For personal use only ONLINE MARKETPLACES IN EMERGING MARKETS 1 H - PowerPoint PPT Presentation

For personal use only ONLINE MARKETPLACES IN EMERGING MARKETS 1 H 2 0 1 9 H A L F Y E A R R E S U L T S P R E S E N T A T I O N | A U G U S T 2 0 1 9 FRONTIER DIGITAL VENTURES

Con ontents For personal use only 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 A$14.9m at 30 June 2019 SECTION 2 — Portfolio unlocking revenue streams closer to the transaction Strategy update — Portfolio optimisation progressing with a number of businesses attracting external funding and now pushing toward profitability — Near term strategy on track to progress towards profitability and monetisation SECTION 3 — Detailed operational updates for FDV’s market leading operations Operational updates FRONTIER DIGITAL VENTURES 2

SECTION 1 FINANCIAL HIGHLIGHTS For personal use only FRONTIER DIGITAL VENTURES 3

Ope perator of lead adin ing onlin nline ma marketplac laces in n Dev Develop oping Asia sia (ex Chi hina), Centr tral l & & South Ame merica and nd MENA For personal use only 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) on pcp on pcp breakeven in 1H 2019 in 1H 2019 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 FRONTIER DIGITAL VENTURES 4

St Strong revenue gr growth in n 1H 1H 20 2019 For personal use only Portfoli Port lio re revenue since e IPO O Portfoli Port lio re revenue since e IPO O (A$m, pro-forma unaudited; 100% basis) (A$m, pro-forma unaudited; FDV equity basis) 33.0 10.9 8.1 23.5 +5.2x growth on +9.1x 6.3 18.2 100% basis growth on FDV 15.1 5.1 equity basis 11.4 3.5 8.6 2.6 6.4 1.2 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 FRONTIER DIGITAL VENTURES 5

Revenue gr growth dr driv iving po positiv ive EB EBITDA cha change For personal use only Portfoli Port lio re revenue and nd EB EBITDA Portfoli Port lio EB EBITDA as a % of of re revenue (FDV equity basis) 1 (A$m, FDV equity basis unaudited) 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 (68%) 3.5 2.6 1.2 (1.0) (1.6) (1.6) (1.6) (1.8) (1.8) (2.2) (115%) 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 Note: 1. EBITDA as a % of revenue based on pro-forma unaudited figures for entities with continuing operations FRONTIER DIGITAL VENTURES 6

Revenue up up +8 +82% in n 1H 1H 20 2019 For personal use only 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% 642,020 983,238 +53% Pakwheels 37% 1,028,528 883,658 (14%) AutoDeal 37% 478,076 826,365 +73% Hoppler 40% 333,642 497,975 +49% CarsDB 65% 222,248 408,545 +84% Moteur 56% 143,379 245,539 +71% LankaPropertyWeb 48% 259,254 241,543 (7%) PropertyPro 39% 169,310 209,049 +23% MeQasa 81% 99,653 148,906 +49% TechAfrica 75% 52,600 79,618 +51% Total revenue 18,153,117 33,014,882 +82% FRONTIER DIGITAL VENTURES 7

All l our ur busin businesses are ma main intain ainin ing a po posit itiv ive traj ajectory y of revenue gr grow owth For personal use only 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 200 LankaProperty Pakwheels 100 PropertyPro Encuentra24 - 0% 100% 200% H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 FRONTIER DIGITAL VENTURES 8 Note: 1) Excludes TechAfrica which did not post revenue in 1H 2017

SECTION 2 STRATEGY UPDATE For personal use only FRONTIER DIGITAL VENTURES 9

The he evolutio ion of of the the on onlin line mar arketplace mod odel For personal use only Version 1.0 (2000-today) Optimal Design and Monetise Reach Reach #1 monetisation build ads/leads profitability window emerges Version 2.0 (2019+) Up to 10x Facilitate and Monetise Reach Optimal Design and Reach #1 participate in monetisation ads/leads profitability build (typically) market size of the transaction window emerges traditional marketplace Pursuing multiple revenue streams closer to the transaction FRONTIER DIGITAL VENTURES 10

Wha hat ar are e we e se seein ing acr across ou our r po portfolio io? For personal use only Version 2.0 (2019+) Optimal Facilitate and participate in the Reach Design and Reach #1 Monetise monetisation ads/leads transaction profitability build (typically) window emerges 100% transaction focused 5 businesses successfully All businesses have 5 market leading 4 businesses now graduated to market online marketplaces monetising transactions profitable leaders FRONTIER DIGITAL VENTURES 11

Why ver ersion 2.0 2.0 works in n eme emergin ing ma mark rkets? For personal use only Emerging markets present a ✓ Early stage markets and low entry price trem emend endou ous oppo portu tuni nity ty 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 sellers transaction ✓ Online classified websites often form a market Opportunity to become the intermediary ✓ between buyers and sellers Advertis rtising re revenues ✓ Being closer to the transaction is now a reality FRONTIER DIGITAL VENTURES 12

Port ortfolio io pr progressing towards po positiv ive EB EBITDA For personal use only 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% (61,511) 35,106 companies have AutoDeal (refer case study next slide) 37% (74,723) 32,877 become profitable and Infocasas (refer case study next slide) 31% (1,309) 32,159 more self-sufficient Moteur 56% (43,398) (12,822) and autonomous investments Lanka 48% (5,630) (17,972) TechAfrica 75% (72,237) (47,004) ToLet 39% (84,830) (56,168) Meqasa 81% (145,322) (70,659) Encuentra24 42% (131,226) (101,905) Two investments have Pakwheels 37% (147,504) (142,994) attracted external Hoppler 40% (52,203) (168,636) funding, allowing CarsDB (funded via external) 65% (122,058) (297,613) them to invest in product and marketing Propzy (funded via external) 20% (273,737) (522,694) costs to accelerate Total EBITDA (1,553,978) (990,959) revenue growth EBITDA excl. Propzy, CarsDB (1,158,183) (170,652) FRONTIER DIGITAL VENTURES 13 13

Zam ameen up update For personal use only Path to profitability Business highlights A$m +109% revenue growth to A$20m in 1H 2019 (100% basis) 25 Revenue EBITDA 20 81% revenue from transactions 15 Positive EBITDA of A$1.2m in 1H 2019 (100% basis) 10 5 US$220m pre-money valuation in last funding round - conducted in May 2018 (5) Self-sustaining operation having reached profitability 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 and successfully monetising transactions from its #1 position Best-in-class execution and is a case study of how to successfully monetise from a dominant market position with very high brand awareness FRONTIER DIGITAL VENTURES 14

Infocasas up update For personal use only Path to profitability Business highlights A$m +105% revenue growth to A$2.2m in 1H 2019 (100% basis) 2.5 Revenue EBITDA 2.0 15% revenue from transactions 1.5 Positive EBITDA of A$100k in 1H 2019 (100% basis) 1.0 0.5 Emerging leader within FDV‘s portfolio with fast growth - and increasing focus on transaction revenues (0.5) Valuable option to move to 51% FDV holds a call 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 option to increase ownership by 20% at 5x LTM revenue Leveraging leadership position Infocasas has a strong focus on furthering its #1 market position and leveraging this to expand into property transaction revenue streams Geographic growth opportunities with the portal now reaching into Peru with its transaction business FRONTIER DIGITAL VENTURES 15

AutoDeal l up update For personal use only Path to profitability Business highlights A$m +73% revenue growth to A$0.8m in 1H 2019 (100% basis) 1.2 Revenue EBITDA Positive EBITDA of A$89k in 1H 2019 (100% basis) 0.8 Tech innovation driving success AutoDeal have built 0.4 a proprietary lead management software platform which is accelerating sales of new cars through the platform - Focused on new cars Business has been designed to (0.4) focus on the strategic new car segment, which is less prone to 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 disruption from lower value marketplace platforms like Facebook Marketplace Reaching further into the automotive eco- system with a range of new products aimed at facilitiating the purchase of new cars FRONTIER DIGITAL VENTURES 16