FRONTIER DIGITAL VENTURES LIMITED — Call Transcript 2024

Mar 4, 2024

==> picture [165 x 48] intentionally omitted <==

ASX Code: FDV 5 March 2024

2023 full year results call transcript

Frontier Digital Ventures Limited (“FDV” or the “Company”) is pleased to release an edited transcript from its 2023 full year results briefing held at 1:00pm AEDT on 28 February 2024.

The full recording of the results briefing is available on the FDV website:

• frontierdv.com/corporate presentations/

+++++

Shaun Di Gregorio: Welcome everyone. Pleasure to have everyone tuning in for our 2023 full year results. This past calendar year has been a significant year for us with some record milestones achieved, and our results have borne that out. I'm going to run through the highlights, and then take Q&A towards the end.

Slide 3

FDV operates online marketplaces in emerging markets. The model is very well proven for companies, whether they are ASX listed or operating around the globe, which are all helping consumers search and discover for key purchases being houses and cars. Some of the better examples you'll see around of the value that's been created include REA Group, Adevinta, Carsales.com, Seek, and Domain.

FDV has great representation in the key regions in which we operate. FDV focuses on three key regions, and our business model helps consumers with the search and discover process, then working increasingly close with sellers, whether that’s car dealers, property brokers or developers, to help connect them with buyers. That is, helping them through to the transaction.

There has been some exciting product developments by way of bridging that gap from classifieds to transactions over the last 12 months to 18 months. It's something that has been very much in the narrative of this model, which is how do you move from search and discover through to facilitating transactions. In the last couple of years, a lot of new entrants have come into the market seeking to tap the economic opportunity around transactions of houses and cars. Certainly, when there was a whole lot of COVID cash floating around, we saw many start-ups in many of our markets. It's been as an observation, very interesting watching the last 12 months to 18 months, where we've seen the value of being a market leader become even more important. Remarkably, over the last 12 months, we've seen all of those very marginal businesses that were chasing revenues around the transaction, with a lot of capital, fade away or contract. A lot of start-up activity was evident throughout 2021 and 2022. Now, what we've seen in 2023 is a lot of that start-up activity has abated, as capital dried up.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 1 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

What that has meant for market leaders is that you have an envious position in the markets. This has been reflected in our results, particularly our second half, which was very strong. We have been able to take advantage of being a market leader in an environment where many new start-ups have come into the market and failed, and we have now seen very little by way of start-ups in recent times. So, the markets have certainly rationalized, the markets have normalized and the value of being a market leader in emerging markets is more critical than ever. And we've really benefited from that over the last 6 months to 8 months, particularly in the second half of the year.

When people talk about what's important in the portfolio and the makeup of the portfolio, it is very much about being a market leader. I always mention it but emphasizing it even more because in the absence of any real start-up activity, we have seen competitive pressures ease. We have fewer competitors in the markets and certainly less capital around to fund new start-ups. So, the value of incumbency is strong as ever.

If you look at the brands that do this really well in most markets, they're leveraging incumbency, and that's what FDV is starting to be able to do in our markets, as seen through the tough conditions in the first half of 2023, with conditions improving in the second half of 2023. You will also see this in the results released, as the second half performance was a real significant achievement for the Group. There are a lot of opportunities still in these emerging markets, and we are very well positioned to start generating significant revenues by taking consumers through to transactions.

Slide 4:

Our regional footprint remains the same across three distinct regions – 360 LATAM, which is 100% owned and very significant for FDV, MENA Marketplaces Group (MMG), and FDV Asia. FDV Asia currently has six businesses in it that we own and operate.

Slide 5:

In terms of our model, we are focused on the unique market opportunity in emerging markets to develop trust and become the intermediary between buyers and sellers. As an example, if you're in Australia and you’re looking for a house or a car, you search and discover on Carsales or REA and deal with the seller off platform. Our model aims to keep people engaged and take them through to the transaction. When it comes to transactions, it's not just about taking a commission, which we do, but also about opportunities on ancillary revenue touch points, which FDV are getting better and better at.

Slide 6:

To remind people of the world in which we operate – high mobile penetration, large population, large GDP markets. These macroeconomic factors play well for our kind of businesses. Looking back 12 months, there were high interest rates, economic headwinds, and people getting nervous about emerging markets. What hasn't changed is the opportunity in these markets, the significant GDP,

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 2 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

high mobile penetration, and big populations. These macro factors haven’t changed and continue to remain really strong, and that's why we continue to really love these markets which we’re in.

Slide 8:

FDV achieved statutory revenue of A$67.9m, and when adding on the share of our Associates revenues, it brings operating revenue to over A$80.0m, which we think in the current environment was a strong result, particularly in the second half as conditions started to improve. The real call out has been the profitability. We’ve achieved EBITDA of A$3.7m over the full year. Adding on FDV’s share of Associates EBITDA, this brings the result to A$4.8m. This is FDV’s maiden full year positive statutory EBITDA.

In the second half of 2023 on an NPAT basis, we had a roughly A$11.0m turnaround versus the first half of 2023. A really significant achievement in the second half on an NPAT level, finally getting the bottom line where we want it. This has been underpinned by continued strong cash flows, four quarters of operating cash flow positive for FDV Group and in each operating region.

We have grown revenue 15% on a consolidated basis, and we have also seen our Associates results stabilise during 2023. We have shifted from being loss making to being profitable, with 2H 2023 being a real standout in terms of NPAT. We’re really proud of our progress, and we’re very bullish and ambitious as we head into 2024.

Slide 9:

I’ve often spoken about the economic share view in the past, which suited us as we had minority positions in many of the businesses. As FDV has moved to 100% ownership in more businesses and as we consolidate all of 360 LATAM and MMG, we are now trying to simplify the way in which we show our performance. This revenue graph highlights FDV’s revenue journey, which in 2023 constitutes A$67.9m in statutory revenue. When adding our share of Associates revenue, it brings operating revenue to over A$80.0m in 2023. Looking at 2017, which was our first full year reporting after listing, you can see that we have gone from A$9.0m revenue on a consolidated basis up to the current A$67.9m, plus Associates share.

Slide 10:

Here we are looking at a year-on-year view and providing more detail. The 360 LATAM region generated A$52.1m in revenue, which is now more than 5x the total consolidated revenue recorded by FDV in 2017. MMG has delivered a good story this year in terms of sustainability. Whilst MMG recorded a modest increase in revenue, impacted by a tough start to the year, we closed out 2023 strong. FDV Asia continues to perform really consistently for us on a consolidated basis. As an update on FDV Asia Associates, the situation in Pakistan has stabilised now. Associates EBITDA improved quarter-on-quarter in 4Q 2023, and we're cautiously optimistic about 2024.

Slide 11:

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 3 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

Group operating expenses held flat relative to last year, while we were also able to generate revenue growth. We've been diligent in using the tightening economic cycle to put a microscope on our costs. We discovered this playbook during COVID, and we were able to refer to elements of that in 2023 by reducing some of the costs in the Group, and this has been all about efficiency. For example, the 360 LATAM restructure in 2022 has allowed us to consolidate administrative roles and optimise our cost base during 2023. The increase recorded in production costs, which is linked to offline consumer events, is aimed at growing transactions revenue.

Slide 12:

The great thing about this model is that once the cost base is settled and you continue to deliver revenue growth, you then start to generate margins. Looking at statutory EBITDA, NPAT in the second half, cashflows, we are now starting to generate margin growth. We are going to be working harder this year to grow revenues after coming out of a tough period in the first half of 2023, and we are really optimistic about 2024. We are also now doing this from a position of profitability, growing margins, and improved cashflow.

All of our regions are now profitable, noting that MMG and FDV Asia both went from loss-making to profitability in 2023. Even FDV Asia Associates, which experienced some economic headwinds, remained profitable throughout 2023. We have also reduced our corporate costs here in Malaysia, so overall we have seen a significant improvement across the Group. So, it’s a good picture as far as we’re concerned, given the significant improvement in EBITDA underpinned by the continued strong growth in all three regions, while also keeping a lid on costs. It has been a really pleasing period, but there remains a lot of work to do this year.

We see 2024 as the next phase in our journey as a company, and we're starting the year from a position of strength, which our results demonstrate. In the markets we operate, our achievements have been outstanding. We have seen many competitors fail, and a lot of our competitors want to merge with us because they can see that we have well-run companies, which is a real credit to the teams we have on the ground and our focus on value creation while keeping costs under control.

Slide 13:

Here we highlight our statutory accounts. As context, when FDV was founded, we mostly owned minority stakes in a lot of companies. Thus, we made an effort to show the economic share view. We're now moving towards the reportable statutory view, as it reflects how FDV now owns 100% across a majority of the portfolio companies. This slide looks at the statutory view, it helps investors understand the EBITDA from our Associates, as well as some of the FX movement and significant items. These will dissipate over time, such as our D&A charges which are related to acquisitions made over the last few years.

The most compelling number here is the 2H 2023 NPAT performance, which has been a significant improvement, not just from 1H 2023, but also from previous years. This puts FDV in a strong position

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 4 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

with results heading in the right direction. Whether that’s revenue growth, which was the hardest result to deliver in 2023, especially when looking at our competitors. Whether it was EBITDA, cashflows, or NPAT result, we have now seen a strong recovery in our businesses from 1Q last year. We have now got our settings right, with strong and profitable regions, and we will continue to build on that.

Slide 15:

The 360 LATAM business has generated revenue growth from a healthy mix of revenue categories. Recurring subscription remains the bedrock. Advertising & media has always been the additional revenue category in most classifieds’ models. Transactions, of course, is what we’re aiming to grow, and it is continuing to make an increasing contribution to total revenue. The “Other” category represents our ancillary services, as well as Iris.

We have also seen significant improvement in EBITDA across the region, which is a result we're very pleased with and we are aiming to ensure we continue this trend.

Slide 16:

While our revenue growth was more modest for MMG, it was a fairly difficult period to grow revenue in the region. What we were able to do was to significantly improve the sustainability and the profitability of the region. When we acquired Avito, the business had an EBITDA of A$(3.0)m, whereas now we have delivered A$1.5m in EBITDA while also growing revenue. These are great headline numbers for MMG, which we see as a region with a lot of opportunity.

Looking at the revenue mix, it remains quite traditional with the majority of revenue derived from recurring subscriptions and advertising & media. There is no material revenue generated yet from transactions and ancillary product opportunities, which is when consumers go from search and discover through to the transaction. There was a lot of hard work done in this part of the world throughout 2023, and we’re pleased with the settings we now have heading into 2024.

Slide 17:

FDV Asia is the smallest out of the three regions. However, we were still able to grow revenue 25% despite tough market conditions. It's a region where transactions are a more significant part of the revenue by category mix. We have also moved this region through to profitability as well.

So, if you look at our scorecard, 360 LATAM was already profitable, and increased margins. MMG and FDV Asia were both unprofitable, but have now achieved profitability, highlighting the significant maturity of these businesses in terms of their ability to generate revenue growth and at a lower cost.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 5 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

Slide 19:

As an update on our Associates, and this hasn’t changed from our last update in the recent quarterly, but we have now seen Pakistan’s political and economic situation stabilise. Associates remained profitable throughout 2023 and was able to increase their profitability in 4Q 2023 relative to 3Q 2023. As a result, Associates profitability in 2H 2023 was strong, while revenue also stabilised during the year. Elections in Pakistan have now resulted in a coalition government, which is currently going through the process of making key appointments.

When discussing with the local team in Pakistan, the consensus view is that politics must be put aside, and economics must be the number one priority for the new government. We remain cautiously optimistic, with the new government in place, that we'll see better trading conditions in Pakistan this year. Interestingly, PakWheels grew revenue strongly and improved its profitability during 2023. We know that Zameen was impacted heavily, but we've seen the worst period pass, and they have maintained their profitability throughout the year. As such, we are cautiously optimistic in this part of the world.

The real upside for FDV is to continue delivering across our three consolidated regions in LATAM, in MENA, in Asia, alongside the benefit of what will be an inevitable improvement in Pakistan. So, lots of upside value to be seen in our business over the coming 12 to 18 months.

Slide 21:

Here we would like to provide a product update by way of double clicking on 360 LATAM. Many investors are interested in Iris, which is a product we released across all of our markets in 360 LATAM last year. This really simply connects property developers across Latin America, who have projects that they can't move, with the broker network that we have across Latin America. Those two groups don't talk to each other. Property developers don't talk to brokers. They don't typically use brokers. This is really a B2B product that's been released. It talks to our property developer customers, who can't shift some of their inventory. They plug it into Iris. This allows access to the 10,000 or so brokers that we can plug into Iris. They go find the inventory. They typically have buyers. And then we take 0.6% of the commission, 0.6% of the sale price, which is about 1/3 of the commission, as a fee for joining these two parties.

Slide 22:

So if you imagine, you are a broker in Bogota or Santiago for example, you have buyers but you can’t find the inventory. On the other side, you have property developers with projects they need to sell and shift their inventory quickly at the best price. Iris is simply connecting these two groups and generating more transactions for both parties. Our fee is 0.6% of the value of the property. We’re seeing steady improvement in the revenue generated from Iris and as we get it right, market more and become more established in all markets, we are also becoming more bullish on the potential for this product.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 6 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

Slide 23:

Iris plugs right in the middle and helps to demystify all of the things that go on between searching and finding a house, and actually buying that house. So, it's a little bit different and it doesn't involve the consumers per se, but the potential for this is significant. It already contributed over A$1.0m revenue last year with a very minor emphasis, and much of that was in the second half. So, a big opportunity around this product and other products like this.

The point here is it's an example of what can be done and not what hypothetically we've spoken about regarding transactions. The product is in place, is generating revenues and is crystallising this story about moving consumers from search and discover through to transactions, and not just having to do the transactions on behalf of them, but actually earning fees, helping people get more transactions done. This is the kind of business we’re in.

Slide 25:

In terms of our outlook, there are four categories to touch on. FDV is a revenue growth company. We think that there is significant opportunity in these markets based on the population, GDP, and volume of transactions. We know that there is a tonne of value to be created. So, we start 2024, as we’ve started every year, with a big focus on revenue growth. We know that we start 2024 in a very different position than we've ever started any other year, where all of our businesses are profitable.

Margins are also very important for our business, and it’s really important to be focusing on this. When you’re in a position where you need to fight for market leadership, signing consumers up, rolling products out, you end up having one eye on growth and one eye on costs in order to reduce burn. Once you achieve profitability, it’s a very different environment. That's a very different world to what we've had before and it's a really exciting one.

What becomes even more important and critical to your future opportunities is our product road map. You can get businesses to a straightforward way of search and discover and trying to promote ads along the way. Now we have an opportunity to really focus on our product road map and help build products that take consumers through to transactions. Product development is always a focus for companies like ours, but we are now in a strong position where we can focus on revenue growth while already being profitable and generating cash. We now have this opportunity to build really good products and we will invest more in product development this year. It’s a real priority for the group, particularly in 360 LATAM.

All these priorities’ feed into value creation for our investors. If you look at the fundamentals in FDV, there is a significant amount of value that has been created. We have talked about monetisation in this category before, but it’s not just about that. It’s also about how do we create value through other methods, such as transactions. If you get all of those things right, the value creation will crystallise in its own accord.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 7 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

There is more data at the back of the presentation, and you also have the opportunity to read through our review of operations, which was released this morning alongside our fully audited accounts. It is a real credit to our team, which I'll thank publicly on this call, for getting all of the audit work done. We've got lots of businesses in lots of parts of the world. We've got a really good audit. We've got all of our information out and now it's full steam ahead for 2024.

Q&A

Operator: The first question we have received is, how are you thinking about revenue growth versus earnings growth in 2024? Is the preference for higher revenue growth while maintaining margins? Or are you happy to accept lower growth with margins expanding?

Shaun Di Gregorio: We're a revenue growth business, but we're also a business that understands economics and understands the markets , having been running these businesses for a very long time. We proved this year a real emphasis on just keeping costs down and that's a great thing about the model. Now, growing revenue will be our number one priority. We will look to grow margin. At the same time, we want to make sure that we're investing on that product road map. So, it's a little bit of both. But if you force me to rank them, I go revenue, and then margin.

Historically, if you had asked me that question in the past, we didn’t have the margin. But we're now in a position, where we've got a good profitability profile. To grow margin, I've always had a view, and it's a pretty simple one, that if you grow revenue well enough, your margin will grow if you're sensible on costs. And I think that's just how we think about life, and it's a very simple way of thinking about it. Maybe it's been lost on some companies that haven't been able to get through the past 18 months. We're taking a very simple view of that and here we are with pretty good results for 2023.

Operator: The second question we have is that operating expenses seems to be flat across the group in 2023. What are your expectations for operating expenses growth if higher revenue growth can be achieved?

Shaun Di Gregorio: 2023 was an exercise in examining our cost base. As you get to a size on your revenue, it's one thing to say you've got A$80.0m in revenue and almost the same in costs, that's a lot of money. So in 2023, it was about saying, ‘Hey, we can do this faster, we can do this cheaper, we can do this more efficiently’. That's the maturity of the businesses, being able to say, ‘we're now at a point, where we're market leaders, we figured out the model, we’ve invested over the journey, now we can moderate that investment’.

We'll continue to really be vigilant on keeping our costs under control. You've got to get the balance right. It goes back to this idea that we've worked very hard to get to this point. It's an effort to get that cost base under control. We made an enormous amount of effort in doing that, whether it was our finance team in Malaysia or all the finance departments around each of our countries. Cost control will remain a big focus for us.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 8 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

We want to continue to invest in our product platforms. That's how we're going to grow these businesses over the next 3 to 5 years. Growing them over the last 3 years to 5 years, was certainly, about product and certainly about investing in product, but it was about getting the model right, it was about getting market penetration on your classifieds. It was about educating your sellers that we can help them with transactions. There's a hell of a lot of work went into just building the foundation. But you get to now and you say, right, now we can invest in the product road map on the back of all the work that's been done, and that does cost money. That's obvious. But it's an exciting thing to be doing, and it's a productive thing to be doing.

Businesses in our line of work who've struggled, might have been saving the furniture. That was never us. We're now about investing in the product road map. We are doing things like Iris, which is making a material contribution. So, our absolute emphasis is on keeping costs under control. We're absolutely foot on the gas on growth, and we're going to do it by investing smartly in our product road map.

Operator: The next question we have is, how is the competitive landscape evolving in Latin America? Are you seeing any opportunities to consolidate in the markets you are in?

Shaun Di Gregorio: There are fewer competitors in our markets now compared to two years ago. That's been marginal models backed by COVID cash that were trying to flip high-value consumer transactions, houses and cars, but doing it in a way that we just scratched our head.

That is, buying your apartment and flipping it in a market that's hot. However, what happens when that market is not hot and interest rates go up and there are fewer transactions, property prices drop? These businesses have really fallen back. It's no different to people trying to buy your car and flip it in 30 days for more than you could otherwise.

So, the competitive situation has abated. When we people ask, ‘are there M&A opportunities?’, we say, ‘Well, there always are’. I'd argue that a lot of them at the moment are, I'll call them A- or B+ or B-grade assets at best. There are decent businesses that are in markets that have fared alright. So there's a little bit of M&A around you could consolidate.

What we are focused on is building value for our shareholders. We recognise that we are undervalued, and that our results need to flow through to better value for our shareholders. I also don't think doing M&A with our current share price is a great idea at the moment. We are focused on delivering results and if that happens, then M&A opportunities will reappear. We’ve always been very clear about accretive transactions. We likely won’t be entering new markets, it'll be making sure we can continue to build on our story in the markets we're in, which is helping move consumers from search and discover through to the transaction.

Operator: MMG is largely generating revenue from traditional classifieds products. What do you see as opportunities to grow revenue in the region? And is this a function of greater product offerings and changes to the pricing model?

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 9 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

Shaun Di Gregorio: MMG markets are relatively developed. The classifieds model is well established. Where it's fun is, it hasn't moved toward transactions like other regions yet, and it will, and it is. The real opportunity there is to start to move consumers toward transactions and do more, particularly in houses and cars. That's where the revenue growth opportunities are.

Currently, MMG has a really traditional profile, it looks like 360 LATAM from five years ago, or FDV Asia around six to seven years ago. So the region is very much the third in line when looking at our regions in terms of its evolution. MMG’s growth will be product driven, focused on taking consumers beyond traditional classifieds, and we have already started doing that. It's that ancillary opportunity. It's not straight to the transaction. It's more about how can we help you make that purchase decision with greater certainty and greater trust. That's how you generate more transactions and that's how you generate more value from those transactions. So it will very

much be about that step. But we see it as a really interesting part of the world on an opportunity basis, it's got strong classifieds. We have proven the classifieds model by taking EBITDA from a A$(3.0)m loss when we acquired it to a A$1.5m profit. So that's a big tick for the team.

We have already had success by engaging with property developers and car manufacturers and helping them conduct transactions. 2024 is about building on this and starting to get more products into the market that can help consumers go through to the transaction. It's about the ancillary opportunity, not just the transactions themselves, but also how can we help consumers make that purchase decision with greater certainty and greater trust. It’s a really interesting part of the world on an opportunity basis, as it’s got a strong classifieds base. We have proven the classifieds model by taking EBITDA from a A$(1.8)m loss in 2022 to a A$1.5m profit in 2023. It's now about revenue growth, which is a clear mandate in MMG.

It's now revenue growth, and that's a clear mandate in MENA, and it's an opportunity we see pretty clearly. It will benefit from our experience in other markets and other regions. Keep in mind that some of our Asia businesses are way further down the transaction path compared to 360 LATAM. 360 LATAM is doing transactions in fewer volume, but doing it slightly different – a bit more focused on the ancillary revenue piece. MENA will be similar outcomes, slightly different path.

Operator: Our next question is, what are the gross profit margin profiles of the individual businesses?

Shaun Di Gregorio: Investors can find this in the back of the investor deck and the segment report. They vary from single-digit early-stage profitability, right through to 20-30%. We'd love to get all the businesses to the 40-50% range in the future. That’s where we think we can get to. If you look at our revenue trajectory and model out each business, if we keep growing revenue, we keep growing margin.

We would get the question in the past about how profitable these businesses can be? We are already seeing them clearly in the double digits and heading into the 20-30% range. I’m on the record saying I think 40% is not a bad hurdle and 50% would be wonderful. We’re on track in margin growth. If investors go back and look at the historical performance of the businesses, you’ll see that

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 10 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

all companies are growing and no margins have stagnated. You can then extrapolate that out and you’ll see the margins.

Operator: The next question is, what are your expectations for the likely timing of when Dubizzle, Zameen's parent company, may list?

Shaun Di Gregorio: Dubizzle Group, they have adopted the trading name of their significant business in the UAE, they have been asked this question before, number one is they still want to do it. In November 2022, they announced that they were preparing to pursue a listing, so getting the work done. There is a lot of cleaning house that you've got to do before you list and it takes some time, particularly coming from a field like that. So that aspiration remains really clear on their part.

The timing is the question. It's more likely to be a European listing than a U.S. listing given the nature of Dubizzle’s assets. So, you can assume London, not New York, would be more likely. It will hinge on how quickly Pakistan recovers. So that's all in our best interest. I will say that the people running the business have very high aspirations for what they want to do with that asset. So, we're very aligned. We're very lucky to have the people running that business that we do because they've got big ambitions for a value event for their holding company, of which Zameen's the biggest asset.

Zameen is in good hands. The evidence of that is their ability to continue to run it profitably and cash flow positively throughout what's been a tough 12 months. They've shepherded the business through a difficult period. They're very much keen on their IPO. It's going to need Pakistan to recover. We've seen it stabilize. Let's just see what happens in 2024. But yes, we're there to help them achieve their goals. We've said that to them.

Operator: The final question we have is how are you feeling about FDV's cash balance heading into 2024?

Shaun Di Gregorio: I feel good. We were operating cashflow positive every quarter in 2023, which is the first time we've ever achieved that. Cash is a precious commodity in any business, and in our business even more so as historically, our businesses have been loss-making and burning cash. Our businesses are all profitable now, so that means they generate cash.

When we report internally to our Board, the first slide is always cash. We're very focused on managing our cash responsibly. In the past, we've built our business on M&A and that's always required cash. We’ve had to raise capital along the journey, which pleases some people and displeases others, but I’d like to point to the fact that it has always been about the long-term.

As one of the largest shareholders, people can be rest assured that no one wants to be diluted. We want to generate cash. We've done that in 2023, and we'll continue to be hypervigilant because if you're generating cash, it gives you optionality. If gives you freedom and the ability to focus on growing revenue and building better products, because you’ve got that key financial marker under control. We know our cash balance is going to be growing, so we can then go find more initiatives in markets that are going to create value for shareholders.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 11 Tel: +60 3 2700 1591 www.frontierdv.com

==> picture [165 x 48] intentionally omitted <==

Operator: Thanks, Shaun. That concludes the Q&A section for today. I will now hand back to Shaun for closing remarks.

Shaun Di Gregorio: Thanks everyone for dialling in. It has been a challenging year, a year of two halves, appreciating that the second half was really strong, but we are now in a great position for 2024. Through those tough conditions, we set about making sure that we've got all our companies to profitability, we've got them all to grow, and we've got them all to be cash flow positive.

Investors can strap in for the next part of our journey, which is really exciting. As I said, it’s a big focus on creating value for shareholders, and we’ll do that by continuing to grow revenue, margin, and building core products.

• ENDS -

This announcement is authorised for release by the Board of Directors of Frontier Digital Ventures Ltd.

For more information, please contact:

Company

Investors

Shaun Di Gregorio Harry Halstead Founder and CEO Vesparum Capital Phone: +60 17 207 6221 Phone: +61 3 8582 4800 Email: shaundig@frontierdv.com Email: frontierdv@vesparum.com

About FDV

Frontier Digital Ventures (FDV) is a leading owner and operator of online classifieds marketplaces in fast growing emerging regions. Currently, FDV operates across three regions – 360 LATAM, MENA Marketplaces Group and FDV Asia. FDV works alongside local management teams across property, automotive and general classifieds, providing strategic oversight and operational guidance which leverages FDV’s deep classifieds experience and proven track record. FDV seeks to unlock further monetisation opportunities beyond the typical classifieds revenue, to grow the equity value of its operating companies and realise their full potential. Find out more at frontierdv.com.

Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia 12 Tel: +60 3 2700 1591 www.frontierdv.com