Catcha Digital Bhd · MYX:CATCHA
Catcha Digital Bhd — Investor Presentation (July 2024)
46 slides from Catcha Digital Bhd's investor presentation, July 2024
Slide 1: Catcha Digital Berhad Investor Deck (July 2024)
Catcha Digital Berhad KLSE:CATCHA Investor Deck (July 2024) Building the leading Digital Group in Southeast Asia
Slide 2: Catcha Digital Berhad's Vision & Mission
Catcha Digital Berhad’s Vision & Mission
Slide 3: Building the #1 Digital Group in Southeast Asia
Building the #1 Digital Group in Southeast Asia The global digital economy is growing rapidly and Southeast Asia is picking up steam Digital economy of Digital economy of Digital advertising to Southeast Asia is Southeast Asia is Enterprise software contribute spending to grow HUGE GROWING FAST 67%
Slide 4: We do it by building, growing and scaling leading digital companies in SEA
We do it by building, growing and scaling leading digital companies in SEA Digital Media We are here now… PHASE 1 PHASE 2 PHASE 3 We build and grow digital We invest in, acquire and scale To go regional once Malaysian companies great entrepreneur-led digital and market is dominated, replicating soft
Slide 5: We build and acquire great entrepreneurial digital companies with sustainable profits and cashflow
We build and acquire great entrepreneurial digital companies with sustainable profits and cashflow WE BUILD AND ACQUIRE GREAT ENTREPRENEURIAL PROFITABLE DIGITAL COMPANIES WE ENABLE EARNINGS GROWTH WE CREATE SUSTAINABLE BY SUPPORTING & COACHING SHAREHOLDER VALUE IN THE OUR COMPANIES & PEOPLE LONG-TER
Slide 6: A proven & balanced approach to create long-term shareholder value
With a proven & balanced approach to create long-term shareholder value Core Revenue Growth via better monetization & effective cross-selling + Margin Expansion driven by operating efficiency and cost synergies post-acquisition EPS Growth & + = Compounding Highly Accretive Acquisitions Shareholder o
Slide 7: Programmatic M&A
Programmatic M&A CATCHA DIGITAL
Slide 8: Programmatic M&A starts with objective-driven acquisitions
Programmatic M&A starts with objective-driven acquisitions Platform Acquisitions Add-on Acquisitions Geographical or product No integration to offering expansion existing companies Vertical or horizontal expansion in the value- Sufficient scale either at chain acquisition or through focused buy-and-
Slide 9: Acquisition Criteria
We assign criteria specific based on the objective of our acquisitions Platform Acquisitions Add-on Acquisitions Qualitative Qualitative Market Leaders Strategic Value-Add Market Leaders Digital Focus Acquisition Criteria Established Financial Entrepreneurial High Profit Potential Entrepreneurial Tr
Slide 10: Deal structure guided by 20%+ IRR
Deal structure is guided by 20%+ IRR to create EPS-accretive investment structure that aligns incentives for all parties involved Valuation of 4x - 9x Price-to-Earnings (“PE”) Multiple Free Cash Flow Growth of 5-20% >20% Payment tranched over 24-48 months IRR Payment tied to Profit and Performance G
Slide 11: Valuation of target companies informed by business characteristics
Valuation of target companies is informed by a set of business characteristics that determines the quality of the business P/E MULTIPLE Company Growth Profit Revenue Churn Rate Customer Profit Balance Legal & Technical Reliance on Size Rate Margin Predictability (Logo & Concentration Guarantee Sheet
Slide 12: Structured 8-step investment process
Our investment team follows a structured 8-step process to maximise effectiveness and efficiency 1 Prospect Formulate Thesis → Build List of target companies via online databases and offline network 2 Qualify Qualify targets based on financials via public sources and market intelligence 3 Contact Re
Slide 13: Dating Funnel
A robust and active Dating Funnel as an analogy to our M&A Funnel Dating Funnel “Swiped Right” on Dating Apps + Intro from Uncle and Aunties 118 Had Coffee, Lunch and Dinner Date(s) With 38 Assess the potential of the dates 18 Life & Marriage Expectation Calibration 8 Presented to parents 3 Notes: •
Slide 14: M&A Funnel
A robust and active M&A funnel in the last 12 months M&A Funnel Prospected, Tracked in Proprietary Database 3033 Had Meetings With 585 Performed Preliminary Assessment 287 Entered Negotiation 87 Presented to IC 11 Notes: • • Metrics since June 2023 IC means Investment Committee LOI Signed 4 • LOI me
Slide 15: A progressive approach to empower companies to stay nimble and grow
A progressive approach to empower companies to stay nimble and grow unencumbered with check-and-balance We provide (‘Toolkit’) We support • A stable long-term owner • Strategic Planning • • Investments Support in M&A Independent • Support in Financing CDB Companies • Business Development • Treasury
Slide 16: Creating a win-win proposition to both sellers and CDB's shareholders
Creating a win-win proposition to both sellers and CDB’s shareholders Seller’s Win CDB’s Win ▪ Organic and stable ▪ Crystallise investment growth ▪ Profitable, strong cash- ▪ Continuity of life’s work flow businesses & legacy preservation ▪ Employee and customer ▪ Accretive acquisitions certainty fo
Slide 17: We have been there, done that…
We have been there, done that…
Slide 18: Dedicated Board and Management Team with Significant Ownership of 65%+
Dedicated Board and Management Team with Significant Ownership of 65%+ Board of Directors | 52.6% Ownership Patrick Grove Luke Elliott Dato’ Justin Leong Chairman Director Director Management Team | 12.5% Ownership Eric Tan Voon Tze Khay Jacky Tee CFO, Catcha Digital Media Group CEO CEO, Catcha Digi
Slide 19: Operating case study: Creating the leading online automotive group in SEA
Operating case study: Creating the leading online automotive group in SEA 10,000% Carsome completes the increase from Mkt. acquisition of iCar Asia for a Cap at IPO purchase price of RM890m • Acquired Live Life Drive (leading auto content site in • 7.5m monthly Catcha founded MY) iCar Asia unique vi
Slide 20: Operating case study: Creating the leading online real estate group in SEA
Operating SEA’s case Techstudy: Scene Creating the leading is exploding, and online this isreal justestate group in SEA the start…… 30,000% REA Group acquires increase in Mkt. Cap iProperty at a from IPO valuation of RM2.3bn • Acquired property expo business in • 1.6m monthly • 3.5m monthly Hong Kon
Slide 21: Case Study of our 1st Platform Acquisition
Case Study of our 1st Platform Acquisition
Slide 22: We do it by building, growing and scaling leading digital companies in SEA
We do it by building, growing and scaling leading digital companies in SEA Digital Media We are here now… PHASE 1 PHASE 2 PHASE 3 We build and grow digital We invest in, acquire and scale To go regional once Malaysian companies great entrepreneur-led digital and market is dominated, replicating soft
Slide 23: Programmatic M&A starts with objective-driven acquisitions
Programmatic M&A starts with objective-driven acquisitions Platform Acquisitions Add-on Acquisitions Geographical or product No integration to offering expansion existing companies Vertical or horizontal expansion in the value- Sufficient scale either at chain acquisition or through focused buy-and-
Slide 24: Programmatic M&A starts with objective-driven acquisitions
Programmatic M&A starts with objective-driven acquisitions Platform Acquisitions Add-on Acquisitions 24
Slide 25: Case Study: iMedia as the Platform acquisition
Case Study: iMedia as the Platform acquisition, upon which more accretive add-on acquisitions are added At Acquisition Implied based 38% 2021[1] on latest reduction in financials effective valuation 12.0x 7.5x after 2 years shows P/E ratio[2] P/E ratio[2] significant Driven by value creation We acqu
Slide 26: Validated by tremendous value creation for add-on acquisitions
Validated by tremendous value creation for add-on acquisitions ✓ Profit After Tax (PAT) saw significant uplift after acquisition, some experienced complete turnaround ✓ Evidence of successful value creation and synergy extraction Ownership stake% FY20 FY23 RM1500k RM868k 1.6x RM803k RM710k 17.0x 6.1
Slide 27: Summary of Add-on Acquisitions
Summary of Add-on Acquisitions Total Blended P/E Current Transaction(s) P/E at Initial Company Brands Acquisition Year Consideration based on FY23 Shareholding (%) Involved Acquisition (x)[1] Paid (RM) PAT[2] Acquired initial stake of 80% and Oh Media Sdn 2020 100% 2,800,000 exercised call 4.4x 3.9x
Slide 28: Summary of Add-on Acquisitions (Cont'd)
Summary of Add-on Acquisitions (Cont’d) Total Blended P/E Current Transaction(s) P/E at Initial Company Brands Acquisition Year Consideration based on FY23 Shareholding (%) Involved Acquisition (x)[1] Paid (RM) PAT[2] Acquired initial stake of 60%; still Moretify Sdn 2021 60% 1,950,000 holding call
Slide 29: Looking Ahead…
Looking Ahead... CATCHA DIGITAL
Slide 30: Digital Media
D IGI TA L MEDIA
Slide 31: Digital media advertising has been growing rapidly while traditional media struggles
Digital media advertising has been growing rapidly while traditional media companies struggle to perform in the fast-changing media landscape Malaysia Digital ADEX 2018-2028E1 (RM m) Traditional media players are seeing massive shrink in Yet more than half of ad spend goes to Meta & Google, while th
Slide 32: Catcha Digital Media to be the largest digital media group by consolidating
Catcha Digital Media to be the LARGEST digital media group by consolidating the highly fragmented sector Highly Fragmented Sector To benefit significantly from consolidation Independent Online News Portal 2 Independent Online News Portal 1 Experiential Independent marketing firm 1 Online News Prefer
Slide 33: Catcha Digital Media Overview Today
Catcha Digital Media Overview Today Brand Owners Digital Media Publishers (Customers) Acquired these 14 digital media brands To enjoy a Customer comprehensive Sales representation for leading news and lifestyle sites deals with and integrated only one suite of digital party media solutions Influence
Slide 34: Reaching half of Malaysians across all demographics
Reaching half of Malaysians across all demographics 17.6m 14.6m people followers Visit our websites on a monthly Social audience on Facebook, basis Instagram and Tiktok combined 3 Languages (Malay, English, Chinese) Wide audience coverage split by language, age and gender 34 Includes brands represen
Slide 35: Online news portals and influencer marketing platform with significant reach
Our wholly or majority-owned online news portals and influencer marketing platform are highly synergistic with significant reach Digital Media OH! MEDIA BEAUTIFUL KIMCHI DAILY THE GOODY25 MORETIFY LOK LOK NARA REPORTER* WORDS Picture 2 Influencer Picture 25 Marketing Platform ITTIFY 2.1M 4.3M 1.8M 1
Slide 36: One-stop online-to-offline digital media solutions
Doubling down to offer a one-stop online-to-offline digital media solutions offers better value and convenience to customers Brand Owners Digital Media Publishers (Customers) Acquired these 14 horizontal lifestyle digital media brands Expanding into … (1) Industry verticals • LOI Stage - New Online
Slide 37: Digital Media M&A Approach
Digital Media M&A Approach: Accretive M&As and partnerships to broaden our advantage as the leading one-stop digital media solutions provider Combo of Build, Acquire, Expand via M&A and Expand via M&A Expand via M&A Convert & Partner Partnerships Digital Media Publishers Digital Media Publisher Digi
Slide 38: Former Owner's Testimonials
Former Owner’s Testimonials: Tremendous value creation from consolidation Shahzeeq Shahren Tan Guan Sheng CEO & Co-Founder of Nara Media CEO & Co-Founder of ITTIFY “In 2020, iMedia acquired a majority stake in Nara Media Sdn Bhd. The company has seen tremendous growth post-investment, “ITTIFY has gr
Slide 39: We are here now… Phase 1 Phase 2 Phase 3
Digital Media We are here now… PHASE 1 PHASE 2 PHASE 3 We build and grow digital We invest in, acquire and scale To go regional once Malaysian companies great entrepreneur-led digital and market is dominated, replicating software businesses to benefit Catcha’s success in regional from scale and stre
Slide 40: Software
SOFTWARE
Slide 41: Software: Asset-light B2B software businesses with proven track record
Software: Asset-light B2B software businesses with proven financial track record and a management fit Organisational Business Characteristic Financial Characteristic Investment Characteristic Characteristic ▪ Business-to-Business offering ▪ High cash conversion ▪ Solid margins ▪ Strong management ▪
Slide 42: In talks to acquire a controlling stake in banking loan software
In talks to acquire a controlling stake banking loan software • Provides end-to-end loan origination software on a single integrated platform to financial institutions across the world • Clients use its software to power its day-to-day loan operations and automate their workflow from prospecting, KY
Slide 43: We're just getting started.
‘e ms 4 We're jus® getting started. 43
Slide 44: Appendix: Financial Performance (Q1'FY2024)
Appendix: Financial Performance (Q1’FY2024)
Slide 45: Catcha Digital Berhad Financial Performance
Catcha Digital Berhad Financial Performance Catcha Digital Berhad Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 (“CDB”) RM'000 RM'000 RM'000 RM'000 RM'000 Net Revenue 2,926 6,957 7,190 6,500 8,783 Cost of Sales (816) (1,970) (2,439) (2,144) (3,013) Gross Profit 2,110 4,987 4,752 4,356 5,770 Net Operating Expen
Slide 46: Thank you
Thank you Catcha Digital Berhad Co-Labs Coworking The Starling Plus, Lot PT297, Level 4 Uptown 7, Jalan SS 21/39, Damansara Utama, 47400 Petaling Jaya, Selangor For enquiries, please email [email protected]
Catcha Digital Berhad — Investor Presentation (July 2024) on 6ix