FRONTIER DIGITAL VENTURES LIMITED — Earnings Release 2019

Jan 30, 2020

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ASX Code: FDV

31 January 2020

Record revenue as portfolio-wide profitability approaches

Frontier Digital Ventures Limited (“FDV”, ASX: FDV) is pleased to announce its preliminary results for the 12 months ended 31 December 2019 (“FY19”).

• +75% increase in full year FY19 portfolio revenue to A$72.5m (100% basis), up from +57% increase achieved in FY18

• +66% increase in FDV economic share of FY19 portfolio revenue to A$23.6m

• 4 companies recorded positive EBITDA in FY19 (Zameen, Infocasas, iMyanmar and AutoDeal) while 2 additional companies recorded positive EBITDA in 4Q 2019 (Encuentra24 and Moteur)

• Portfolio-wide profitability approaching in 2020, consistent with previous ASX disclosures dating as far back as FDV’s FY17 results conference call

• Strong balance sheet maintained with cash of A$12.5m at 31 December 2019, down only marginally from A$13.0m balance at 30 September 2019

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

“2019 was a pivotal year for FDV and we finished the year with two significant announcements in mid-December in relation to an increase in our ownership of Infocasas and AutoDeal to 51% and 56% respectively. These transactions demonstrate an ongoing desire to increase our ownership of the better performing companies in our portfolio. FDV is well positioned with significant funding flexibility and a portfolio which continues to perform strongly. Pleasingly, we are experiencing increasing levels of interest from investors as portfolio-wide profitability approaches in 2020.”

Figure 1: Portfolio revenue since IPO (A$m, pro-forma unaudited, 100% basis)

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+75% growth
IPO (August 2016)
72.5
41.5
26.5
15.0
FY16 FY17 FY18 FY19
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Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia 1 Tel: +60 3 2201 0790 www.frontierdv.com

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Table 1: Annual revenues by business (100% basis, pro-forma unaudited)

FDV Ownership (%) FY18 Revenue A$ (100% basis)	 FY19 Revenue A$ (100% basis)	Growth (% in A$)
Zameen 30% 22,405,297	42,329,072	+89%
Encuentra24 42% 7,474,347	8,076,192	+8%
Propzy 20% 1,287,290	6,658,537	+417%
Infocasas 51% 2,812,271	6,022,050	+114%
iMyanmar 43% 1,378,363	1,919,567	+39%
Pakwheels 37% 2,034,576	1,910,577	-6%
AutoDeal 56% 1,063,713	1,835,136	+73%
CarsDB 65% 720,605	943,662	+31%
Hoppler 40% 868,150	928,350	+7%
West Africa1 N/A1 651,331	851,969	+31%
Moteur 56% 373,572	558,131	+49%
LankaPropertyWeb 48% 466,103	506,147	+9%
Total revenue 41,535,618	72,539,390	+75%

Table 2: Annual revenues by business (FDV ownership basis, pro-forma unaudited)

FDV Ownership (%) FY18 Revenue A$ (FDV basis)	 FY19 Revenue A$ (FDV basis)	Growth (% in A$)
Zameen 30% 6,721,591	12,698,725	+89%
Encuentra24 42% 3,144,380	3,397,570	+8%
Infocasas 51% 881,130	1,969,365	+124%
Propzy 20% 271,293	1,358,885	+401%
iMyanmar 43% 587,654	818,393	+39%
Pakwheels 37% 749,578	703,894	-6%
AutoDeal 56% 381,466	691,910	+81%
CarsDB 65% 549,966	611,595	+11%
West Africa1 N/A1 350,177	459,552	+31%
Hoppler 40% 203,347	373,497	+84%
Moteur 56% 199,454	314,289	+58%
LankaPropertyWeb 48% 222,588	241,711	+9%
Total revenue 14,262,625	23,639,385	+66%

Notes:

1. West Africa now includes PropertyPro (Nigeria; 39% owned) and MeQasa (Ghana; 80% owned)

Full year FY19 audited results will be released by the end of February 2019.

Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia 2 Tel: +60 3 2201 0790 www.frontierdv.com

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PORTFOLIO PROGRESSION

FDV has grown significantly since its IPO in August 2016, with total annual growth in portfolio revenue of 4.8x since IPO (100% basis) and 6.2x (FDV economic share).

Figure 2 highlights the strong +66% revenue growth rate achieved in FY19 on an FDV economic share basis, up from the corresponding revenue growth rate of +65% achieved in FY18. Propzy experienced particularly strong revenue growth in FY19, with a +417% increase over FY18 to A$6.7m (100% basis).

Figure 2: Portfolio revenue since IPO (A$m, pro- forma unaudited, FDV equity basis)

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+66% growth
IPO (August 2016) 23.6
14.3
8.7
3.8
FY16 FY17 FY18 FY19
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Figure 3 highlights the strong progress toward profitability as the EBITDA loss has contracted to 9% of revenue in FY19.

Pleasingly, Encuentra24 and Moteur contributed to this result, with both companies recording positive EBITDA in 4Q 2019. The introduction of new management at Encuentra24 and a greater focus on key verticals has resulted in a notable improvement in business performance.

FDV is approaching portfolio-wide profitability in 2020, consistent with previous ASX disclosures dating as far back as FDV’s FY17 results conference call.

Figure 3: Portfolio EBITDA as a % of revenue (FDV equity basis)

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FY16 FY17 FY18 FY19
(9%)
(26%)
(42%)
(84%)
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Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia 3 Tel: +60 3 2201 0790 www.frontierdv.com

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OPERATIONAL HIGHLIGHTS

FDV is pleased to provide an update on the 4 companies which recorded positive EBITDA in FY19, being Zameen, Infocasas, iMyanmar and AutoDeal.

UPDATE ON ZAMEEN

Zameen, the leading property portal based in Pakistan, continues to achieve strong growth, with revenue in 4Q 2019 up +86% on pcp to A$11.8m (100% basis). This strong revenue growth coupled with the recording of positive EBITDA in FY19 highlights the quality of the company’s management and dominant market position. Zameen is now seen as the trusted intermediary for both buyers and sellers when transacting properties in Pakistan.

Figure 4: Zameen revenue (A$000, 100% basis unaudited)

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21,995
20,334
12,667
9,738
7,299
2H 2017 1H 2018 2H 2018 1H 2019 2H 2019
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UPDATE ON INFOCASAS

Infocasas has exceeded expectations since FDV’s original investment in September 2017. Infocasas has cemented itself as the #1 property portal in Uruguay, Paraguay and Bolivia, while entering the Peruvian market in mid-2019. Recording positive EBITDA in FY19 highlights that Infocasas is delivering rapid revenue growth while at the same time being prudent with expenditure in relation to its continued expansion.

The company’s recent success is underpinned by the hard work and talent of local management working in conjunction with FDV’s strategic guidance. While some seasonality in new property project launches impacted revenue growth in 4Q 2019, Infocasas delivered a +114% increase in FY19 revenue over FY18 to A$6.0m (100% basis).

Subsequently, on 13 December 2019, FDV exercised its option to increase its ownership of Infocasas from 31.9% to 51.0% on a fully diluted basis for cash consideration of A$5.2m.

Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia 4 Tel: +60 3 2201 0790 www.frontierdv.com

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Figure 5: Infocasas revenue (A$000, 100% basis unaudited)

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3,798
2,224
1,726
1,086
795
2H 2017 1H 2018 2H 2018 1H 2019 2H 2019
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UPDATE ON IMYANMAR

iMyanmar, the leading property classifieds platform in Myanmar, recorded a +39% increase in FY19 revenue to A$1.9m (100% basis), while recording positive EBITDA over the year. Revenue growth in 2H FY19 was mildly slower than expected due to the delayed launch of several new property projects.

Myanmar continues to be a rapidly growing market and the company is well positioned to capitalize on its leading market position to expand its property transaction revenue streams; a key driver of its overall revenue growth. The country is experiencing rapid GDP growth and mobile penetration is now exceeding 90% of the population. These factors continue to underpin the success of iMyanmar.

Figure 5: iMyanmar revenue (A$000, 100% basis unaudited)

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983
936
736
642
477
2H 2017 1H 2018 2H 2018 1H 2019 2H 2019
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UPDATE ON AUTODEAL

AutoDeal, the leading operator of online car classified portals in the Philippines, achieved strong revenue growth in FY19 of +73% over FY18 to A$1.8m. It is one of the four FDV businesses to record positive EBITDA in FY19.

Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia 5 Tel: +60 3 2201 0790 www.frontierdv.com

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AutoDeal’s business has been designed to focus on new car sales, a strategic decision where the competitive landscape is less prone to disruption from lower value marketplace platforms. The outlook for AutoDeal in FY20 looks promising, with a number of new products expected to gain traction and facilitate the purchase of new cars.

FDV was pleased to increase its ownership of AutoDeal from 36.8% to 55.8% per the ASX announcement on 18 December 2019.

Figure 6: AutoDeal revenue (A$000, 100% basis unaudited)

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1,009
826
586
473 478
2H 2017 1H 2018 2H 2018 1H 2019 2H 2019
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This announcement is authorised for release by the Board of Directors of Frontier Digital Ventures Limited.

For more information, please contact:

Shaun Di Gregorio Founder and CEO Tel: +60 17 207 6221 Email: shaundig@frontierdv.com

About FDV

FDV focuses on developing online classifieds businesses in underdeveloped, emerging countries or regions. With a track record of supporting market leading online businesses, FDV’s management are experts in the online classifieds space with a particular focus on property and automotive verticals and general classifieds websites. FDV’s portfolio currently consists of investments in 12 market leading operating businesses across 14 markets. With extensive support offered to the local operating companies, coupled with the energy and work ethic of its management team, FDV is bringing outstanding companies to their full potential.

Frontier Digital Ventures Ltd 39-8 The Boulevard, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia 6 Tel: +60 3 2201 0790 www.frontierdv.com