Frontier Digital Ventures : Quarterly Activity Report and Appendix 4C

For personal use only

ASX Code: FDV

27 January 2022

4Q 2021 Quarterly Activity Report and Appendix 4C

Frontier Digital Ventures Ltd ("FDV" or the "Company") is pleased to release its Quarterly Activity Report and Appendix 4C for the December quarter ("4Q 2021").

• Record full year revenue of A$60.2m on an FDV % share basis, increasing 154% from A$23.7m in FY20, despite the ongoing impact of COVID-19
• Record monthly revenue in December 2021 of A$6.5m on an FDV % share basis, which annualises at A$78.0m and highlights the strong momentum heading into FY22
• Record A$1.9m full year portfolio EBITDA on an FDV % share basis, increasing A$1.3m from FY20, as 12 of the 16 operating companies reported positive EBITDA in 4Q 2021
• A$14.9m of cash receipts in 4Q 2021, increasing 95% from FY20, resulting in only a modest operating cash outflow of A$0.8m as FDV approaches cash flow breakeven
• Significant balance sheet strength and flexibility, with cash of A$36.2m as at 31 December 2021 and an additional A$18.9m following the recent Share Purchase Plan
• Record quarter from FDV LATAM business InfoCasas (now 100% owned by FDV), with revenue growth accelerating in accordance with FDV's blueprint for high growth transactional marketplaces in the LATAM region
• Record full year EBITDA from FDV Asia business Zameen (30% owned) of A$2.9m on an FDV % share basis, increasing 465% from FY20, resulting in an EBITDA margin of +16% (FY20: +4%) and demonstrating the earnings potential of transactional marketplaces as market leadership and scale increases

RECORD FULL YEAR REVENUE

Figure 1 shows FDV's record full year revenue in FY21 of A$60.2m on an FDV % share basis, increasing 154% from A$23.7m in FY20, despite the ongoing impact of COVID-19. This step change in revenue growth was underpinned by strong organic growth, with portfolio revenue increasing 70% from FY20 if the recent strategic acquisitions of Fincaraíz, Avito, Tayara and Yapo were excluded.

Figure 1: Revenue growth since IPO (A$m, unaudited, FDV % share basis)

					60.2
				COVID-19 onset			See Figure 2 for
			22.3	23.7			further detail
	8.5	14
3.8
2016	2017	2018	2019	2020	2021

Note: Results figures quoted for entities with continuing operations as at 31 December 2021

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia1 Tel: [phone] www.frontierdv.com

For personal use only

Figure 2 highlights the trend in monthly revenue across FY21, with FDV achieving record monthly revenue in December 2021 of A$6.5m on an FDV % share basis. This equates to the portfolio annualising at approximately A$78m and highlights the strong momentum heading into FY22.

Figure 2: Monthly portfolio revenue in FY21 (A$m, unaudited, FDV % share basis)

										6.2	6.5
								6.1	6.0
							5.8
						5.5
		4.5	4.3	4.3	4.6
3.3	3.3
Jan-21	Feb-21	Mar-21	Apr-21	May-21	Jun-21	Jul-21	Aug-21	Sep-21	Oct-21	Nov-21	Dec-21

Note: Results figures quoted for entities with continuing operations as at 31 December 2021

FDV's Founder and CEO, Shaun Di Gregorio said:

"2021 has been a transformational year for FDV, as cash flow breakeven approaches. We are delighted with the performance of our key operating companies, as they leverage their market leadership positions to grow transaction revenues and enhance their long-term earnings profiles.

We are particularly pleased with the continued strong performances of InfoCasas and Zameen. InfoCasas provides a great example of the rapid revenue growth achievable as transaction revenues augment traditional classifieds revenues. Similarly, Zameen's rapidly increasing profitability highlights the earnings potential of transactional marketplaces as market leadership and scale increases. We expect our other operating companies to follow in their footsteps, in line with our long-term value creation strategy for shareholders.

FDV is in an enviable position, with significant balance sheet strength and flexibility to continue to take advantage of market opportunities as they arise."

Table 1 and Table 2 below show the annual revenues by region and business on both a 100% basis and an FDV % share basis.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia2 Tel: [phone] www.frontierdv.com

For personal use only

Table 1: Annual revenues by business1 (A$m, unaudited; 100% basis)

		FDV	FY21		FY20
		ownership	Revenue		Revenue	Growth
		(%)	A$ (100% basis)		A$ (100% basis)	(% in A$)
	FDV LATAM		38,548,887		14,038,678
	InfoCasas2	100%	13,626,840		5,935,702	130%
	Fincaraíz3	100%	8,467,156		1,367,317	-
	Encuentra244	100%	8,334,373		6,735,659	24%
	Yapo5	100%	8,120,518		-	-
	FDV Asia		66,948,752		46,557,499
	Zameen	30%	60,347,040		40,107,854	50%
	PakWheels	37%	2,773,218		1,453,421	91%
	AutoDeal	56%	1,824,608		1,767,759	3%
	LankaPropertyWeb	53%	714,473		601,281	19%
	iMyanmarhouse	53%	614,707		1,281,008	(52%)*
	Hoppler6	51%	557,576		583,104	(4%)
	CarsDB	65%	117,130		763,073	(85%)*
	FDV MENA		9,125,248		2,542,158
	Avito3	100%	6,682,336		1,137,802	-
	West Africa7	N/A	851,511		720,989	18%
	Tayara3	100%	850,174		177,987	-
	Moteur8	100%	741,227	505,380	47%
	Total revenue		114,622,888		63,138,336	82%
	Total revenue (excluding new entities9)	90,502,704		60,455,228	50%

Table 2: Annual revenues by business1 (A$m, unaudited; FDV % share basis)

				FDV		FY21		FY20
				ownership		Revenue		Revenue	Growth
				(%)		A$ (FDV % basis)		A$ (FDV % basis)	(% in A$)
		FDV LATAM				30,534,369			6,676,906
	InfoCasas2	100%	11,608,099	3,094,875	275%
	Fincaraíz3	100%	8,467,156	1,255,397	-
	Yapo5	100%	8,120,518	-		-
	Encuentra244	100%	2,338,596	2,326,634	1%
		FDV Asia				21,013,276			15,210,001
	Zameen	30%	17,959,279	12,012,889	50%
	PakWheels	37%	1,021,653	535,469	91%
	AutoDeal	56%	1,017,949	986,233	3%
	LankaPropertyWeb	53%	378,742	314,015	21%
	iMyanmarhouse	53%	323,520	632,245	(49%)*
	Hoppler6	51%	236,219	234,596	1%
	CarsDB	65%	75,912	494,554	(85%)*
		FDV MENA				8,701,552			1,842,844
	Avito3	100%	6,682,336	1,034,255	-

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia3 Tel: [phone] www.frontierdv.com

For personal use only

Tayara3	100%	850,174	161,809	-
Moteur8	100%	741,227	284,584	160%
West Africa7	N/A	427,816	362,196	18%
Total revenue		60,249,197	23,729,751	154%
Total revenue (excluding new entities9)	36,129,013	21,278,290	70%

Notes:

1. Results figures quoted for entities with continuing operations as at 31 December 2021
2. FDV increased its shareholding in InfoCasas from 51% to 100% on 23 June 2021
3. FDV acquired a 100% interest in Fincaraíz, Avito and Tayara on 8 October 2020
4. FDV increased its shareholding in Encuentra24 to 100% on 23 December 2021; FY21 revenue figure represents the proportional share of revenue
5. FDV acquired a 100% interest in Yapo on 25 February 2021
6. FDV increased its shareholding in Hoppler from 42% to 51% on 15 July 2021
7. West Africa includes PropertyPro (Nigeria: 39% owned) and MeQasa (Ghana; 69% owned)
8. FDV increased its shareholding in Moteur from 56% to 100% on 21 January 2021
9. New entities refers to Fincaraíz, Avito, Tayara and Yapo

* Impacted by political unrest in Myanmar

RECORD FULL YEAR PORTFOLIO EBITDA

FDV reported record full year portfolio EBITDA of A$1.9m on an FDV % share basis, which increased from A$1.3m in FY20 and represented a portfolio EBITDA margin of +3% in FY21. The equivalent like- for-like portfolio EBITDA margin in FY21 would have been +10% on an FDV % share basis if the recently acquired businesses (Fincaraíz, Avito, Tayara and Yapo) were excluded, which highlights the significant improvement in underlying operating performance in FY21 as compared to FY20.

Figure 3: Portfolio EBITDA margin1 (A$m, unaudited; FDV % share basis)

FY16	FY17	FY18	FY19	FY20	FY21
				3%	3%
			(5%)
		(21%)
	(40%)
(84%)

Note: Results figures quoted for entities with continuing operations as at 31 December 2021

In FY21, 12 of 16 of FDV's operating companies were EBITDA positive on an FDV % share basis, up from 7 of 15 in the previous year. Pleasingly, 3 of the 4 operating companies with EBITDA losses in FY21 (Avito, Tayara and CarsDB) have seen positive trends in their EBITDA position throughout FY21. Hoppler is the only exception due to the temporary lockdowns in Manila in 2H 2021, albeit its EBITDA losses are very small in the context of FDV's broader portfolio.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia4 Tel: [phone] www.frontierdv.com

For personal use only

Table 3: Annual EBITDA by business1 (A$m, unaudited; FDV % share basis)

	FDV	FY21	FY20	EBITDA change
	ownership	EBITDA	EBITDA	(in absolute
	(%)	A$ (FDV % basis)	A$ (FDV % basis)	terms)
FDV LATAM		1,108,355	380,324
Fincaraíz3	100%	527,423	100,781	-
InfoCasas2	100%	450,724	210,260	240,464
Encuentra244	100%	67,073	69,283	(2,210)
Yapo5	100%	63,135	-	-
FDV Asia		2,832,052	215,557
Zameen	30%	2,854,694	505,140	2,349,554
PakWheels	37%	137,931	(237,468)	375,399
AutoDeal	56%	36,657	178,708	(142,051)
iMyanmarhouse	53%	13,911	23,632	(9,721)*
LankaPropertyWeb	53%	1,866	(25,062)	26,928
Hoppler6	51%	(92,883)	(119,065)	26,182
CarsDB	65%	(120,123)	(110,327)	(9,796)*
FDV MENA		(2,062,253)	33,211
West Africa7	N/A	71,149	(28,326)	99,474
Moteur8	100%	59,028	(58,596)	117,624
Tayara3	100%	(577,578)	(39,804)	-
Avito3	100%	(1,614,852)	159,937	-
Total EBITDA		1,878,155	629,092	1,249,062
Total EBITDA (excluding new entities9)	3,480,026	408,178	3,071,848

Notes:

1. Results figures quoted for entities with continuing operations as at 31 December 2021
2. FDV increased its shareholding in InfoCasas from 51% to 100% on 23 June 2021
3. FDV acquired a 100% interest in Fincaraíz, Avito and Tayara on 8 October 2020
4. FDV increased its shareholding in Encuentra24 to 100% on 23 December 2021; FY21 revenue contribution represents the proportional share of revenue
5. FDV acquired a 100% interest in Yapo on 25 February 2021
6. FDV increased its shareholding in Hoppler from 42% to 51% on 15 July 2021
7. West Africa includes PropertyPro (Nigeria: 39% owned) and MeQasa (Ghana; 69% owned)
8. FDV increased its shareholding in Moteur from 56% to 100% on 21 January 2021
9. New entities refers to Fincaraíz, Avito, Tayara and Yapo

* Impacted by political unrest in Myanmar

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia5 Tel: [phone] www.frontierdv.com