Slide 1: FY 19/20 Annual Results
FY 19/20 Annual Results June 2020 150.HK
Slide 2: Financial Results Summary
Financial Results Summary Hypebeast Ltd. 150.HK FY19/20 Annual Result Highlights +15% +10% Digital Media & Creative Agency E-Commerce $751m HK$278M HK$474M 800,000 YOY +12% E-Commerce Revenue Digital Media & Creative $672m in HKD Agency Revenue in HKD YOY +75% 37% +21% 600,000 36% 51% 16.8M $385m Gr
Slide 3: COVID-19
FY19/20 Annual Results 3 COVID-19
Slide 4: COVID-19 – Our Initial Response
COVID-19 COVID-19 – Our Initial Response Supporting Brand Partners, Adapting Operations to Cost savings & Financial Customers & Employees Continue Service Flexibilities • Maintain supportive and understanding • HBX warehouse remained operational • Strengthen treasury and increase financial stance wh
Slide 5: COVID-19 – Core Business Impacts
COVID-19 COVID-19 – Core Business Impacts Digital Media Our Responses • Demand impact to advertisement by certain • Benefit from existing strategy to attract more hard-hit segments (Fashion, Retail) “Non-Endemics” clients (Technology, Alcohol, Luxury Sportswear Gaming) • Offer case-by-case rate card
Slide 6: Digital Media Strategy: Expansion into Non-Endemic Territory
COVID-19 Digital Media Strategy Expansion into Non-Endemic Territory FY20 Endemic Brand Partners FY20 Non-Endemic Brand Partners Core Sectors: Luxury, Fashion, Sportswear Core Sectors: Alcohol, E-Gaming, Technology, Automobile 6
Slide 7: COVID-19 – Core Business Impacts Cont'd
COVID-19 COVID-19 – Core Business Impacts Cont’d Feb - Mar 2020 Daily Sales vs FY20 Annual Daily Sales Average E-Commerce 100% • Slower than normal sales during initial COVID-19 outbreak reflected in poorer sales in the 2H • COVID-19 affected Landmark Hong Kong Store sales 50% • Delayed of Manhattan
Slide 8: Digital Media & Creative Agency
FY19/20 Annual Results Digital Media & Creative Agency 8
Slide 9: Digital Media Segment
Digital Media & Creative Agency Digital Media Segment Delivering Tailored 360° Campaigns for Brand Partners Creative Agency Digital Media .zh .cn .jp .kr Creative Direction Marketing Strategy across the entire product Display Banner Ads Website & App Product / Influencer Collaboration Influencers, D
Slide 10: User and Viewership Growth Network
Digital Media & Creative Agency User and Viewership Growth Network FY19/20 Aggregate Unique Visitors FY19/20 Aggregate Social Media Following 17 25 24 16 (millions) (millions) 23 15 22 14 21 13 20 Apr Jul Oct Jan Apr Jul Oct Jan Aggregate Unique Visitors/Month* Aggregate Social Media Following Mar 2
Slide 11: Digital Media & Creative Agency Revenue
Digital Media & Creative Agency Digital Media & Creative Agency Digital Media & Creative Agency Revenue Digital Media & Creative Agency Revenue Gross Profit $474m $262m $275m 500,000 YOY +10% 280,000 YOY +68% $431m YOY +65% $211m YOY -23% 375,000 210,000 $260m $156m YOY +73% HKD (000) HKD (000) 250,
Slide 12: Digital Media – Revenues by Region
Digital Media & Creative Agency Digital Media – Revenues by Region +10% FY18/19 FY19/20 HKD431m HKD 474m Revenue in Revenue in Region HKD, m % of Revenue HKD, m % of Revenue Change in % United States 171 40% 187 40% 9% The People’s Republic of China 83 19% 101 21% 22% Hong Kong 45 10% 41 9% (8%) Uni
Slide 13: Project Highlights
Project Highlights 13 HYPEBEAST
Slide 14: 2H19/20 Campaign Highlights
Project Highlights 2H19/20 Campaign Highlights Audi A1 Sportback EPIC MODE ON Event Region: APAC Services: Event, Video, Photography, Media Hypebeast Branded Branching into APAC regions & Non- Endemic territory $ HK$500K+ Contract Revenues 8 Hours spend on shooting & post production work 3 2 Videogr
Slide 15: FY20 Project Highlights
Digital Media & Creative Agency FY20 Project Highlights Creative Agency & White Label Projects Still Key to Growth The Glenlivet 2019 Samsung – Galaxy Fold 5G Region: US Region: APAC (KR) Services: Talent, Event Services: Creative Direction, Photography, Video, Media Category: Hypebeast Branded Cate
Slide 16: E-Commerce
16 FY19/20 Annual Results E-Commerce
Slide 17: HBX E-Commerce and Brand Acquisition Journey
E-Commerce HBX is our E-Commerce store first established in 2012 as the retail extension of Hypebeast Ltd., since then it has grown and become the go to shopping destination for the fashion forward. HBX stocks over 250 highly curated streetwear, luxury and contemporary brands, shipping globally to m
Slide 18: E-Commerce Revenue
E-Commerce E-Commerce Revenue E-Commerce Revenue E-Commerce Revenue Gross Profit $278m 300,000 160,000 $139m YOY +15% $137m YOY +38.8% $141m $242m YOY -3.4% YOY +93% 225,000 120,000 $100m HKD (000) HKD (000) 150,000 $125m 80,000 YOY +86% $67m 75,000 YOY +31% 40,000 $51m 45% 37% 47% 46% 46% 0 0 FY14/
Slide 19: Key Growth Drivers for HBX
E-Commerce Continued Dedication to HBX as a World Class Destination, the “Hypebeast” of E-Commerce to Drive Next Stages of Growth Key Growth Drivers HBX Mens & Women’s Segment Revenue Split 1. Collaborations Men's Women's Kid's 100% • Continue driving unique Collaborations as key product differentiat
Slide 20: FY21 Focus: Solidify Core Markets
E-Commerce E-Commerce FY21 Focus: Solidify Core Markets +15% FY18/19 FY19/20 HKD242m HKD 278m Revenue Revenue Change Boost Operational & Regional Targeted Improved Inventory Region HKD, m % HKD, m % % Logistical Efficiencies Marketing & Buying Management United States 51 21% 61 22% 21% Hong Kong 47
Slide 21: Investment in New Warehouse
E-Commerce Investment in New Warehouse to Improve Logistics & Efficiencies +62.8% HBX Editorial Shots HBX Product Shots Total Warehouse Capacity +58.5% Flatback Clothing (Boxed Goods) Capacity +72.8% Product Picking Product Packaging Garment on Hanger Capacity MAY 2020 Initiated Operations TSUEN WAN N
Slide 22: Landmark Physical Store Renovation
Project Highlights Landmark Physical Store Renovation Dedicated to bringing the HBX online experience offline 2X Footprint Shop Size compared to previous store FEB 2020 Soft opening LANDMARK Shopping Mall in Central, Hong Kong HYPEBEANS Coffee Shop activation 22
Slide 23: Introducing HYPEBEANS
Project Highlights Introducing HYPEBEANS HYPEBEANS is a communal destination serving quality coffee and Hypebeast’s first step into the realm of culinary culture. HYPEBEANS is a token of friendship between Kevin Ma and world-renowned barista Hiroshi Sawada (Sawada-san is the first Asian World Champi
Slide 24: Financial Information & Ratio Summary
Financial Information Financial Information & Ratio Summary HKD’000 FY17/18 FY18/19 % Change FY19/20 % Change Profit & Loss Revenues 385,079 672,192 75% 751,367 12% Gross Profit 203,885 335,354 64% 379,278 13% Gross Profit Margin 53% 50% 50% Selling & Marketing Expense 83,643 152,719 83% 158,831 4%
Slide 25: Websites, Links & Contact
Appendix Websites, Links & Contact Digital Media Creative Agency Corporate Info http://hypebeast.ltd http://www.hypebeast.com https://hypemaker.co E-Commerce Contact http://www.hypebae.com investors@hypebeast.com https://hbx.com https://popbee.com 25
Slide 26: Q&A Thank you.
Q&A Thank you. Disclaimer This Presentation contains certain information of Hypebeast Limited, which may include its subsidiaries, affiliates, related entities, employees (“Hypebeast”), and is intended to be used solely for your personal reference. It does not, in any way or manner, constitute an in