Highland Transcend Partners I Corp
Highland Transcend Partners I — SPAC Merger (September 2021)
78 slides from Highland Transcend Partners I's SPAC merger presentation, Sep 9, 2021
Slide 1: Discussion Materials
Discussion MaterialsJanuary 2020
Slide 2: Disclaimer: Cautionary Notes
Disclaimer Cautionary NotesThis presentation (“Presentation”) is for informational purposes only. This Presentation shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such of
Slide 3: Disclaimer: Use of Data
Disclaimer Use of DataThe data contained herein is derived from various internal and external sources. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any projections or modeling or any other information contained herein. Any data
Slide 4: Speakers Today
Speakers Today Andrew Vagenas Co-Founder & CEO Ian Friedman CEO Ash Mehra Chief Information Officer Chief Growth Officer Adam Rodgers Dan Bennett Chief Marketing Officer
Slide 5: Highland Transcend Partners: Experienced and Differentiated Team
$3.8 BillionInvested 123Investments 64%Gross IRR 29 IPOs &59 M&A Exits 115 Boards(24 Public) 16 YearsTogether on Average Highland Transcend Partners: Experienced and Differentiated Team CHAIRMANGP at HighlandCEO of Lycos (IPO, $5.5B acq) Bob Davis CEOFormer Co-Head of Goldman Sachs Investment Partne
Slide 6: Reminder: Our Thesis
Reminder: Our Thesis Visionary management team open to advice and strategic help 1 Potential addressable market is large with attractive dynamics 2 Company takes innovative approach to a better solution for customers 3 Key strategic assets provide a sustainable competitive advantage 4 Company has le
Slide 7: Packable Operates in the 1P and 3P eCommerce Ecosystem
Packable Operates in the 1P and 3P eCommerce Ecosystem In 1P, brands sell directly to the online platform which then sell to consumers:Brand = Wholesale SupplierOnline Platform = Retailer Defining 1P vs 3P First-Party Relationship (1P) Third-Party Relationship (3P) In 3P, the brands sell directly to
Slide 8: eCommerce Evolution: 3rd-Party Marketplaces and Amazon Sales
Source: Forrester, Amazon investor materials 2000 $2.8bn eCommerce Evolution Launch of 3rd-PartyMarketplace 2020 $320bn 3rd-Party Marketplaces Represent More Than 60% of Amazon's eCommerce Sales eCommerce Sales
Slide 9: The Marketplace Transformation
2010 The Marketplace Transformation 2022 3rd-Party Marketplaces are now 30% of US eCommerce $165bn ~$1tr and many more… Source: Forrester, eMarketer eCommerce Sales
Slide 10: Brand Choice Proliferation Without Packable
Brand Choice Proliferation Without Packable Wholesale e-Commerce Platform Distributor Direct-to-Consumer 1P 3P
Slide 11: Brand Choice Proliferation With Packable
Brand Choice Proliferation Without Packable With Packable Wholesale e-Commerce Platform Distributor Direct-to-Consumer 1P Wholesale e-Commerce Platform Distributor Direct-to-Consumer 3P 1P 3P
Slide 12: Our Thesis on Packable
Our Thesis on Packable Leading Multi-Marketplace eCommerce Enablement Platform Solving Real Pain Points for Brands to Navigate Complex but Massive Marketplace Opportunity Confidence in Exceptional, Founder-Led, Proven Management Team Sticky Blue Chip Brand Relationships Growing Influence and Ownersh
Slide 13: Strong Competitive Metrics
Source: Webretailer, Company financials1Amazon sourced from Webretailer for Pharmapacks (seller of record), measured by number of reviews; 2As of July 1, 2021 Largest 3rd Party Seller on Amazon1 >$450mm 2021E Revenue 147% Net Revenue Retention 2020A(Zero Enterprise Logo Churn) Massive Data Set:~75mm
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Slide 16: Our Story
Our Story Packable is a leading data-driven platform providing Large CPGs, digitally native brands, and distributors with the connections, insights, and services needed to enable online marketplace sales Brick-and-mortar pharmacy Logistics division formed & powered by technology-driven proprietary p
Slide 17: Packable Operates in the 1P and 3P eCommerce Ecosystem
Packable Operates in the 1P and 3P eCommerce Ecosystem In 1P, brands sell directly to the online platform which then sell to consumers:Brand = Wholesale SupplierOnline Platform = Retailer Defining 1P vs 3P Packable’s Benefits to… Online Marketplaces Brands First-Party Relationship (1P) Third-Party R
Slide 18: Brands Have Traditionally Struggled to Navigate the Online Marketplace
Brands Have Traditionally Struggled to Navigate the Online Marketplace Challenges for Brands Pricing and Inventory Forecasting Brands often lack the data and insights to maximize revenue and optimize pricing and inventory, especially across multiple marketplaces Customer Experience Brands are genera
Slide 19: Packable Manages Across the Entire eCommerce Ecosystem
Packable Manages Across the Entire eCommerce Ecosystem Brands Consumer Marketplaces2 Exclusive1 Marketplace StrategyNever Lost a Large CPG Brand 1Exclusivity limited to 3P strategy within Packable product portfolio 2Currently integrating with Kroger, expected to launch in 2H 2021
Slide 20: Packable Manages Across the Entire eCommerce Ecosystem
Packable Manages Across the Entire eCommerce Ecosystem Packable optimizes online marketplace performance on behalf of its clients, driving eCommerce sales while also relieving brands and distributors of the burdens of fulfillment and customer management Large CPG companies, digitally native brands,
Slide 21: Packable Creates Immense Value for its Brand Partners
Packable Creates Immense Value for its Brand Partners Pricing & InventoryData-driven pricing algorithmsData-driven inventory forecasting Creative and advertising strategyAesthetic, compelling imageryFull media and marketing designEnhanced content and storefront design End-to-end OwnershipSeller of r
Slide 22: Packable Creates Immense Value for its Brand Partners
Packable Creates Immense Value for its Brand Partners 3 5 1 4 2 6 Pricing & InventoryData-driven pricing algorithmsData-driven inventory forecasting Creative and advertising strategyAesthetic, compelling imageryFull media and marketing designEnhanced content and storefront design End-to-end Ownershi
Slide 23: Packable Snapshot
Packable Snapshot Note: All metrics as of 7/1/2021 unless otherwise stated1 Amazon sourced from Webretailer for Pharmapacks (seller of record), measured by number of reviews2 Includes Kroger; currently integrating with Kroger, expected to launch in 2H 20213 Rule of 40 calculation based on revenue gr
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Slide 25: Key Investment Highlights
Key Investment Highlights LEADING TECHNOLOGY-LED MARKETPLACE ENABLEMENT PROVIDER 2 STRONG VALUE PROPOSITION LEADS TO SIGNIFICANT CUSTOMER LOVE 3 PACKABLE HAS CEMENTED STRONG MOATS DRIVEN BY DATA ADVANTAGE, OPERATIONS EXCELLENCE, AND DEEP RELATIONSHIPS ACROSS THE ECOSYSTEM 4 ATTRACTIVE UNIT ECONOMICS
Slide 26: Packable Benefits from Brand and Marketplace Tailwinds
Packable Benefits from Brand and Marketplace Tailwinds While Historically Unpenetrated Within Ecommerce, Consumer Products Are Expected To Continue To See Increased Online Penetration As Marketplaces Continue To Proliferate, A 3P Ecommerce Strategy Is Mission Critical For Brands’ Survival Digitally
Slide 27: Mass Proliferation of eCommerce Marketplaces
There Has Been a Mass Proliferation of eCommerce Marketplaces 1 Total US eCommerce Sales ($B) Source: Channel Advisor, Forrester (2021 Online Marketplace Tracker, Global, published March 2021; 2021 Online Retail Forecast, US, published June 2021); Amazon investor materials; press search; expert inte
Slide 28: A 3P Strategy is Increasingly Critical for Brands' eCommerce Growth
A 3P Strategy is Increasingly Critical for Brands’ eCommerce Growth Brands Will Continue to Rely on a 3P Strategy A 3P Approach Overcomes Strategic and Operational Challenges Common Among Large CPG Companies and Digitally Native Brands Large CPGs are typically not equipped to sell direct, but are al
Slide 29: Consumer Products Expected to See Increased eCommerce Growth
While Historically Unpenetrated in eCommerce, Consumer Products Are Expected to See Increased Growth eCommerce revenue as a percent of total retail revenue in the U.S. as of May 2021, by Product Category Source: eMarketer Transition to 3P partnerships, alleviates the historical barriers F&B and HPCB
Slide 30: Digitally Native Brands Growing 3.6x Faster than Large CPG Brands
2016 to 2020 CAGR 2016 to 2020 CAGR Total CPG Digitally Native Brands Love Packable Source: Nielsen data from McKinsey article “What got us here won’t get us there: A new model for the consumer goods industry” The Consumer Discovery Journey is ChangingThe path to product purchase for consumers is sh
Slide 31: Leading eCommerce Tech-Enablement Platform
Leading eCommerce Tech-Enablement Platform 1 Webretailer as of June 30, 20212 Includes Kroger; currently integrating with Kroger, expected to launch in 2H 20213 Subject to certain exceptions and exclusions (e.g., hazmat products)412-month trailing average as of June 30, 2021; figure includes orders
Slide 32: Marketplace Enablement Across the Commerce Lifecycle
Maintain and update product catalogManage assortment and sales across multiple marketplacesOptimize pricing by product and channelDevelop promotional strategies to drive incremental sales Marketplace Enablement Across the Commerce Lifecycle Marketing Execute tailor-made campaigns across channelsEnha
Slide 33: Value to Brands, Marketplaces and Consumers
Large CPG Digitally Native Brands Distributors Online Marketplaces Consumers Alternative, efficient eCommerce channel Attractive conversion rates due to improved product placement, marketing, pricing parity across marketplacesTest-and-learn capabilities to improve product offeringUnified 1P / 3P str
Slide 34: Partnering With Large CPGs and Digitally Native Brands
Partnering With Both Blue-chip Large CPGs and Digitally Native Brands Large CPG Increase presence within existing large brand partnerships and win new ones Partner with independent digitally native brands Strategy 2022E % Growth 72% 126% Distributor partnerships are gateways to new independent brand
Slide 35: Why Packable is Best Positioned to Win With Digitally Native Brands
Why Packable is Best Positioned to Win With Digitally Native Brands Superior Margin Equity Stakes Data Advantage Real time insights to consumer purchase behaviorQuickly detect and predict what brands and SKUs will be most successfulWe can pick the market and category winners Digitally Native Brands
Slide 36: Packable has Built Extensive Relationships with Leading Brands
Packable has Built Extensive Relationships with Leading Brands Digitally Native Brands…and more! 3
Slide 37: Deep Affinity Across the eCommerce Ecosystem
Deep Affinity Across the eCommerce Ecosystem Source: Customer interviews “The partnership that you get and the expertise you get…the commitment to marketing and making your items discoverable, it is priceless.” “It is operationally very difficult to do this right but they have mastered it. They were
Slide 38: Customer Case Study: How We Scale Our Large CPG Partners
The challengeA Large CPG was seeking a strategic partner to exponentially increase its Amazon presence while protecting brand equity and improving consumer experienceOur formulaContent Management: Established 3P focus list to optimize and improve consumer experience with thousands of content edits P
Slide 39: Ethique Case Study: International Digital Brand Entering U.S.
Packable's Value PropositionCash Investment5% of purchase orders in marketing ad spend (Amazon, promotions, Facebook)Dedicated LaborEstimated 150 hours of creative/marketing for initial launchEstimated 1,650 additional hours to launch new products, analyze market data and devise/execute marketing pl
Slide 40: Packable Creates an Ecosystem of Compounding Advantages
Packable Creates an Ecosystem of Compounding Advantages Increased Demand Curated & Personalized Merchandising Better Shopping Experience BroaderData Insights Wider Selection of SKUs from New and Existing Brands Compounding effect through feedback of customer data reinforcing data driven decision mak
Slide 41: Why Marketplaces See Packable as a Valuable Partner
Why Marketplaces See Packable as a Valuable Partner Enhance Marketplace Selection Helps bring an assortment of new products to the marketplace while solidifying the perception of the “everything store” Ease of Partnership Supporting scaled players like Packable ensures the integrity of the marketpla
Slide 42: Data Analytics Driving Results for Brands
Data Analytics Driving Results for Brands 4 Data Analytics Driving Results for Brands DATA Packaging Selling Lysol in packs of 3Selling shaving cream in 3.4 oz vs 7oz VS Audience Customization Helping brands create customized consumer audiences Pricing Optimize pricing via our pricing algorithm to d
Slide 43: Logistics Platform Designed for Scale
Three box types optimized for automation and sustainable packaging aligns with the Conscious Consumerism ideology National Scale & ReachGuaranteed 2-day shipping1 across the continental U.S.31k+ SKUs and avg. 40k orders2 fulfilled and shipped per day directly by PackableProprietary Automation and Fu
Slide 44: Attractive Unit Economics
Attractive Unit Economics Historical and Projected Gross Margin Performance (% of Total Revenue) Historical Margin Drivers:Movement to higher margin large brand / digitally native brands and away from lower margin distributor segmentFuture Margin Drivers:Continued sales mix shift to enterprise and d
Slide 45: Visionary, Founder-led Management Team
Visionary, Founder-led Management Team Andrew Vagenas Co-Founder & Chief Executive Officer Chris Pfeiffer Chief Operating Officer Andreas Schulmeyer Chief Financial Officer Head of Capital Markets Danny Moses Dan Bennett Chief Marketing Officer Ash Mehra Chief Information Officer 6 A Merri Ghazaryan
Slide 46: Directors, Advisors, and Investors
Directors, Advisors, and Investors Senior Vice President, eCommerce, Digital & Ventures Arjun Purkayastha Charlene Lim Jay Sammons Yue Bonnet SVP, Legal, eCommerce, VMS, & Greater China Managing Director, Head of Global Consumer, Media, & Retail Principal Sergio Pupkin Chief Growth & Strategy Office
Slide 47: Ian Friedman and Dan Nova: Proven Advisors to Cutting-Edge Companies
Ian Friedman and Dan Nova: Proven Advisors to Cutting-Edge Companies Ian Friedman CEO Dan Nova CIO Former Co-Head of Goldman Sachs Investment Partners, Growth Equity Team Previous experience at Bain Capital and BCG Holds an M.B.A. from Stanford Graduate School of Business General Partner at Highland
Slide 48: Multiple Strategies to Sustain Long-term Growth
Multiple Strategies to Sustain Long-term Growth Multi-Marketplace Expansion Robust Pipeline for Brands Marketing & Media Services Data & Analytics DTC-in-a-box Majority & Minority Brand Ownership Near-Term Growth Drivers Mid-Term Growth Drivers 7
Slide 49: Channel Growth Opportunity
Channel Growth Opportunity Marketplace Partners1 Revenue by Marketplace2 One of few platforms with strong relationships across a diversified set of leading marketplace platforms “Packable has figured out the eCommerce model and has double clicked on their processes…they’ve earned customer trust and
Slide 50: Our Brand Acquisition Strategy Creates a Long-term Competitive Advantage
Our Brand Acquisition Strategy Creates a Long-term Competitive Advantage Selected Digitally Native Brand Partnerships Key Criteria Analytically-driven insights from our ~75mm consumer datapoints help determine the following criteria for our brand acquisition strategy:Identify new and high-growth con
Slide 51: Large Investments in Supply Chain
We Continue to Make Large Investments in Supply Chain New distribution centers and automation for Seller Fulfilled Prime and Fulfillment by AmazonPlanned next day coverage for ~46% US populationPlanned 2-day coverage for ~92% US population Expanding our national footprint Shipment concentration Q1 2
Slide 52: New Branding Preview
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Slide 54: ; itabl
; itabl Accelerating Best-in- race e g-term (‘ABLE growth class brand sea _ profile retention leverage
Slide 55: Historical and Forecasted Revenue Overview
Historical and Forecasted Revenue Overview ‘18A – ’20A CAGR: 36% Historical and forecasted significant revenue growth driven by:Strong net revenue retention provides starting point for strong revenue growthNew contracts rolled out for large brands and digitally native brandsFurther expansion of serv
Slide 56: Packable has Historically Performed Well
Packable has Historically Performed Well 51%2014-2019 Revenue CAGR2 Quarterly YoY Growth 47%1 33%1 COVID-19 Revenue growth accelerated pre COVID as investments were made to alleviate historical capacity constraints 1 2 3 2-yr Actual CAGR: 32% 27% COVID-19 was an accelerant, particularly benefiting Q
Slide 57: Unpacking Forward Revenue Growth
Unpacking Forward Revenue Growth 2 1 4 3 37% growth from existing brands onboarded in 2020, which is in line with historical growthKey strategic and technology initiatives launched in 2021 and 2022 will accelerate growth 2 2H 2021E growth driven by core business growth, plus the impact of three stra
Slide 58: Historical and Forecasted Gross Profit Overview
Historical and Forecasted Gross Profit Overview ‘18A – ‘24E CAGR: 40% Historical Margin Drivers :Movement to higher margin large brand / digitally native brands and away from lower margin distributor segmentFuture Margin Drivers:Continued sales mix shift to enterprise and digitally native brands, aw
Slide 59: Model Summary
Model Summary ($ mm) 2018A 2019A 2020A 2021E 2022E 2023E 2024E Long Term Targets Revenue $202.0 $246.3 $373.3 $456.2 $707.2 $1,028.2 $1,335.3 % YoY Growth – 22.8% 51.5% 22.2% 55.0% 45.4% 29.9% Total Gross Profit $86.9 $112.2 $176.7 $206.6 $323.9 $483.8 $650.5 % Margin 43.0% 45.6% 47.3% 45.3% 45.8% 4
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Slide 61: Key Transaction Terms
Key Transaction Terms Source: Packable Company FinancialsNote: Assumes a nominal share price of $10.00 per share. Pro Forma Ownership assumes $70mm PIPE and $110mm pre-SPAC merger private convertible note with no secondary sales and excludes impact of warrants, earnout to existing Packable sharehold
Slide 62: Transaction Overview
Transaction Overview Source: Packable Company FinancialsNote: Assumes a nominal share price of $10.00 per share. Pro Forma Ownership assumes $70mm PIPE and $110mm pre-SPAC merger private convertible note with no secondary sales and excludes impact of warrants, earnout to existing Packable shareholde
Slide 63: Framing the Peer Set for Packable
Framing the Peer Set for Packable Source: Company Management, IBES; Market data as of 27-Aug-2021Note: Figures for peer comparables represent medians.1 Represents 2022E-2023E growth due to inventory shortage in 2021E overstating 2021E-2023E growth.2 Implied metrics at Transaction Enterprise Value of
Slide 64: Valuation Benchmarking
Valuation Benchmarking 1 1 Source: IBES; Market data as of 27-Aug-20211 Implied metrics with a Transaction Enterprise Value of $1.550bn. 2 Adjusted using CY2021E – 2023E CAGR. 3 Packable adjusted using 2022E-2023E growth due to inventory shortage in 2021E overstating 2021E-2023E growth. EV / 2022E R
Slide 65: Operational Benchmarking
Operational Benchmarking 1 1 1 Source: Company Management, IBES; Market data as of 27-Aug-20211 Packable represents 2022E-2023E growth due to inventory shortage in 2021E overstating 2021E-2023E growth. CY2021E – CY2023E Gross Profit CAGR CY2022E Gross Margin 15 % CY2021E – CY2023E Revenue CAGR Media
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Slide 68: Sources and Uses
Sources and Uses Source: Packable Company FinancialsNote: Assumes a nominal share price of $10.00 per share. Pro Forma Ownership excludes impact of warrants and earnout to existing Packable shareholders. 1 Net of transaction fees of $50M, which includes 3.5% fee on PIPE and convert and estimated $31
Slide 69: Implied Ownership and Returns at Various Prices
Implied Ownership and Returns at Various Prices Note: For details on transaction overview and structure, please see pages 63-64 in this presentation. Assumes no HTP redemptions. Warrant dilution calculated using Treasury Stock Method. 1 Includes public common shares and public warrants. 2 Assumes Co
Slide 70: Illustrative Fulfillment Level Economics for Marketplace Business
Illustrative Fulfillment Level Economics for Marketplace Business Contribution margin uplift driven by:Expanding AOV: Increase in AOV reflected in the declining Fulfillment Costs as % of revenue – AOV increases as consumers buy larger pack sizes and spend on higher dollar itemsDecreasing Product COG
Slide 71: Adj. EBITDA Margin Bridge 2021E to 2024E
Adj. EBITDA Margin Bridge 2021E to 2024E Adj. EBITDA1 Margin 12.5% 10.2% 6.2% 1 See Adj. EBITDA reconciliation on pg 72
Slide 72: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 2018A 2019A 2020A 2021E 2022E 2023E 2024E Net Loss ($28.9) ($39.3) ($113.9) ($123.1) ($102.6) ($21.3) $45.2 % Total Revenue (14.3%) (16.0%) (30.5%) (27.0%) (14.5%) (2.1%) 3.4% Interest Expense $3.8 $4.5 $16.2 $4.1 $2.8 $3.4 $3.3 Franchise Taxes $0.0 $0.1 $0.0 $0.1 $0.1
Slide 73: Risk Factors
Risk Factors All references to the “Company,” “Packable,” “we,” “us” or “our” in this presentation refer to the business of Packable Holdings, LLC and its subsidiaries. The risks presented below are certain of the general risks related to the Company's business, industry and ownership structure and
Slide 74: Risk Factors (cont'd)
Risk Factors (cont’d) Operating Risks (Cont’d)If we do not successfully optimize, operate and manage the expansion of the capacity of our fulfillment centers, our business, financial condition, and results of operations could be harmed.Our business may be adversely affected if we are unable to provi
Slide 75: Risk Factors (cont'd)
Risk Factors (cont’d) Legal and Regulatory risks Failure to comply with legal and regulatory requirements could adversely affect our results of operations.We may be subject to general litigation, legal proceedings, regulatory disputes and government inquiries.Safety, quality, and health concerns cou
Slide 76: Glossary
Glossary Term Definition Digitally Native Brands A brand that primarily focuses on eCommerce channels such that most or all of its sales to end consumers are generated and occur online, or that we do not otherwise identify as a Large CPG Distributors Enterprises that buy consumer brands and sell the
Slide 77: PACKABLE
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Slide 78: Thank you.
Thank you.A L L Y O U R D A I L Y N E E D S
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