Playboy, Inc. · NASDAQ:PLBY
Playboy — Mountain Crest Acquisition — SPAC Merger (October 2020)
42 slides from Playboy's SPAC merger presentation, Oct 1, 2020
Slide 1: Investor Presentation October 2020
INVESTOR PRESENTATION October 2020
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation (this “Presentation”) is provided for information purposes only and has been prepared to assist interested par ties in making their own evaluation with respect to a potential business combination between Mountain Crest Acquisition Corp. (“MCAC”) and Playboy Enterpr
Slide 3: Legal Disclaimer (Continued)
Legal Disclaimer (Continued) PLAYBOY 2020 3 Financial Information; Non - GAAP Financial Measures The financial information and data contained in this Presentation is unaudited and does not conform to Regulation S - X. According ly, such information and data may not be included in, may be adjusted in
Slide 4: Transaction Summary
Transaction Summary 4 PLAYBOY 2020 • Playboy Enterprises Inc. (“Playboy”) to be acquired by Mountain Crest Acquisition Corp. (“MCAC”), a publicly listed special purpose acquisition vehicle with $58.5M cash in trust • Playboy pre - money equity value of $239.2M (plus $142.1M of debt = $381.3M enterpr
Slide 5: Introductions
Introductions 5 PLAYBOY 2020 BEN KOHN Chief Executive Officer • Former partner at Rizvi Traverse, a leading entertainment - focused private equity firm • 25+ years experience managing media & entertainment companies • Superior returns generated on transactions completed at Rizvi Traverse RACHEL WEBB
Slide 6: Playboy Is a Massive Consumer Lifestyle Platform
97% GLOBAL UNAIDED BRAND AWARENESS ~ 50M GLOBAL SOCIAL MEDIA FANS 60/40 MALE/FEMALE CONSUMER BREAKDOWN LEADING MEN’S APPAREL BRAND IN CHINA 1M+ ACTIVE ECOMMERCE CONSUMERS 300% NORTH AMERICA RETAIL SPEND GROWTH IN 2019 50B+ GLOBAL PRESS IMPRESSIONS 180+ COUNTRIES WHERE WE SELL PRODUCT S GLOBAL CONSUM
Slide 7: Establish a Foundation, Build Brand and Business, Expand Holdings
PLAYBOY 2020 7 Expand Holdings Build Brand and Business Establish a Foundation Review and Clean Up $100M+ Adjusted EBITDA 5 year goal + Full strategic review + Streamlined team + Ended advertising business + Ended off - brand partnerships + Closed underperforming businesses + Built new management te
Slide 8: Growth to Date
$78.2 $131.2 2019A 2020E $11.7 $24.1 2019A 2020E Growth to Date Management has accelerated top - line revenue and EBITDA growth by executing organic and inorganic strategies. STRONG ADJUSTED REVENUE GROWTH ($MM) 1 D OUBLING ADJUSTED EBITDA GROWTH ($MM) 1 Source: Company management. 1 2019A revenues
Slide 9: Playboy's Mission
PLAYBOY 2020 9 Playboy’s mission is to CREATE A CULTURE WHERE ALL PEOPLE CAN PURSUE PLEASURE Artwork designed by Andy Warhol for Jan, 1986 Playboy cover
Slide 10: This Is Our Legacy
PLAYBOY 2020 10 PLAYBOY 2020 THIS IS OUR LEGACY For more than six decades, we’ve curated sophistication, art, music and culture. We’ve entertained. We’ve advocated for self expression and personal freedom. We've evolved, in real time, responding to and creating culture. We’ve remained critical thoug
Slide 11: Years of Cultural Relevance
PLAYBOY 2020 11 PLAYBOY 2020 67 Years of Cultural Relevance PLAYBOY X MISSGUIDED, PHOTOGRAPHER: ADAM RINDY, MODEL: GIGI VASS ALLO Content. Products. Influencers. Experiences.
Slide 12: The Pleasure Lifestyle Platform
PLAYBOY 2020 12 SEXUAL WELLNESS Intimacy, Lingerie GAMING & LIFESTYLE Digital Gaming, Hospitality, Spirits STYLE & APPAREL Fashion, Accessories BEAUTY & GROOMING Fragrance, Skincare Cosmetics Night Day We deliver THE PLEASURE LIFESTYLE PLATFORM Integrating into the habits of people around the world
Slide 13: Gaming & Lifestyle, Style & Apparel, Beauty & Grooming, Sexual Wellness
PLAYBOY 2020 GAMING & LIFESTYLE + Digital gaming + Casinos & hospitality experiences + Spirits + Home, art & music STYLE & APPAREL + Men’s & women’s apparel & accessories + 20+ fashion collabs across US, Europe & Asia + Wide retail distribution + Global fragrance for men & women + CBD - based bath +
Slide 14: Diversified Offerings Represent Massive Market
Diversified Offerings Represent Massive Market SEXUAL WELLNESS STYLE & APPAREL GAMING & LIFESTYLE BEAUTY & GROOMING Projected 2024 Market Size ▪ $388 billion 1 ▪ $1.9 trillion 2 ▪ $1.4 trillion 3 ▪ $434 billion 4 2020E Market Size ▪ $283 billion ▪ $1.3 trillion ▪ $1.2 trillion ▪ $360 billion 2020E P
Slide 15: Building Upon A Highly Profitable Model
200M INFLUENCER NETWORK REACH 3.5M ACTIVE CUSTOMERS 50M+ ORGANIC REACH 15 PLAYBOY 2020 O&O PRODUCT SALES DIGITAL SUBSCRIPTIONS LICENSING FEES accelerated & efficient product R&D higher consumer LTV lower consumer acquisition costs Multiple Monetization Models… Combined With An Owned Marketing Platfo
Slide 16: Transitioning the Business Model from Licensing to Owned & Operated
• Historically focused omnichannel licensing business model • ~70% of Playboy’s licensed products are sold online • More than 3 , 000 physical retail points of sale • 95% renewal rates with licensees, 7+ year tenured contracts • Leading Men’s Apparel brand in China; huge growth opportunity in Women’
Slide 17: Core Licensing Business Generates Massive Contracted Cashflows
$27.6 $46.7 $46.4 $47.6 $48.2 $48.5 $49.5 $47.0 2H2020 2021 2022 2023 2024 2025 2026 2027 Core Licensing Business Generates Massive Contracted Cashflows CONTRACTED CASHFLOWS ($MM) Source: Management. 1 Includes 2028 and 2029 contracted cashflows. 17 PLAYBOY 2020 • Approx. $400M of forward - booked c
Slide 18: Playboy Has Increased Its Licensing Value
PLAYBOY 2020 18 PLAYBOY 2020 Playboy H as Increased Its Licensing Value In 2018, Playboy was ranked 40th on list of the world’s most powerful brands by Licensing Global, by comparing retail sales o f licensed merchandise across all major sectors of business, from entertainment to sports, food, fashi
Slide 19: Royalty Revenue Growth and Collaborations
PLAYBOY 2020 19 PLAYBOY 2020 US and Europe royalty revenue doubled from $3M in 2018 to over $6M in 2020; territories poised for rapid growth with expanded retail presence for both licensed and new O&O products. C OLLABS Joyrich Buscemi Supreme Moschino The Kooples Philipp Plein Coco De Mer D IGITAL
Slide 20: Acquisition and Incubation Strategy
Playboy is uniquely positioned to augment its organic growth through investment and acquisitions of companies across the Pleasure Lifestyle consumer categories. ACQUIRE INCUBATE INVEST INTEGRATE Illustrative Strategic Acquisition & Incubation Targets 20 PLAYBOY 2020 Sexual Wellness Style & Apparel G
Slide 21: Yandy Acquisition Case Study
$18.4 $25.2 YTD 2019 YTD 2020 Yandy Acquisition Case Study SUCCESSFUL ACQUISITION OF YANDY SIGNIFICANT REVENUE GROWTH YTD ($MM) 1 Source: Company management. 1 YTD as of 6/30. *See non - GAAP to GAAP reconciliations at the end of the presentation. 21 PLAYBOY 2020 • Acquired in December 2019 • Ecomme
Slide 22: World-Class Management Team
World - Class Management Team Demonstrated track record of acquiring, building and growing businesses. BEN KOHN Chief Executive Officer JARED DOUGHERTY President, Global Licensing and Joint Ventures • 20+ years experience driving revenue growth and brand / market expansion initiatives across hospita
Slide 23: Financial Overview Summary
PLAYBOY 2020 23 PLAYBOY 2020 FINANCIAL OVERVIEW SUMMARY
Slide 24: Summary Financial Overview
ADJUSTED REVENUE ($MM) 1 ADJUSTED EBITDA ($MM) 1 1 5 % 24% 1 7 % 1 8 % Adjusted EBITDA Margin 24 PLAYBOY 2020 Source: Management projections. 1 201 8 - 2019A revenues and EBITDA do not include Yandy . Yandy was acquired by Playboy in Dec 20 19. *See non - GAAP to GAAP reconciliations at the end of t
Slide 25: Near-Term Growth Drivers
$13.5 $11.7 $24.1 $40.3 $100.0 2018A 2019A 2020E 2021E 2025 Target ADJUSTED REVENUE ($ MM ) 1 ADJUSTED EBITDA ($ MM) 1 25 PLAYBOY 2020 Near - Term Growth Drivers 2020 GROWTH ASSUMPTIONS • Transition to consumer products and owned and operated model • Acquisition of Yandy on 12/31/2019 • Sexual welln
Slide 26: Adjusted EBITDA Target Bridge
$ 24.1 $ 8.4 $ 7.0 $ 1.2 $ 1.0 $(1.5) $ 40.3 2020E Adjusted EBITDA Licensing Sexual Wellness Legacy Business Yandy G&A Expenses 2021E Adjusted EBITDA Adjusted EBITDA Target Bridge 26 PLAYBOY 2020 ADJUSTED EBITDA TARGET 1 Legacy business ceased operations in 2020. 1
Slide 27: 2025 Adjusted Revenue and EBITDA Bridge
$296 $104 $111 $37 $46 $84 $13 $55 $13 $3 $131 2020E Adjusted Revenue Sexual Wellness Growth Lifestyle Experiences Growth Apparel & Accessories Growth Beauty & Grooming Growth 2025E Adjusted Revenue COGS Segment OPEX G&A D&A 2025E Adjusted EBITDA • Sexual Wellness : • Introduction of new CBD, wipes,
Slide 28: Summary: Playboy Investment Highlights
Summary: Playboy Investment Highlights 1 2 3 4 5 Iconic Global Consumer Platform Highly Profitable Business Model M&A Acceleration Opportunity • One of the world’s most iconic global consumer lifestyle brands with massive global reach • Diversified portfolio of products / services in four high - gro
Slide 29: Appendix
PLAYBOY 2020 29 PLAYBOY 2020 APPENDIX
Slide 30: Sexual Wellness Growth Plan
$247 $264 $283 $304 $328 $355 $388 2018A 2019E 2020E 2021E 2022E 2023E 2024E Sexual Wellness Growth Plan Playboy’s Sexual Wellness Segment Expected to Generate Approx. $5 4 M in revenue in 2020. GLOBAL SEXUAL WELLNESS MARKET 1,2 GROWTH OPPORTUNITY Playboy Brand Value: • Playboy represents a trusted
Slide 31: Style & Apparel Growth Plan
$1,113 $1,218 $1,335 $1,464 $1,607 $1,766 $1,942 2018A 2019E 2020E 2021E 2022E 2023E 2024E Style & Apparel Growth Plan Playboy’s Fashion & Apparel Segment Expected To Generate Approx. $ 69 M in revenue in 2020. Playboy Brand Value: • Leading men’s apparel brand in China • Product categories cover me
Slide 32: Gaming & Lifestyle Growth Plan
$1,122 $1,165 $1,210 $1,259 $1,310 $1,361 $1,416 2018A 2019E 2020E 2021E 2022E 2023E 2024E Gaming & Lifestyle Growth Plan Playboy’s Lifestyle Experiences Segment Expected To Generate Approx. $ 4 M in revenue in 2020. GLOBAL LIFESTYLE EXPERIENCES MARKET 1,2 GROWTH OPPORTUNITY Playboy Brand Value: • P
Slide 33: Beauty & Grooming Growth Plan
$328 $343 $360 $377 $395 $414 $434 2018A 2019E 2020E 2021E 2022E 2023E 2024E Beauty & Grooming Growth Plan Playboy’s Beauty & Grooming Segment Expected To Generate Approx. $3M in revenue in 2020 Playboy Brand Value: • Proven commercial success in fragrance category; from 2012 to 2014 date achieved $
Slide 34: Comparable Company Benchmarking (1/3)
24.1% 1 25.3% 12.3% 24.7% 19.9% 3.3% 15.2% Playboy Sexual Wellness Fashion Apparel & Accessoires Digital and Experiences Beauty & Grooming Direct to Customer Aggregate Comps 85.4% 1.9% (8.4%) 3.8% (2.0%) 80.4% 2.9% Playboy Sexual Wellness Fashion Apparel & Accessoires Digital and Experiences Beauty
Slide 35: Comparable Company Benchmarking (2/3)
35 PLAYBOY 2020 Source(s): Capital IQ as of 0 9 / 25 /20 . 1 Multiples larger than 100.0x and less than 0.0x deemed not meaningful. Comparable Company Benchmarking (2/ 3 ) Stock % 52-Week Market Enterprise Price High Cap ($M) Value CY2020 CY2021 CY2022 CY2020 CY2021 CY2022 Revenue EBITDA CY2020 CY20
Slide 36: Comparable Company Benchmarking (3/3)
36 PLAYBOY 2020 Comparable Company Benchmarking ( 3 / 3 ) Stock % 52-Week Market Enterprise Price High Cap ($M) Value CY2020 CY2021 CY2022 CY2020 CY2021 CY2022 Revenue EBITDA CY2020 CY2021 Market Valuation Valuation Metrics 1 Growth Profile (CAGR) Margin Profile EV/Revenue EV/EBITDA CY2019 - CY 2021
Slide 37: Consolidated Adjusted Revenue Reconciliation
Consolidated Adjusted Revenue Reconciliation PLAYBOY 2020 37 GAAP to Model Revenue Reconciliations ($000s) Audited Unaudited 2018 2019 YTD 6/30/20 GAAP Revenue 100,873$ 94,237$ 59,324$ Adjustments Coty Deferred Revenue Recognition Acceleration (22,127) - - UMD Novation Payment (500) - - Shanghai Cha
Slide 38: Consolidated Adjusted EBITDA Reconciliation
Consolidated Adjusted EBITDA Reconciliation PLAYBOY 2020 38 GAAP to Model EBITDA Reconciliations ($000s) Audited Unaudited 2018 2019 YTD 6/30/20 Net Income 1,683$ 265$ (7,341)$ Adjustments Depreciation & Amortization 4,043 3,093 1,352 Income Tax Expense/(Benefit) 2,262 3,184 2,080 Interest Expense 9
Slide 39: Yandy Adjusted EBITDA Reconciliation
Yandy Adjusted EBITDA Reconciliation PLAYBOY 2020 39 Yandy Enterprises LLC EBITDA Reconciliations ($000s) Unaudited YTD 6/30/19 YTD 6/30/20 GAAP Net Income (2,445)$ 551$ Adjustments Interest Expense, net 1,159 - Management Fee 90 - Depreciation & Amortization 2,233 272 EBITDA 1,038 823 Adjustments T
Slide 40: Consolidated Income Statement
Consolidated Income Statement PLAYBOY 2020 40 Note(s): These numbers do not include public company costs; historical financials are presented on management adjusted basis. * See slides 37 and 38 for non - GAAP to GAAP reconciliations. ($000's) Actuals 2018A 2019A YTD 6/30/2020 Revenue Commerce 45,40
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet PLAYBOY 2020 41 ($000's) Audited Unaudited Audited Unaudited 2018A 2019A 6/30/2020 2018A 2019A 6/30/2020 Assets Liabilities & Shareholders' Equity Current Assets Current Liabilities Cash 26,841$ 26,903$ 22,151$ Accounts Payable 6,802$ 7,593$ 7,364$ Restricted Cash 7,704 96
Slide 42: Slide 42
Mountain Crest Acquisition — SPAC Merger (October 2020) on 6ix