Q2 FY2021 Investor Presentation - Ended September 30, 2020 November 2020 - Public Now
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Q2 FY2021 Investor Presentation
Ended September 30, 2020 November 2020
PAGE 1
This presentation has been prepared by Ruhnn Holding Limited (“ruhnn” or the Such forward-looking statements are not guarantees of future performance and
“Company”) solely for informational purposes. The information included herein was involve risks and uncertainties. Actual results may differ from those in the forward-
obtained from various sources, including certain third parties, and has not been looking statements as a result of various factors, many of which are beyond the
independently verified. No representation, warranty or undertaking, express or Company’s control. The Company, its affiliates, advisors and representatives assume
implied, is made as to, and no reliance should be placed on, the fairness, accuracy, no obligation to and do not undertake to update such forward-looking statements to
completeness or correctness of the information or the opinions contained herein. reflect future events or circumstances.
None of the Company, any of its affiliates, shareholders, directors, employees, agents,
advisors or representatives will be liable (in negligence or otherwise) for any loss This presentation speaks as of the unaudited financial results for the second quarter
howsoever arising from any use of this presentation or its contents or otherwise of fiscal year 2021 ended September 30, 2020. The information presented or
arising in connection with the presentation. contained in this presentation is subject to change without notice. Neither the delivery
of this presentation nor any further discussions of the Company, any of its affiliates,
This presentation does not contain all relevant information relating to the Company shareholders, directors, employees, agents, advisors or representatives with any of the
or its securities, particularly with respect to the risks and special considerations recipients shall, under any circumstances, create any implication that there has been
involved with an investment in the securities of the Company. Nothing herein no change in the affairs of the Company since that date.
constitutes an offer to sell or issue or the solicitation of an offer to buy or acquire
securities of the Company in any jurisdiction or any inducement to enter into By attending this presentation and viewing and accepting these materials, you agree
investment activity, or may form the basis of or be relied on in connection with any to be bound by the limitations described herein. These materials are being given
contract or commitment whatsoever. solely for your use at this presentation. Unless otherwise specifically permitted by the
Company, no part of these materials may be retained following this presentation or
This presentation contains forward-looking statements, including statements about be copied, reproduced, redistributed or otherwise disclosed, directly or indirectly to
the Company’s business and financial outlook, strategy and market opportunity, and any other person in any manner, or published, in whole or in part, for any purpose.
statements about the Company’s historical results that may suggest trends for its
business. These statements may be recognized by the use of words such as “expects,”
“plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning.
PAGE 2
Company Overview
&
Investment Highlight
PAGE 3
180 signed KOLs(1)
(23% YoY growth)
53 top-tier, established and emerging KOLs(1)(2)
(71% YoY growth)
Q2 FY2021(4)
295.3 MM fans(1)(3)
RMB248.5 MM Net Revenue
(56% YoY growth)
RMB119.3 MM Services Revenue
(84% YOY growth)
Leading Internet KOL facilitator in China
Access to 800+ suppliers(1) 1,423 brands(1)
(68% YoY growth)
17 self-owned online stores(1)
Notes
1. As of September 30, 2020.
2. Top-tier, established and emerging KOLs generated services revenue of RMB1.2 mm or more in the past twelve months.
3. Aggregate number of followers across major social media platforms in China (without removal of duplicates) .
4. For the fiscal quarter ended September 30, 2020.
PAGE 4
Leading Market Position: Well-structured and
01 08 sustainable talent pool
• Leading Internet KOL
facilitator in China with low risk of losing
KOLs
• 4.9% market share(1)
A platform of KOL
One of the first to 02 07 commercialization, new
systematically facilitate the
retail integration, sales
KOL economy in China
and marketing
A platform model driven
Strong brand recognition: 03 06 business model well
Ruhnn is a trusted brand and suited for long-term and
business partner in new retail sustainable growth
Established partnership with
Robust supply chain 04 05 major social media platforms
management capabilities
Notes:
1. As measured by GMV of signed Internet KOLs online stores divided by total Internet KOLs E-commerce GMV in 2018 according to Frost and Sullivan..
PAGE 5
PLATFORM MODEL FULL-SERVICE MODEL
Successfully completed business model transition
• Greater scale in a more asset-light manner
• Captures the entire e-commerce value chain
• Various monetization channels: advertising, e-commerce live-streaming, ONE
STOP • Wide range of product offering
joint stores, and online sharing stores, etc.
• Serves more types of businesses and work with more diversified KOLs
GOODS Fans Fans
GOODS (customers) GOODS
(customers)
Live-streaming 3rd party Sharing stores
online Supply Self-operating
Brands chain
(customer) retailers stores
(customers)
KOLs KOLs
Sales services
Advertisements
2Q21 – 1Q20
REVENUE RECOGNITION KOL SERVICE FEE REVENUE
KOL SERVICE FEE
RECOGNITION
Services revenue based on performance Average 40%-45% of services
or fixed and pre-determined advertising revenue Product sales Average 10% of product sales revenue
Service rev enue through the platform model
BASIC DATA: BASIC DATA:
Product sales revenue through the full-service model
• As of September 30, 2020: 180 KOLs, accumulated 1,423 brands • As of September 30, 2020: 3 KOLs, 17 online stores.
served.
PAGE 6
TRAINING • Comprehensive training on
social media and e-commerce
• Increase exposure and develop
distinctive characters
ENGAGEMENT AI-BASED MARKETING
SUPPORT
Primarily cooperation • KOL Platform
agreement
• KOC Community
SELECTION PROVEN TRACK RECORD
Tests and data-based Example: growth in number of fans of a
analysis & evaluation KOL identified in June 2018
• # of fans 3.0
mm
• interaction with fans
• personal charisma 0.6
• attitude
• market tactics
June 2 018 After 6 months
• distinctive character
Industry Big data Long-term social Mobilization of internal /
insight analytics media partner external resources
PAGE 7
Number of KOLs, based on services revenue generated
2QFY20 2QFY21 # Fans (M) (5)(6) Service Revenue (6)(7)
(RMB in millions)
Top-tier KOLs (1) 5 8 74.2 33.2
Established KOLs (2) 14 24 66.1 39.8
Emerging KOLs (3) 12 21 67.7 16.6
Micro KOLs (4) 115 127 87.3 15.4
Total (6) 146 180 295.3 119.3
Notes:
1. Top-tier KOLs generated services revenue of RMB10.0 million or more in the past twelve months under the platform model.
2. Established KOLs generated services revenue of RMB3.0 million to RMB10.0 million in the past twelve months under the platform model.
3. Emerging KOLs generated services revenue of RMB1.2 million to RMB3.0 million in the past twelve months under the platform model.
4. Micro KOLs generated services revenue of less than RMB1.2 million in the past twelve months under the platform model.
5. The number of fans presented may include a single fan who was included multiple times if the fan follows more than one KOL, follows the same KOL across multiple platforms, or both.
6. As of September 30, 2020.
7. Total Service Revenue includes RMB14.3 million services revenue generated through cooperation with third-party KOLs.
PAGE 8
KOL PLATFORM
• Place orders for KOL • Submit product • Arrange KOL live • Sign cooperation • Billing and settlement
online sales services samples and pictures streaming schedule agreements
Brands AI technology intelligently matches brands and merchants with suitable KOLs
Merchants
KOC Community
• Provide brands and merchant • Test and review products and
Brands with value-added service share opinions on KOC community Key Opinion
Consumers
Merchants
• Further deepen the partnership and • Reward KOC with credits and awards
increase revenues • Provide free trainings and cultivate KOCs
with great potential to be successful KOLs
PAGE 9
Rise of Internet KOL Economy Market (1) Others (Inc. Virtual Gifts, Knowledge 525.3
Sharing and Others)
(Revenue in RMBbn) 62.7
(Revenue in RMBbn)
KOL Advertising and
Marketing Services
283.0
Internet KOL
91.6
E-commerce
10.9 179.6 The market segments
47.9
Internet KOL economy Ruhnn operates in
32.9
17-22E CAGR: 41.8%
324.4 The market segments
2017 2022E (2)
Ruhnn could expand into
Internet KOL facilitator
91.6 KOL Economy Transforms Online Retail Industry and Digital Marketing
17-22E CAGR: 38.9%
Women's wear Beauty Maternity Household Food & Electronics
200.9
& Child Goods Supplement
52.8
38.8 Beauty
Jewelry Entertainment Travel
Healthcare
2017 2022E
China’s Internet KOL facilitator market Others
Source: Frost & Sullivan.
1. Excludes, for the purposes of this presentation only, Taiwan, the Hong Kong Special Administrative Region and the Macao Special Administrative Region
2. Estimated by Frost & Sullivan PAGE 10Management Team
FENG Min SUN Lei (Ray) SHEN Chao (Eric) WANG Jinbo (Jacky)
Founder & Chairman Founder, Director & CEO Founder & Director CFO
~20 years of entrepreneurial ~20 years of entrepreneurial Specialized in investor relations >18 years of experience in
experience in China’s fashion, experience in China’s fashion, and capital operation finance sector
consumer retail and consumer retail and
e-commerce sectors e-commerce sectors
Zhang Dayi (1) Strategic Shareholders (1)
13.2% 7.5% 8.5% (2) 7.5% 1% 1%
Notes: 1. Represents shareholding % immediately after the IPO. 2. Including investments from Beijing Junlian and Tianjin Junlian.
PAGE 11Financial Overview
PAGE 12Net Revenue Services Revenue
(RMB in millions) (RMB in millions)
%
: 17
GR 1,296
CA
2Yr
1,093
948
%
: 194
GR
r CA
2Y %
273 : 84
249 303 YoY
151 119
35 65
FY2018 FY2019 FY2020 2QFY20 2QFY21 FY2018 FY2019 FY2020 2QFY20 2QFY21
Platform model
Total net revenue
PAGE 13Number of KOLs(1) (2) Accumulated Number of Brand Partners (2)
8%
%
Y: 6
23
Y:
Yo
Yo
%
42
%
:
50
AGR
:1
r C
GR
2Y
CA
r
2Y
1,423
180
168 1,035
146 845
128
632
83
166
FY2018 FY2019 FY2020 2QFY20 2QFY21 FY2018 FY2019 FY2020 2QFY20 2QFY21
Number of KOLs Accumulated Number of brands that the Company cooperated with
Notes:
1. Certain KOLs under the Company’s full-service model overlap with those under the platform model. On the other hand, the Company’s KOLs that were undergoing training and had not started generating GMV under either of the business
models as of the relevant date, were not included in these numbers.
2. As of the end of respective fiscal year or fiscal quarter. PAGE 14Gross Profit Non-GAAP Net income/loss Attributable to ruhnn(1)
(RMB in millions) (RMB in millions)
Gross Margin
32% 31% 38% 44% 41%
-2
-14
-20
490
-73
342 173 -104
304
17 82
317 119
287 260 101
39
55
80 46
FY2018 FY2019 FY2020 2QFY20 2QFY21
FY2018 FY2019 FY2020 2QFY20 2QFY21
Non-GAAP net loss to ruhnn Non-GAAP net income to ruhnn
Full-service model Platform model
Adjusted net income/loss attributable to ruhnn is a non-GAAP measure, which excludes noncash amortization expenses of intangible assets in
(1)
relation to exclusive cooperation rights and share-based compensation expense
PAGE 15Cash Flow from Operating Activities
(RMB in millions)
51
7
-9
-28
-46
FY2018 FY2019 FY2020 2QFY20 2QFY21
Net cash used in operating activates Net cash provided by operating activates
PAGE 16March 31, 2020 September 30, 2020
(In thousands, RMB) (In thousands, RMB)
Cash and cash equivalents 718,478 663,358
Restricted cash 5,673 2,756
Short-term Investment 76,450 48,352
Accounts receivable, net 60,370 93,731
Inventories 145,553 118,687
Advances to suppliers 32,628 46,443
Prepaid expenses and other current assets 37,312 31,895
Total current assets 1,076,464 1,005,222
Total assets 1,434,051 1,371,746
Accounts payable 104,822 110,542
Amounts due to related parties 18,097 15,640
Total liabilities 256,289 297,946
Total shareholders’ (deficit) equity 1,177,762 1,073,800
Total liabilities and shareholders’ (deficit) equity 1,434,051 1,371,746
PAGE 17Growth Strategies
PAGE 1801 02 03 04 05
Continue expanding KOL Expand and diversify KOL Continue diversifying Optimize cost structure to Continue investing in
ecosystem through pool, enlarge fan base monetization channels & enhance profitability technology, AI solutions
organic growth & and improve fan enhance monetization and big data analytics
potential acquisitions engagement capability
• Recruit more KOLs and • Upgrade and optimize • Further develop online • Continue leveraging • Improve content-
attract more participants KOL grooming systems stores under the long-term relationships generating efficiency
to KOL ecosystem platform model, diversify with suppliers and scale and predict fashion
• Help KOLs expand into
product portfolio and of business to negotiate trends
• Pursue strategic additional social media
expand into additional preferential terms
investments platforms • Keep investing in big
verticals
• Improve supply chain data analytics
• Provide more diversified
• Diversify service management
content and foster offerings capabilities and invest in • Develop and upgrade
stronger emotional KOL Platform and KOC
data-based technologies
attachments of fans Community, proprietary
• Optimize KOL grooming technology platforms.
systems to benefit from
scalability
PAGE 19Appendix
PAGE 20Cosmetics
Personal
Care
Apparel
Food &
Beverage
Healthcare
Electric
Appliance
APP
Others
PAGE 21KOLs under Platform Model
• Fashion KOL and creator of famous “garage dance” video on Tik
Tok, which increased her fans by 5+mm in one week
• After receiving our professional training, she is extremely good at
promoting merchandises and brands via producing high quality
content on Weibo and Kuaishou.
• Gained 5.9 mm new fans since joining Ruhnn in June 2018(1)
WEN Wn
Wen Wan 温婉
温婉 Dancing videos Mix & match show Promotion for Singles Day
Number of fans(1) 3.8 mm 2.4 mm 7 mm
Notes: 1. As of June 30, 2020
PAGE 22KOLs under Platform Model
Number of fans(2)
1.45 mm KOL Incubation
• Fan base has grown from 5K to 1.9 million within 10
months
• Successfully incubated her from a company receptionist to
300 K a KOL
• Monthly compensation increased from 5k RMB to 200k
RMB within 10 months
740 K KOL Monetization
• Monthly sales of Hannah’s sharing store (1) has grown from 0
to 7 million RMB in 10 months
憨娜 Hannah • Company’s monthly revenue from Hannah’s business has
340 K grown from 0 to 2 million RMB in 10 months
Chubby and sweet style KOL
Notes:
1. Sharing Store is a new format of Taobao KOL store
2. As of June 30, 2020
PAGE 23KOLs under BK plan, and live-streaming on
Kuaishou platform
Live Streaming + Advertising + Joint Content Production
• Based on KOL’s unique personal positioning, our content production and
KOL incubation teams provide personalized support to KOLs, helping
them to produce more diversified content, and realize long-term value.
• Xiao Wan has overall 5 million followers. After joining ruhnn, the number
of Xiao Wan’s followers on social platforms has increased by over 1 million
in a 3-month period.
小婉 Xiao Wan • The average viewership of Xiao Wan's vlogs is more than 5 million, and
she has on average 3 to 4 live-streaming per month.
Number of fans(1)
3.5 mm 1.2 mm 430k
Notes: 1. As of June 30, 2020
PAGE 24Jointly-Operated Store under Platform Model
Quarterly GMV growth of Yoki’s Taobao Store
(RMB in mm)
41.6
24.2
20.5 21.4
11.5
Q1 FY2020 Q2 FY2020 Q3 FY2020 Q4 FY2020 Q1 FY2021
王少女 Yoki • Yoki is one of the fashion KOLs incubated by Ruhnn under its platform model.
• Ruhnn collaborates with third party to co-operate KOL’s Taobao store.
• Yoki’s Taobao store achieved a GMV of RMB77.6 million in FY2020 and reached record
high quarterly GMV of RMB41.6 million in 1QFY21, representing her core business value
Number of fans(1) 1.9 mm 49K 218K and strong sales abilities.
• Yoki is a rising star in 2020, total GMV in FY2021 is expected to exceed RMB100 million.
Notes: 1. As of October 23, 2020
PAGE 25Advertisement under Platform Model
• Promotion item: apparel • Promotion item: Dior lip gloss--cosmetics • Promotion item: Mars Starburst-food
• Engagement：20K+ • Engagement：14K+ • Engagement：20K+
• Impression：6M+ • Impression：7.31M+ • Impression：8M+
PAGE 26KOLs under Full-service Model
2016 Singles Day 2017 Singles Day 2018 Singles Day 2019 Singles Day
No.13 in woman apparel No.10 in woman apparel No.10 in woman apparel No.4 in woman apparel
No.2 in woman apparel No.2 in woman apparel No.2 in woman apparel No.2 in woman apparel
(excluding name brands) (excluding name brands) (excluding name brands) (excluding name brands)
Brand Partners in Woman Apparel
ZHANG Dayi
张大奕 My Favorite Wardrobe
(吾欢喜的衣橱)
Note: As measured by total GMV on Singles Day in the respective year according to data available to all online store operators on Taobao
PAGE 27Ruhnn Holding Limited The Piacente Group
Sterling Song Emilie Wu
E-mail: Sterling@ruhnn.com E-mail: ruhnn@thepiacentegroup.com
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