Reebonz Holding Limited · OTC:RBZHF
Reebonz — Draper Oakwood Technology Acquisition — SPAC Merger (September 2018)
41 slides from Reebonz's SPAC merger presentation, Sep 26, 2018
Slide 1: Investor Presentation September 2018 (Revised)
Investor Presentation September 2018 (Revised)
Slide 2: Disclaimer
1 Disclaimer This Investor Presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Reebonz Ltd . (“Reebonz” or the “Company”) or Draper Oakwood Tech
Slide 3: Parties to the Business Combination
2 Parties to the Business Combination Draper Oakwood Technology Acquisition, Inc. (“DOTA” or “Draper Oakwood”) is a blank check company formed to acquire a venture - backed technology company with an enterprise value greater than $200m DOTA completed its $57.5m IPO in September 2017 Tim Draper
Slide 4: Executive Leadership
3 Executive Leadership Reebonz Samuel Lim Co - Founder, CEO Founded eFusion Pte Ltd (Fusion Mobile), a mobile content provider in the region in 2000 − Exited to a Malaysian listed firm in 2006 Also f ounded eFusion Solutions Pte Ltd, a direct sales platform for the banking and finance industry i
Slide 5: Agenda
4 Reebonz Overview 5 The Market Opportunity 11 Key Differentiators 16 Recent Results and Growth Overview 24 Transaction Overview 32 Page
Slide 6: Reebonz Overview
mR REEBONZ YOUR WORLD OF LUXURY, Reebonz Overview
Slide 7: Trusted Brand for Buying and Selling Luxury Products
6 Trusted Brand for Buying and Selling Luxury Products South Korea Taiwan Hong Kong Indonesia Singapore U.S.A China Japan Main localized websites Countries of delivery Malaysia Headquarters and centralized warehouse ~S$347m GMV ~S$150m Revenue 3.9x – 5.9x LTV / CAC (4) ~S$1,526 Average GMV Per User
Slide 8: Our Vision: Making Luxury Accessible
7 Our Vision: Making Luxury Accessible We make luxury accessible across various product offerings and premium services, driving a personalized and differentiated consumer experience unlike anything else in the market BUY • B2C Merchandise • B2C Merchant’s Marketplace SELL • Closets (C2C Marketplace)
Slide 9: Reebonz has Built a Complete Luxury Ecosystem
8 Sellers enter the Reebonz Ecosystem Merchant’s Marketplace B2C Marketplace Luxury offerings including handbags, leather goods, shoes, timepieces and jewelry and apparel Reebonz has Built a Complete Luxury Ecosystem The Reebonz Luxury Ecosystem incentivizes buyers to become sellers and sellers to
Slide 10: Innovative Technologies Power Sustainable Differentiation
9 Innovative Technologies Power Sustainable Differentiation Technology is core to our strategy and will enable us to scale rapidly, further build out a differentiated model and deliver a superior margin profile over the long - term Mobile First, Social Driven – Enhances omni - channel – Social exper
Slide 11: Reebonz – Key Investment Highlights
10 Reebonz – Key Investment Highlights 2 Tremendous market opportunity with favorable long term fundamentals 1 Southeast Asia’s leading luxury ecosystem with powerful network effects 6 Experienced management team ready to take Reebonz to the next level 3 Trusted brand for buying and selling luxury g
Slide 12: The Market Opportunity
mR REEBONZ YOUR WORLD OF LUXURY, The Market Opportunity
Slide 13: Creating New Demand and Bringing Accessible Luxury to Asia
12 Creating New Demand and Bringing Accessible Luxury to Asia We are capitalizing on a growing appetite for luxury goods from a range of demographics across Asia Pacific that historically did not have a platform to discover higher end products High end collectible and coveted luxury Authenticated, t
Slide 14: Addressing a Large and Growing Market for Luxury Goods
13 Addressing a Large and Growing Market for Luxury Goods ~4% - 5% CAGR 2017 – 2020E (1) 5% growth 2016 - 2017 (1) ~9% Online Penetration in 2017 (1) 25% by 2025 (1) ~85% Growth Driven by Millennials and Gen Z (1) Strong resale market allows Luxury to live forever US$300+ (1) Billion Global Personal
Slide 15: Tremendous Market Opportunity for Pre-Owned Luxury Goods
14 Tremendous Market Opportunity for Pre - Owned Luxury Goods Source: Frost & Sullivan as of 2014 . (1) Core Asia Pacific markets include Singapore, Malaysia, Indonesia, Thailand, Philippines, Vietnam, South Korea, Taiwan, Hong Kong, Australia and New Zealand. With the development of advanced e -
Slide 16: Uniquely Positioned in the Online Luxury Retail Segment
15 Uniquely Positioned in the Online Luxury Retail Segment Core SEA & Asia Pac. Focus Luxury Focus Buying Selling (1) New Pre - Owned (+ Authentication Capabilities) Specialist Online Luxury Retailers – Limited Ecosystem Strategy & Overlap in o ur Geographies Online General Retailers & Marketplaces
Slide 17: Key Differentiators
mR REEBONZ YOUR WORLD OF LUXURY, Key Differentiators 16
Slide 18: Our Key Differentiators
17 Our Key Differentiators Our mission is to create the easiest and most trusted platform for buying and selling luxury goods TECHNOLOGY / DATA / PERSONALIZATION AUTHENTICATION & VALUATION Cross - border Omni - channel e - Commerce Capabilities Buyers and Sellers in One Ecosystem Widest Range of Lux
Slide 19: Virtuous Cycle with Strong Network Effects
18 Virtuous Cycle with Strong Network Effects ~582k+ luxury SKUs (1) Focus on the quality of product offerings, not quantity Robust screening process including trusted authentication for pre - owned products New and pre - owned >1,000 brands (1) ~42k unique sellers (2) Buyers become se
Slide 20: Building a Long Tail of Luxury Products
19 x Increase depth of products, brands, and buyers’ liquidity Number of Sellers Depth and Range of Brands and Products B2C Merchandise B2C Merchant’s Marketplace C2C Individual Seller’s Marketplace Increasing range of brands and products 2014A 2017A 51k SKUs ~582k SKUs 340 brands 1,000+ brands 4k s
Slide 21: Unique Expertise & Technology in Authentication of Pre-Owned Products
20 Unique Expertise & Technology in Authentication of Pre - Owned Products 1 . Authentication and Certification • Objective assessment: team of ateliers ensure all requirements and fulfilled • Subjective assessment: based on workmanship • Reebonz Atelier Authenticity Card issued once products are au
Slide 22: Localized Approach Creates Differentiated Experience
21 Localized Approach Creates Differentiated Experience (1) Mobile apps are generally available in English language, except in South Korea where it is in Korean. (2) Price for the same product varies across different countries; price variance not only results from currency conversion but al so refle
Slide 23: Omni-Channel Platform Enhances Brand and Expands Reach
22 ▪ Single view of a customer ▪ Multiple channels to communicate with customers − Localized messaging applications − Social Network ▪ Omni - stock (offline stores + merchant boutiques) Omni - Channel Platform Enhances Brand and Expands Reach 5 Singapore Australia Malaysia Boutiques Enable offline m
Slide 24: Innovation Through Technology and Data
23 Innovation Through Technology and Data We are utilizing technology to drive unique aspects of our platform including data - driven predictive analytics, differentiated features and blockchain authentication Asia Luxury Index Sell Back Guarantee Blockchain Authentication C2C Mobile Social Marketpl
Slide 25: Recent Results and Growth Overview
24 Recent Results and Growth Overview
Slide 26: Proven Model with Strong Fundamental Business Drivers
25 126 216 2013A 2017A $737 $933 2013A 2017A Proven Model with Strong Fundamental Business Drivers 78 132 2013A 2017A 2.8 5.5 2013A 2017A (1) “Registered members” means the number of Reebonz accounts that have been registered as of the end of a period. (2) “Total buyers” for a specified period means
Slide 27: Returning to Strong Growth and Enhanced Profitability
26 $109 $145 $253 $341 $347 $292 $424 $86 $116 $174 $176 $150 $140 $199 20% 25% 30% $0 $100 $200 $300 $400 $500 2013A 2014A 2015A 2016A 2017A 2018E 2019E GMV Net Revenue Gross Margin 21.9% 24.8% 25.6% 27.9% 29.3% 30.6% Returning to Strong Growth and Enhanced Profitability 2013 – 2015: Rapid Growth a
Slide 28: Compelling Model with Strong Unit Economics
27 Compelling Model with Strong Unit Economics Note: Based on 2017 actual results. (1) ESOP defined as Employee Stock Option Plan. (2) Fulfillment expense excludes staff cost of S$5.5m in 2017, and excludes rental cost of S$1.1m in 2017. Online marketing expen se excludes staff costs of S$2.5m in 20
Slide 29: Strong LTV / CAC Metrics Support Investment
28 Strong LTV / CAC Metrics Support Investment GMV (2013 to 2017A) S$133m Revenue (2013 to 2017A) S$110m Contribution margin S$29m Marketing Expenses ( Acq ) S$7.5m LTV (S$ per customer) S$672 CAC (S$ per customer) S$173 LTV/CAC 3.9x Marketing efficiency ratio (3) 23x / 19x $53,959 $81,726 $104,973
Slide 30: Multiple Predictable Drivers of Growth
29 Robust data - driven strategy to invest in high ROI countries, while maintaining a dominant position in the others Broadening base of products by optimizing mix of inventory sourcing and adding more SKUs through marketplaces, and individual sellers Continue to acquire more sellers and convert the
Slide 31: Leading Investors Have Backed Us for Years
30 Leading Investors Have Backed Us for Years Founded in 2000, GGV Capital is a venture capital firm that invests in entrepreneurs in the social/commerce, frontier tech and cloud/SaaS sectors GGV Capital has $3.8 billion in capital under management across eight funds and has invested in over 280
Slide 32: Experienced Team Ready to Take Reebonz to the Next Level
31 Experienced Team Ready to Take Reebonz to the Next Level Samuel Lim Co - Founder, CEO Nupur Sadiwala Chief Financial Officer Evelyn Lim Financial Controller Daniel Lim Co - Founder Chief Product Officer Zuunbo.com Benjamin Han Co - Founder Chief Marketing Officer Zuunbo.com Torres Oey Chief Techn
Slide 33: Transaction Overview
mR REEBONZ YOUR WORLD OF LUXURY, Transaction Overview 32
Slide 34: Transaction Overview
33 Transaction Overview Reebonz and Draper Oakwood have signed a definitive business combination agreement (“BCA”) , pursuant to which DOTA and Reebonz will become subsidiaries of a newly created Cayman Islands exempted company, DOTA Holdings Limited, which will, following the closing, be renamed
Slide 35: Pro Forma Capitalization and Ownership
34 Pro Forma Capitalization and Ownership Pro Forma Summary of Ownership Post - Closing (4) (1) $10.26 is estimated as of October 31, 2018, assumes the effect of the three - month extension of the SPAC at September 14, 2018 an d an estimate of interest earned through the end of that period. (2) Incl
Slide 36: Near-Term Growth Above the Peer Average
35 45.5% 59.7% 56.0% 31.2% 30.9% 28.3% 27.2% 27.1% 24.7% 22.7% 19.0% 17.4% 17.1% 8.5% 42.0% 67.2% 52.9% 44.9% 42.2% 33.7% 32.8% 30.9% 27.1% 22.7% 21.2% 20.7% 19.0% 5.6% Near - Term Growth Above the Peer Average Source: Company presentation, public filings and Wall Street consensus estimates as of Se
Slide 37: Discounted Valuation Relative to Peers
36 2.0x 9.9x 7.6x 5.5x 5.3x 5.2x 3.4x 3.4x 3.3x 3.1x 1.9x 1.7x 1.6x 1.5x 2.8x 13.2x 10.1x 8.4x 7.6x 7.5x 5.6x 4.1x 3.9x 3.3x 2.4x 2.1x 2.1x 1.8x Discounted Valuation Relative to Peers EV / 2018E Revenue EV / 2019E Revenue Median = 4.1 x Median = 3.4x Mean = 5.5 x Mean = 4.1x Discount to Median: 31.2
Slide 38: Appendix
mR REEBONZ YOUR WORLD OF LUXURY, Appendix
Slide 39: Equity Capitalization and Earnout Structure
38 Equity Capitalization and Earnout Structure Earnout Structure Summary of Equity Capitalization with Earnout Additional equity consideration to Reebonz shareholders and management team under the Earnout provisions of the definitive agreement and the Management Performance Plan in the event conso
Slide 40: Income Statement
39 Income Statement Note: FY2014A and FY2015A audited financials have been restated. (1) Projections for 2018 and 2019 are preliminary and subject to change. (1) (S$ in Millions) FY 2013 A FY 2014 A FY 2015 A FY 2016 A FY 2017 A FY 2018 E FY 2019 E Total GMV 109 145 253 341 347 292 424 Revenue 86 11
Slide 41: Balance Sheet
40 Balance Sheet Note: 2018 financial results are preliminary and subject to change; Q2 2018 results are unaudited. Convertible preference shares will converted to common shares at closing. The Company has venture debt term loan in the amount of S$4 million, 1 - month Singapore Swap Offer rate or th
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