Axiata Digital ADS Overview Analyst Briefing YoY Brand Competitor Benchmark 3 May 2019
AXIATA DIGITAL Axiata Digital: The Journey so Far… 2013 2014 2015 2016 2017 2018 2019 2020 Phase I: Inception and Experimentation Innovations and partnerships • Experimentation on businesses/models • Investments for learning • Phase II: Growth and Expansion Incubate learnings and launch new biz • Refine business model and scale up • Expansion across footprint • Phase III: Value Capture Synergize and create value • Attract new strategic/financial investors • Monetization and exits • 2
AXIATA DIGITAL Axiata Digital: Building and Operating Winning Business Models Regional Financial Largest Independent Leading Global API Services Champion Digital Agency in SE Asia Marketplace Micro-Payment Agency Practice apigateAXP (QR Payments, Bill Payments, Prepaid (Media Planning, Digital Creatives, Ad (the acceleration platform Top-ups, Street Parking, Donations) Operations, Growth Hacking) for Telco Digitisation) Micro-Lending Media Integration apigateMint (Invoice Financing, Supply Chain Credit, (Telco, AVOD, Facebook/Google) (end-to-end modern monetization platform) Working Capital Loans) Technology apigateGo Micro-Insurance (Data Consulting, Data Enrichment, (API marketplace for Short-tail Developers (Personal Accident Cover, Handset Audience Center) & Start-ups) Cover) 3
Boost your Life! 4
Malaysi Ma sia’s s Largest E-Wa Wallet with Over 4 Million Users Master Account: Use Cases Boost Wallet Cash in/Funding Top-ups Domestic P2P Payments Location-based Utilities International Remittance Services Loyalty & Rewards Gamification Passbook Cash-in/Cash-out Online & Offline Product & services Loyalty & Lending Rewards International Remittance Direct Operator Billing Exchange for Financial Services Offerings Micro- Micro- Wealth Savings Insurance Lending Management 5
Boost Ma Bo Malaysi sia 2018 Boost GTV Trend As at End April 2019 32x ~ 4.0M Users 5.4x Y-o-Y Growth (2018) ~ 80K Merchant Touchpoints 21x Y-o-Y Growth (2018) ~ 32x Growth in Transaction Value ~ 5.7x Growth in GTV/User Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr 2019 2018 6
Bo Boost In Indones esia 2018 Largest merchant base in Indonesia Merchant as a service solution 24x 500K+ Merchant Touchpoints Boost Merchant Solutions B2B Payments B2B Finance Digital Shop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2018 2019 7
AXIATA DIGITAL Lending and Insurance: Products Launched Micro-Insurance Micro-Lending Boost Indonesia Boost Malaysia Size: RM 500 – RM 20k; Average RM 3,500 § Malaysia # of Loans Disbursed to Date: 400 § Working Capital Zero NPL § Personal Accident Personal Accident Cover Policy for Cover Policy for Consumers Merchants 30,000 + Policies sold 12,500 Policies on a • • Size: $100 - $500; Average $300 § loyalty basis on a loyalty basis # of Loans Disbursed to Date: 1100 Indonesia § Supply Chain Handset Insurance Zero NPL RM 2 per month § • Financing premium for a 3 Cover for Merchants month cover 18,000 + policies sold Minimum Spend of RM 25 • on Boost on a loyalty basis Size: Up to RM100k; Average RM6,000 § # of Loans Disbursed to Date: 2,400 Malaysia § Distribution Partners Invoice Zero NPL § Financing *As at 28th April 2019 8
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ad ada th the “ e “Agen ency of y of th the F e Futu ture” e” Po Powered by Deep Data Assets with 280 Million Un Uniq ique Profile iles an and 200+ + Attrib ibutes Agency Technology Practice Media Planning Data Consulting Facebook Digital Creatives Data enrichment Google Ad Operations Audience Center Telco Growth Hacking AVOD Media Integration Powered by our DMP Xact 10
Industry Focu cused Approach ch Customer Profile Data • 280M profiles, 200 attributes TELCO ELECTRONICS • Telco & other data sources; audience center • High value customers • Device switchers • Media planning • Market share insights • Market share insights • Dual-simmers • Demand planning Content Intelligence • Video intelligence FMCG AUTOMOTIVE • Deep AVOD integration • Content planning • Life stage prediction (Mothers, • Car showroom/ Dealer visit Millennials) analysis • Underpenetrated reach • Advocacy marketing • Future of TV • Online targeting • E-commerce integration Digital Acquisition Platform Adparlor technology • Activation platform • FINANCIAL SERV. TRAVEL • Digital user acquisition • Traveller segmentation • Branch visit matrix • Travel pattern analytics (route, Online Offline Attribution • Brand affinity frequency, type) • Scoring/ validation Suburb/ rural reach • Geo-fence targeting • Online to offline attribution • OIL & GAS RETAIL • Location-based targeting • Convenience store shopper • Shopper segmentation segmentation Deep e-commerce Intergration • Online to offline attribution • Location-based targeting • 11street (7M unique visitors) • Store visit matrix • Brand affinity Boost (3M registered users) • 11
ada ad ada: 2018 at a Glance ce Launched ‘Agency Major Partnerships of Future’ Google, Attracted Industry iflix, Outcomes, Hooq, Talent Creative, FreedomPop Programmatic, Across Agency, Intelligence Machine Outcomes and DaaS AVOD Analytics Practice Won Big Clients DBS, Yoodo, Celcom, Watson, By Year-end: Samsung,… Regional footprint in Awards Won Total of 9 countries Google, DMA Strategically positioned Top Line Growth: Integrated Agency, Analytics and Outcomes Media Spends 2.0x Unique approach Net Revenues 2.3x of Product marketing + Services Re.CON launch 130% growth Regional platform in Agency practice (Direct) NR Core Values in 5 markets Customer Obsession + People Centricity On track to be PAT positive in 2019 12
BE FUTURE READY NOW Born out of Telco. Bred for the Cloud. Build to Last.
Te Telco Disintermediation in a Fragmented Landscape ICPs need to partner with multiple API providers, in each geography/country Internet Content Providers (ICPs) & Merchants Point Solutions Fragmented API Layer Messaging/Voice API DCB APIs Non-MNO Specific API Management players Mobile Network Operators (MNOs) MNOs need help with digitization 14
We enable Digital Merchants to find the right customer at the right time and the right place Targeted Anti Global Digital Increased Conversion/ Acquisition Fraud Reach Trust Retention Rapid Enable New Services Top-Tier Content Monetization Digitization and Business Model We enable MNOs to unlock new sources of revenue ONE PLATFORM CONNECTED TO 110+ MNOs AND REACHING OVER 3.5B MOBILE USERS 15
APIGATE Ap Apig igate: : 2018 Hig ighlig lights Business Consolidation Partnerships People Products/ Technology 2017 2017 2017 2017 3.3x 1.9x 5.7x 4.8x 2018 2018 2018 2018 Gross Transaction Value Merchants Employees API Calls New Product Roadmap: • 2017 2017 end-to-end frictionless 4.8x 11.0x 2018 2018 payment with mobile wallet integration Net Revenue MNOs Consolidation under 1 • 2017 2018 Tier-1 Brands 16
Axiata Digital Corporate Development YoY Brand Competitor Benchmark 17
AXIATA DIGITAL Axiata Digital: Investment from Mitsui & Co. Key Terms Key Terms • Ordinary Shares Investment • Primary issuance for capital injection into Structure the Company Pre-Money • USD 500 million (enterprise value) Valuation Mitsui & Co. • Strategic Minority Stake Stake Axiata Digital • Business growth, working capital, capital Services Sdn Bhd Use of Funds expenditure • Mitsui to appoint one Board observer Board • Axiata continues to appoint and control the Board • Mitsui to second personnel to ADS for Collaboration business collaboration 18
AXIATA DIGITAL Axiata Digital: Digital Ventures Spin-Off Key Terms • Non-controlling Preference Shares Gordian Capital Investment • To be held by Axiata Group Subsidiary Singapore Pte. Ltd. Structure • Fund Co has ability to bring in additional (Fund Manager) investors into the Fund Preference Shares Transfer • USD 140 million Value Pegasus 7 Ventures • Gordian Capital is Asia’s leading Pte. Ltd. independent and institutionally-focused (Fund Co) fund manager with over USD 2.2 billion AUM Fund on its platform Manager • Pegasus 7 Ventures is a sidecar fund of Axiata Digital Gordian Capital solely focused on Services Sdn. Bhd managing the spun-off assets Assets • Axiata Group continue to extract Transferred Synergies synergistic value from the DV portfolio with DV • Axiata Group to appoint Board Observers companies on the DV companies’ Board where applicable 19
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