Hypebeast Ltd. · HKEX:150
Hypebeast — SPAC Merger (April 2022)
43 slides from Hypebeast's SPAC merger presentation, Apr 4, 2022
Slide 1: HYPEBEAST Investor Presentation
March 2022 HYPEBEAST Investor Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the “proposed business combination”) between Hypebeast Hong Kong Ltd. (“Hypebeast” or the “Comp
Slide 3: Disclaimer: Financial Information; Non-GAAP Financial Measures
Disclaimer Financial Information; Non-GAAP Financial Measures The fnancial information and data contained in this presentation is unaudited and does not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented diferently in, any
Slide 4: Iron Spark I: consumer focused SPAC
Forces within technology, culture and commerce are colliding to create large scale disruption and opportunity across the branded consumer landscape Iron Spark I seeks to identify a breakthrough company where we can leverage our experience and expertise to accelerate its inflection Iron Spark I A con
Slide 5: Presenters & Senior Leadership
Presenters & Senior Leadership 5 Kevin Ma Founder & CEO Overall Management, Business Direction and Strategy Josh Spear CEO Former Co-Founder Undercurrent Media Development, Agency Building, Brand Relationships Patrick Wong CFO Delivering Operations-Focused Finance Solutions Trevor Edwards Director F
Slide 6: Contents
Contents Introduction About Hypebeast Hypebeast 2.0 Financial Overview Valuation and Comparables Appendix 6 7 12 19 26 29 36
Slide 7: Introduction
Introduction 7
Slide 8: Hypebeast lives at the center of the cultural zeitgeist
Hypebeast lives at the center of the cultural zeitgeist. “If you’ve ever wondered why people wait in line for days in front of a sneaker shop. Or why a skater architect was at the helm of Louis Vuitton. Or why a rapper is now a billionaire brand owner? You need to look no further than Hypebeast. Hyp
Slide 9: Hypebeast has become one of the most influential media brands
9 “Hypebeast has become one of the most influential media brands spanning product, lifestyle, fashion and culture. They are the go-to destination for people wanting to stay ahead and as such, the go-to platform for brands wanting to increase their influence and sales in the marketplace. They have ce
Slide 10: Iron Spark Investment Thesis
Iron Spark Investment Thesis Partnering with Management to Build Hypebeast 2.0 Leading Creator of Media and Content at the Forefront of Culture 26M social media followers, 18M monthly unique visitors* and 900M+ TikTok tags Unique Opportunity to Invest in Streetwear and Culture in the Public Markets,
Slide 11: Transaction Summary
Transaction Summary 11 Transaction Parties • Hypebeast Limited, a Cayman Company (HKEX:150) • Iron Spark I, a Delaware Corporation (NASDAQ: ISAA) Transaction Summary • The transaction will be funded by a combination of ISAA cash held in a trust account, newly issued Hypebeast ordinary shares and pro
Slide 12: HYPEBEAST: Driving Culture Forward
HYPEBEAST “Driving Culture Forward” 12
Slide 13: Global media and commerce company at the forefront of culture
Hypebeast is a global media and commerce company positioned at the forefront of culture. 13
Slide 14: Hypebeast Today
Hypebeast Today HYPEBEAST EDITORIAL & SOCIAL MEDIA PLATFORM CREATIVE AGENCY E-COMMERCE PLATFORM E-commerce platform distributing 250+ up-and- coming and established brands globally with flagship retail location in Hong Kong Flagship platform showcasing the latest in fashion, art, design and culture
Slide 15: Hypebeast Snapshot
Hypebeast Snapshot 15 $112M Revenue 3/31/22 FYE (USD) 59% Gross Margins* 26M Social Media Followers 29% YoY Revenue Growth 22% EBITDA Margins* 18M Monthly Unique Visitors Note: For FY2021E, Fiscal Year Ends March 31, 2022. * Based on Hypebeast’s historical interim fnancial results for the period end
Slide 16: Global Reach And Cross-Border Influence
Global Reach And Cross-Border Infuence PRIVATE & CONFIDENTIAL 16 LOS ANGELES CHICAGO TORONTO NEW YORK DALLAS HOUSTON SEATTLE SAN FRANSISCO LONDON PARIS MILAN BERLIN DUBAI SHANGHAI SEOUL TOKYO HONG KONG TAIPEI MELBOURNE SYDNEY NORTH AMERICA 13M 44M EMEA 2M UNIQUE VISITORS/MONTH 7M PAGE VIEWS/MONTH 3M
Slide 17: Bluechip Asset in Ascendant Markets
17 “Brands advertise on Hypebeast because they know it’s infuential.” Business of Fashion “Hypebeast [is] one of the world’s foremost authorities on streetwear and street culture.” Forbes “Supreme Streetwear Brand Sold to VF in $2.1 Billion Deal” Wall Street Journal “Moncler adds Stone Island to Col
Slide 18: A Massive Market Opportunity In Streetwear and Beyond
A Massive Market Opportunity 18 In Streetwear and Beyond… …with Secular Tailwinds • At the intersection of the growing luxury, sportswear and sports-inspired lifestyle apparel categories • Popularity amid a wider trend towards comfort- driven, athleisure clothing • At the forefront of culture - infu
Slide 19: HYPEBEAST 2.0
HYPEBEAST 2.0 The Leading Global Platform for Forward-Looking Culture 19
Slide 20: The Hypebeast Growth Algorithm
The Hypebeast Growth Algorithm Fully Realized Marriage of Content and Commerce 20 eCommerce Digital Media Localization and personalization of media content to drive audience expansion and deeper customer engagement Opportunities to optimize growing ad inventory across all platforms Integration of HY
Slide 21: Integrated Media, Marketing and eCommerce
21 Integrated Media, Marketing and eCommerce HBX.com HYPEBEAST article with hyperlinks IG Stories Swipe to editorial content BUY
Slide 22: Unlocking the Full Potential of the Hypebeast Community
Unlocking the Full Potential of the Hypebeast Community 213M HYPEBEAST Annual Unique Visitors US $258 Average Order Value $ 1.1% Order Conversion Rate 20x or US $608M Potential demand in our e-commerce ecosystem 22 Full Conversion of HYPEBEAST Users Into HBX Shoppers
Slide 23: Expansion of Media Verticals & Shift to Social
Expansion of Media Verticals & Shift to Social 23 Topical and Regional Extensions Fueling Media Reach Hypebeast’s social media footprint continues to grow across key global platforms such as Instagram (19M followers) and TikTok (1.2M followers, over 900M #HYPEBEAST hashtags) as of 10/2021. Organic g
Slide 24: Enormous, Latent ReCommerce Opportunity
Enormous, Latent ReCommerce Opportunity Hypebeast has only scratched the surface of ReCommerce 24 Companies like GOAT, StockX and TheRealReal have proven the opportunity to create massive, second-hand luxury marketplaces Streetwear and sneakers are an especially attractive category where Hypebeast a
Slide 25: Connecting Digital Loyalty & Physical Experiences
PRIVATE & CONFIDENTIAL Connecting Digital Loyalty & Physical Experiences 25 NYC Flagship slated to open H2 2022 will incorporate HBX retail space with ofce/studio space for editorial and agency staf Retail spaces designed to be unit level proftable and/or create cost savings Additional opportunities
Slide 26: Financial Overview
Financial Overview 26
Slide 27: Track Record of Driving Profitable Growth
$30 $60 $90 $120 2006 2008 2010 2012 2014 2016 2018 2020 EBITDA (US $M) Revenue (US $M) Track Record of Driving Profitable Growth Sustained Growth through Organic Reach & Deliberate Extensions 34% Revenue CAGR 2015 - 2021 Note Years denote FYE March 31 of the following year 27 2005 HYPEBEAST launche
Slide 28: Financial Summary by Segment
EBITDA Margin % Whole Business FY2020 H1 FY2021** 22 18 Growth in eCommerce driven by category growth as well as conversion of HYPEBEAST readers into HBX customers Expand Margins through scaling regional inventory and consignment throughput Monetize web trafc by expanding brand and inventory breadth
Slide 29: Valuation & Comparables
Valuation & Comparables 29
Slide 30: Kevin Ma quote on working with Iron Spark
PRIVATE & CONFIDENTIAL 30 “Working with Iron Spark isn’t just about capital, it’s about the incredible access and experience that the board and management team bring to the table. For us that is a 1+1=3 equation.” Kevin Ma Founder & CEO, Hypebeast 30
Slide 31: Proposed Transaction Summary
Illustrative Pro Forma Capitalization at Close Shareholder Shares %Total Hypebeast Shareholders 30.0 56.2% PIPE Investors 1.3 2.5% SPAC Public Shares 16.7 31.2% SPAC Founder Shares(4) 5.4 10.1% Total 53.4 100.0% SPAC Sponsors 10.1% Public 31.2% PIPE 2.5% HYPEBEAST 56.2% Proposed Transaction Summary
Slide 32: Operational Benchmarking: Public Comparables
32 Operational Benchmarking: Public Comparables Source: Buzzfeed Press Release; CapitalIQ as of 3/22/2022. * Based on Hypebeast projected revenue of not less than US $112 million for the Fiscal Year Ending March 31, 2022. ** Based on historical interim financial results for the period ended Septembe
Slide 33: Valuation Benchmarking: Public Comparables
33 Valuation Benchmarking: Public Comparables Source: Buzzfeed Press Release; CapitalIQ as of 3/22/2022. * Implied based on H1 FY2021 actual EBITDA margin and historical interim financial results for the period ended September 30, 2021 published on December 8, 2021. ** Based upon Hypebeast projected
Slide 34: Private Comparables
Private Comparables Attractive Landscape in the Media and ReCommerce Space with Private Companies Raising ~$5B(1) of Growth Capital Hypebeast delivers best-in-class across media and commerce with unparalleled brand engagement and customer loyalty that will decrease customer acquisition costs and inc
Slide 35: Thank You
THANK YOU MYPEBEAST L 4 ur
Slide 36: Appendix
Appendix 36
Slide 37: Deal Structure
Deal Structure BUSINESS COMBINATION HYPEBEAST FORMS DELAWARE SUBSIDIARY TO MERGE WITH IRON SPARK Hypebeast HK Listed Cayman Entity Hypebeast Shareholders MergerCo Subsidiary Delaware Entity Iron Spark Nasdaq Listed Delaware Entity SPAC Public Shareholders** SPAC Sponsor Shareholders 80% 20% 100% 100
Slide 38: Pre-Transaction Deal Structure
Pre-Transaction Deal Structure Hypebeast HK Listed Cayman Entity Hypebeast Shareholders MergerCo Subsidiary Delaware Entity 100% Iron Spark Nasdaq Listed Delaware Entity SPAC Public Shareholders SPAC Sponsor Shareholders 80% 20% 100% Hypebeast Forms Delaware Subsidiary 38
Slide 39: Regional Revenue Segmentation
39 Media & Agency eCommerce & Retail ROW 16% Japan 3% Italy 5% Hong Kong 8% South Korea 9% US 26% China 32% $58M FY20 Revenue (USD) ROW 20% Japan 7% China 8% South Korea 8% Hong Kong 13% Taiwan 18% US 26% $29M FY20 Revenue (USD) Regional Revenue Segmentation Note: Reflects FY2020 revenue (FYE March
Slide 40: The Hypebeast Flywheel
Hypebeast LTD. The Hypebeast Flywheel Highly Complementary & Integrated Business Units 40 Agency Media Commerce & Experiential HYPEBEAST.com & regional HYPEBEAST sites HYPEBAE.com POPBEE.com Creative Agency Services NYC Flagship HYPEFEST HYPEBEANS ETC Brand Promotion Monetizing & Enriching with IRL
Slide 41: Building The Full Stack Lifestyle Platform
Building The Full Stack Lifestyle Platform Hypebeast is Well Positioned to Deliver 360 Exposure for Brands 41 Brand Partners/Advertisers Community The Hypebeast Stack Editorial Properties Compelling content drives engagement Creative Services Rich and audience specifc campaign development Native Com
Slide 42: Josh Spear quote on culture, commerce and technology
42 “Hypebeast sits at that intersection of culture, commerce and technology. When we developed our thesis for Iron Spark I this was precisely the type of company we were looking for. Josh Spear CEO, Iron Spark I Board Nominee of Combined Company
Slide 43: Risk Factors
Risk Factors Risks Related to Hypebeast Hypebeast’s business depends on its ability to ofer digital media content and online retail products that attract visitors and online shoppers. Hypebeast depends on the Internet trafc to its websites for the operation of its business. Hypebeast relies on its e