 +109% revenue growth to A$20m in 1H 2019 (100% basis) Revenue EBITDA 20 81% revenue from transactions 15 10 Positive EBITDA of A$1.2m in 1H 2019 (100% basis) 5 US$220m pre-money valuation in last funding round - conducted in May 2018 (5)
Slide 15: Infocasas update
Infocasas update Path to profitability Business highlights A$m 2.5 25 +105% revenue growth to A$2.2m in 1H 2019 (100% basis) Revenue EBITDA 2.0 20 15% revenue from transactions 1.5 15 1.0 10 Positive EBITDA of A$100k in 1H 2019 (100% basis) 0.5 5 Emerging leader within FDV‘s portfolio with fast grow
Slide 16: AutoDeal update
AutoDeal update Path to profitability Business highlights A$m 251.2 +73% revenue growth to A$0.8m in 1H 2019 (100% basis) Revenue EBITDA 20 0.8 Positive EBITDA of A$89k in 1H 2019 (100% basis) 15 100.4 Tech innovation driving success AutoDeal have built a proprietary lead management software platfor
Slide 17: iMyanmarHouse update
iMyanmarHouse update Path to profitability Business highlights A$m 251.2 +53% revenue growth to A$1m in 1H 2019 (100% basis) Revenue EBITDA 201.0 0.8 69% revenue from transactions 150.6 100.4 Positive EBITDA of A$82k in 1H 2019 (100% basis) 0.2 5 - Heavily transactions focused with over 600 - (0.2)
Slide 18: Recap of FDV strategy evolution
Recap of FDV strategy evolution <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 online by +57% to
Slide 19: A proven strategy to progress each business to profitability
A proven strategy to progress each business to profitability Consistent revenue growth Prudent expense management • Unlock ancillary revenue opportunities • Increasingly less reliance on paid traffic / across operating companies advertising • Leverage market leadership in regions • Operational scala
Slide 20: Operational Updates
SECTION 3 OPERATIONAL UPDATES FRONTIER DIGITAL VENTURES 20
Slide 21: Operational results summary
Operational results summary Revenue (A$000) Current Marketplace Website shareholding type Region 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Zameen 30% Property Asia 3,247 4,052 5,166 4,573 6,320 6,348 10,246 10,088 Encuentra24 42% General Central America . 1,774 1,545 1,799 1,85
Slide 22: Encuentra24: Trading Update
ENCUENTRA24: TRADING UPDATE Encuentra24.com is the leading general online marketplace in the key Central American markets of Panama, Costa Rica, Nicaragua and Honduras Revenue (A$000, 100% basis) Business update • Encuentra24 has made 2 recent senior executive appointments, including Javier 2,049 Or
Slide 23: Propzy: Trading Update
PROPZY: TRADING UPDATE Propzy recorded an exceptional quarter of revenue growth as it accelerates operations following a successful external capital raising in 2018 Revenue (A$000, 100% basis) Business update 1,378 • Propzy has a unique business model where it focuses on facilitating transactions in
Slide 24: Pakwheels: Trading Update
PAKWHEELS: TRADING UPDATE The leading auto marketplace in Pakistan that is experiencing sector headwinds as the local automotive industry faces regulatory transformation Revenue (A$000, 100% basis) Business update 750 • Pakwheels continues to experience market headwinds in 1H 2019 which dampened rev
Slide 25: Hoppler: Trading Update
HOPPLER: TRADING UPDATE Highly scalable and innovative online platform that is aimed at facilitating property transactions: potential to disrupt the traditional brokering model in the Philippines Revenue (A$000, 100% basis) Business update • In 1H 2019 Hoppler focused on the expansion into 6 cities
Slide 26: Moteur: Trading Update
MOTEUR: TRADING UPDATE Strong revenue growth over the last 3 quarters has positioned Moteur as the #1 automotive portfolio in Morocco Revenue (A$000, 100% basis) Business update 169 • Moteur is Morocco’s #1 automotive online marketplace with the #1 market position by sessions 131 • Morocco is one of
Slide 27: PropertyPro: Trading Update
PROPERTYPRO: TRADING UPDATE PropertyPro is the #1 online property marketplace business in Nigeria and is implementing strategies to accelerate monetisation of its market leading position Revenue (A$000, 100% basis) Business update 168 • Over the last 12 months PropertyPro has established itself as t
Slide 28: LankaPropertyWeb: Trading Update
LANKAPROPERTYWEB: TRADING UPDATE Strong growth in listings and visits over the last year has seen LankaPropertyWeb overtake its competitors as the leading online real estate portal in Sri Lanka Revenue (A$000, 100% basis) Business update 148 • LankaPropertyWeb has reached the #1 position against bot
Slide 29: MeQasa: Trading Update
MEQASA: TRADING UPDATE MeQasa is the #1 property marketplace in Ghana having recently acquired its former competitor Jumia House Ghana and extended its market leadership Revenue (A$000, 100% basis) Business update • MeQasa is the #1 property portal in Ghana, founded in 90 2013 by Kelvin Nyame and Ra
Slide 30: CarsDB: Trading Update
CARSDB: TRADING UPDATE CarsDB is the leading automotive online marketplace in Myanmar Revenue (A$000, 100% basis) Business update 372 • CarsDB is the leading automotive portal in Myanmar, a 335 market of almost 60m people • Founded in 2012 by three Singapore based and educated Burmese Wai Yan Lin, M
Slide 31: TechAfrica: Trading Update
TECHAFRICA: TRADING UPDATE TechAfrica posted record quarterly revenue in 2Q 2019 as it continues to monetise its market leading position for its property and automotive portals Revenue (A$000, 100% basis) Business update • TechAfrica (AngoCarro and AngoCasa) are early stage portals and the first to
Slide 32: 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