Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — FY2020 Earnings Presentation
34 slides from Frontier Digital Ventures's earnings presentation, Feb 25, 2021
Slide 1: Leading Online Marketplaces in Emerging Markets
LEADING ONLINE MARKETPLACES IN EMERGING MARKETS NEW ACQUISITION AND 2020 FULL YEAR RESULTS PRESENTATION | 25 FEBRUARY 2021
Slide 2: The FDV Mission
THE FDV MISSION NEW ACQUISITION #1 property portal Leading general classifieds #1 real estate portal Leading general marketplace Pakistan Chile Colombia South and Central America “ Become the leading global operator of online #1 property portal Uruguay, Paraguay and Bolivia #1 general marketplace Mo
Slide 3: Strong Results and Execution of Strategy
STRONG RESULTS AND EXECUTION OF STRATEGY SECTION 1 • Acquisition of 100% of the issued capital of Yapo.cl (“Yapo”), the leading general classifieds portal in Chile, from Adevinta ASA New acquisition – Yapo • Consolidates FDV’s position in Latin America with entry into new market, complementing the e
Slide 4: New Acquisition – Yapo
NEW ACQUISITION – YAPO
Slide 5: Acquisition Overview
ACQUISITION OVERVIEW 1 Leading general classifieds portal in Chile with #1 position across high value auto and real estate verticals A$8.7m revenue 2 Entry into new highly attractive market complementing FDV’s existing presence in Latin America in 2020 Significant growth potential ~26m 3 underpinned
Slide 6: Overview of Yapo.cl
OVERVIEW OF YAPO.CL A leading online classifieds platform in Chile YAPO OVERVIEW: • Market leading general classifieds portal in Chile Revenue • #1 position in high value auto and real estate verticals by traffic1 2020: A$8.7m* *COVID-19 impacted • Historic competitor, MercadoLibre, pivoting to an A
Slide 7: New Market Entry
NEW MARKET ENTRY Acquisition expands FDV’s footprint and complements existing market presence in LATAM CENTRAL & SOUTH AMERICA Facilitates new market entry into one of the largest economies in LATAM1 #1 Proximity to InfoCasas, Fincaraíz and Encuentra24 #1 creates potential opportunities for consolid
Slide 8: Significant Growth Potential
SIGNIFICANT GROWTH POTENTIAL Established marketplace with significant monetisation opportunties Yapo historical operating revenue Yapo revenue by segment Yapo revenue by source (A$m, unaudited) (FY20) (FY20) 25% CAGR FY16 – FY19 Other 10.1 COVID-19 18% Advertising 9.5 impacted 25% Jobs Real Estate 8
Slide 9: Material Financial Contribution
MATERIAL FINANCIAL CONTRIBUTION Yapo acquisition increases 2020 pro forma FDV % share of revenue by 24% FDV revenue growth since IPO (A$m, pro forma unaudited, FDV % share basis) 24% increase in 2020 pro forma revenue 44.4 35.7 8.7 22.3 14.0 8.5 3.8 FY16 FY17 FY18 FY19 FY20 (pro forma incl. Yapo FY2
Slide 10: Strong Strategic Fit
STRONG STRATEGIC FIT Compelling acquisition underpinned by FDV’s proven investment approach • Market leadership across multiple verticals1 Exposure to large growing PORTFOLIO • New business represents a material contribution to 2020 pro forma revenue on an FDV % share basis Chilean market IMPACT • S
Slide 11: CEO quote on Yapo acquisition
“ We are excited to be adding Yapo, the market leading general classifieds platform in Chile, to our portfolio. FDV’s network of operating companies now spans the length of South America, significantly enhancing our scale across the highly attractive LATAM region. We expect Yapo to make a material c
Slide 12: Operational Update
OPERATIONAL UPDATE
Slide 13: Expanded Footprint Spanning Three Continents
EXPANDED FOOTPRINT SPANNING THREE CONTINENTS Highly strategic acquisitions and increased shareholdings in high growth operating companies DEVELOPING ASIA CENTRAL & SOUTH AMERICA MENA #1 Recent acquisition Recent increased investment 13
Slide 14: Shift to Digital
SHIFT TO DIGITAL COVID-19 has accelerated the transition to digital marketplaces Total sessions (m) +130% Advertisers (m) +175% 223 1.3 1.2 1.2 1.2 1.1 1.1 174 181 173 1.0 156 0.9 152 135 0.7 123 108 97 0.4 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 Growing consu
Slide 15: Portfolio Traffic Exceeding Pre-Pandemic Levels
PORTFOLIO TRAFFIC EXCEEDING PRE-PANDEMIC LEVELS Steady rebound in direct and organic traffic positions portfolio for continue revenue growth Direct and organic traffic across FDV’s portfolio (in aggregate) (m) 80 COVID-19 lockdowns 70 impacted traffic in early 2020 60 Strong rebound in traffic above
Slide 16: Geographic and Segmental Analysis
GEOGRAPHIC AND SEGMENTAL ANALYSIS Diversification across key regions and verticals improves risk-return profile and monetisation options REVENUE BY GEOGRAPHY REVENUE BY SEGMENT MENA (FDV % share basis1) (FDV % share basis1) 8% MENA General2 LATAM 15% General2 20% 28% LATAM Auto 25% 37% 10% Property
Slide 17: Portfolio Optimisation Activities
PORTFOLIO OPTIMISATION ACTIVITIES Continued optimisation of FDV’s portfolio to drive long-term shareholder value Monetisation ✓ Sale of 20% Propzy shareholding for cash consideration of US$4.7m (A$7.0 million) events ✓ Sale price represents a ~300% return to FDV‘s shareholders in ~2.5 years and is t
Slide 18: Strengthened Portfolio
STRENGTHENED PORTFOLIO Successful navigation of pandemic provides enhanced platform for growth STRATEGIC REVIEWS EXPANDED GLOBAL FOOTPRINT ✓ Pandemic provided an opportunity for strategic ✓ Acquisition of Fincaraíz, Avito and Tayara at attractive reviews and permanent cost efficiencies across the va
Slide 19: FY20 Results
FROWHean DIGITAL VENTURES ‘ hres
Slide 20: Enhanced Revenue Trajectory
ENHANCED REVENUE TRAJECTORY Increase in FDV % share of revenue with acquisitions providing a strong platform for growth Portfolio revenue since IPO Portfolio revenue since IPO (A$m, pro forma unaudited; 100% basis) (A$m, pro forma unaudited; FDV % share basis) +406% growth +840% growth 35.72 74.92 C
Slide 21: Maiden Full Year Profit at a Portfolio Level
MAIDEN FULL YEAR PROFIT AT A PORTFOLIO LEVEL Long-standing FDV milestone achieved despite significant disruption in FY20 Portfolio EBITDA Portfolio EBITDA as a % of revenue (A$m, unaudited FDV % share basis) (FDV % share basis) FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 0.6 3% (5%) (21%) -1.0
Slide 22: Continued Operating Improvement
CONTINUED OPERATING IMPROVEMENT Cost base initiatives accelerate path to self-sufficiency FDV FY 2020 FY 2019 ownership EBITDA EBITDA EBITDA (%) A$ (FDV % share basis) A$ (FDV % share basis) improvement Zameen 30% 505,140 79,472 InfoCasas 52% 210,260 82,561 AutoDeal 56% 178,708 100,841 7 operating c
Slide 23: FY 2020 Revenue Breakdown by Operating Company
FY 2020 REVENUE BREAKDOWN BY OPERATING COMPANY FDV’s exposure to portfolio assets continues to outperform on 100% basis A$ (100% basis) A$ (FDV % share basis) FDV Operating company interest Classifieds type FY 2020 Revenue FY 2019 Revenue Growth FY 2020 Revenue FY 2019 Revenue Growth Zameen 30% Prop
Slide 24: Outlook
OUTLOOK
Slide 25: Continued Execution on Proven Strategy
CONTINUED EXECUTION ON PROVEN STRATEGY Focused on pursuing scalable growth and profitability across the operating companies Deliver economies of scale Focus on long-term shareholder value Extend market leadership and unlock Various monetisation options for operating transactional revenues to drive i
Slide 26: Significant Upside Potential
SIGNIFICANT UPSIDE POTENTIAL FDV ownership evolving towards greater control of proven businesses Since its IPO in 2016, FDV has consistently executed on its goal to increase ownership levels of the strongest operating companies in its portfolio, with a clear focus on self-sufficiency Facilitating tr
Slide 27: Realising the Portfolio's Full Potential
REALISING THE PORTFOLIO’S FULL POTENTIAL Unparalleled online classified expertise focused on sustainable growth Sell down to existing Current focus shareholders Create additional equity value through active management Sale to financial investor Establish and consolidate Assess monetisation market le
Slide 28: Strong Track Record of Long-Term Value Creation
STRONG TRACK RECORD OF LONG-TERM VALUE CREATION • One of the top global online classifieds executives with a strong track record of long-term value creation • Former CEO of iPropertyGroup (ASX: IPP) and General Manager at REA Group • Spearheaded the transformation of iProperty Group from a US$15m sm
Slide 29: Corporate Overview
CORPORATE OVERVIEW FDV has a strong balance sheet, and its shares are tightly held Share price performance since IPO Substantial shareholders $1.90 Catcha Group (Patrick Grove and Luke Elliott) 13.1% $1.70 Shaun Di Gregorio (Founder and CEO) 11.0% $1.50 Barca Global Master Fund 7.4% $1.30 Smallco In
Slide 30: Recently Added to S&P/ASX All Technology Index
RECENTLY ADDED TO S&P/ASX ALL TECHNOLOGY INDEX FDV is the fifth company in its sub-sector to be included in Australia‘s primary technology-focused index Significant benefits to index inclusion Interactive Media & Services constituents Provides access to the fastest growing sector on the ASX through
Slide 31: Appendix
FRONT:ER DIGITAL VENTURES ; APPENDIX
Slide 32: Statutory Accounts
STATUTORY ACCOUNTS FDV’s current portfolio contains 12 investments which are accounted for on a consolidated basis and 3 investments which are reported as “associates” under the equity method AASB128 Operating company Accounting treatment Zameen Equity accounted Encuentra24 Consolidated Infocasas Co
Slide 33: Financial Profiles
FINANCIAL PROFILES Annual revenue by business since IPO (unaudited, 100% basis) FY20 ($A) FDV ownership COVID Impacted FY19 ($A) FY18 ($A) FY17 (A$) FY16 (A$) Zameen 30% 40,107,854 42,329,072 22,405,297 12,366,561 5,750,072 Encuentra24 26% 6,735,659 8,076,192 7,474,347 6,617,180 5,016,198 InfoCasas
Slide 34: Financial Profiles (cont.)
FINANCIAL PROFILES (CONT.) Annual EBITDA by business since IPO (unaudited, 100% basis) FY20 ($A) FDV ownership COVID Impacted FY19 ($A) FY18 ($A) FY17 (A$) FY16 (A$) Zameen 30% 1,689,001 264,906 (3,723,114) (6,380,130) (4,750,688) InfoCasas 52% 403,261 294,621 (52,842) (170,509) (206,578) AutoDeal 5
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