FRONTIER DIGITAL VENTURES LIMITED — Capital/Financing Update 2016

Sep 7, 2016

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ASX Code: FDV

8 September 2016

FDV increases equity shareholding in online classifieds leaders

Frontier Digital Ventures (“FDV”), a leading operator of online classifieds businesses in frontier markets across the globe, today announced that it would increase its equity shareholding in three of its market leading Operating Companies, as foreshadowed in the recent prospectus upon listing. This will be achieved by FDV exercising ‘Call Options’ in the three Operating Companies. The new funding will be deployed to further accelerate their market leadership.

Frontier’s strategy is to partner with local entrepreneurs running market leading online classifieds businesses in frontier markets, and apply its management and operating expertise, and financial resources to accelerate the growth and leadership position of each Operating Company.

As each business grows, Frontier will look to increase its equity stake as each business matures.

Frontier’s ambition is to become the leading operator of online classifieds businesses in its target markets by:

• owning and operating leading digital automotive, property or general classifieds websites in such markets across the globe;

• bringing best practices in management from more developed online classifieds markets to the Operating Companies; and

• continuing to pursue further strategic investment opportunities.

Frontier will also make additional investments in four of its other Operating Companies by way of tranche payments.

Both the Call Options and tranche payments will be made during the month of September.

FDV’s Chief Executive Officer, Shaun Di Gregorio said: “Our goal is to be the leading operator of online classifieds businesses in select frontier markets across the globe. We are currently partnered with 15 Operating Companies across 19 frontier markets, which are growing at a rapid rate. This round of Call Options will see us increase our equity shareholding in market leading online classifieds businesses in Myanmar, Ghana and Pakistan. The new funding will be deployed to further accelerate their market leadership”

Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia Tel: +60 3 2201 0790 www.frontierdv.com

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ASX Code: FDV

Di Gregorio added: “Each of the three businesses we are increasing our equity shareholding in: iMyanmarhouse.com, MeQasa.com and PakWheels.com, is exceeding our Key Performance Indicators for growth in advertisers, increasing number of consumers visiting the websites each month, and leads being generated from consumers to advertisers”

Total consideration to be paid by FDV for the Call Options and tranche payments is US$1.25 million. FDV at a group level has a free cash balance of AU$28.0 million for future funding requirements based on the continued successful execution of business strategies in each of the Operating Companies.

Call Options to be exercised in FDV’s Operating Companies during September:

Call options Exercised			Amount Payable USD
Operating company	Business	Market		New holding
1. iMyanmar Pte Ltd	iMyanmarhouse.com	Myanmar	300,000	42.63%
2. Meqasa Holdings Pte Ltd	Meqasa.com	Ghana	300,000	66.20%
3. PakWheels Pte Ltd	Pakwheels.com	Pakistan	250,000	36.84%

1. iMyanmarHouse.com (Property)

iMyanmarHouse.com is a leading property portal in Myanmar, a market of more than 53 million people. In July 2016, iMyanmarHouse.com had approximately 60,000 property listings from over 1,600 real estate agents, approximately 58 of whom are now paying for premium listing products or subscriptions. In the month of July, the site was visited by over 366,000 Myanmar property buyers. The business also stages Property Expos across the country, providing new property developers a marketing tool to increase brand awareness and to deepen relationships with real estate industry participants. The business also publishes a monthly property magazine.

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iMyanmarHouse Site Visits
600
500
400
300
200
100
0
Thousands
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Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia Tel: +60 3 2201 0790 www.frontierdv.com

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ASX Code: FDV

2. MeQasa.com (Property)

MeQasa.com is a leading property portal in Ghana, a market of approximately 28 million people. In July 2016, MeQasa.com had approximately 24,000 property listings from over 1,150 real estate agencies and developers. In the same month, the site received over 30,000 visits from Ghana property buyers. The business is focused on growing its number of listings and audience in 2016.

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MeQasa Site Visits
40
35
30
25
20
15
10
5
0
Thousands
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3. Pakwheels.com (Automotive)

Pakwheels.com is a leading automotive portal in Pakistan, a market of approximately 190 million people. In July 2016, Pakwheels.com had approximately 36,000 car listings from over 2,080 car dealers. In the same month, the site received approximately 5.2 million visits from Pakistan car buyers. Pakwheels also operates highly successful Auto Shows (with six shows held in 2015) where it sells exhibition space to car advertisers, attracting more than 330,000 motoring enthusiasts per year. The Auto Shows serve as a marketing tool to increase brand awareness and to deepen relationships with the auto industry in Pakistan.

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PakWheels Site Visits
6
5
4
3
2
1
0
Millions
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Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia Tel: +60 3 2201 0790 www.frontierdv.com

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ASX Code: FDV

Tranche payments to be made in Frontier’s Operating Companies during September:

Tranchepayments			Tranche payment USD
Operating company	Business	Current holding
Afribaba Holdings Pte Ltd	Afribaba.com	64.84%	150,000
Carwangu Pte. Ltd	Carwangu.com	60.05%	80,000
IMCongo Properties Pte Ltd	imCongo.com	65.91%	110,000
TechAfrica Pte Ltd	AngoCasa.com AngolaCarro.com	60.00%	60,000

Ends

For more information, please contact:

Shaun Di Gregorio Chief Executive Officer Tel: +60 17 207 6221 Email: shaundig@frontierdv.com

Mark Licciardo

Company Secretary Tel: +613 8689 9997 Email: markl@mertons.com.au

Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia Tel: +60 3 2201 0790 www.frontierdv.com

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ASX Code: FDV

About Frontier Digital Ventures Limited (www.frontierdv.com)

Frontier Digital Ventures is a leading operator of online classifieds businesses in underdeveloped, emerging countries or regions. With an amazing track record in building and supporting great companies, Frontier Digital Ventures are experts in the online classifieds space with a particular focus on property and automotive verticals and general classifieds websites. Its portfolio currently consists of 15 market leading companies, operating businesses across 19 markets. With the extensive support offered to the local operating companies, coupled with their own energy and work ethic, Frontier Digital Ventures is bringing outstanding companies of global significance to their full potential and setting a new global standard of excellence in the field.

Frontier Digital Ventures Limited Network of Websites

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Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia Tel: +60 3 2201 0790 www.frontierdv.com