introduction to do day dream - listed...

Opportunity Day 4th June 2018

Information as of 1Q18

Latest update on 21st May 2018

The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation

of an offer or invitation to purchase any securities of Do Day Dream Public Company Limited (the “Company”) in Thailand, the United States or

any other jurisdiction. This presentation should not, nor should anything contained in it, form the basis of, or be relied upon in any connection with

any contract or commitment whatsoever. This presentation is confidential and is intended only for the exclusive use of the recipients thereof and

may not be reproduced (in whole or in part), retransmitted, summarized or distributed by them to any other persons without the Company’s prior

written permission.

This presentation may contain forward-looking statements that involve risks and uncertainties. Forward-looking statements are based on certain

assumptions and expectations of future events. Actual future performance, outcomes and results may differ materially from those expressed in

forward-looking statements as a result of a number of risks, uncertainties and assumptions. Although the Company believes that such forward-

looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met.

Representative examples of factors that could affect the accuracy of forward-looking statements include (without limitation) fluctuations in in

regulations relating to the Company’s business, general economic, political and business conditions, global and regional health and security

conditions, the Company’s ability to finance and complete new projects on schedule, liability for remedial actions under environmental regulations

and other factors beyond the Company’s control. You are cautioned not to place undue reliance on these forward-looking statements, which are

based on current views of the Company’s management on future events.

This presentation has been prepared by the Company. The information in this presentation has not been independently verified. No representation,

warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the

information and opinions in this presentation. None of the Company or any of its directors, officers, employees, agents or advisers, or any of their

respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from

any use of this presentation or its contents or otherwise arising in connection with this presentation.

Although this document has been prepared based on the information contained in the updated draft Thai prospectus, which is currently under the

consideration of the Securities and Exchange Commission of Thailand (the “Thai SEC”), it has not been and will not be registered as a prospectus

with the Thai SEC and accordingly, this document may not be distributed, either directly or indirectly, to the public. Further, this document and any

materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a

citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be

contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

Any decision to purchase or subscribe for securities in the Company should be made solely on the basis of information contained in the prospectus

to be published in respect of the offering and no reliance should be placed on any information other than that contained in the prospectus.

DISCLAIMER

3

TABLE OF CONTENTS

Background and business

Where we are so far

Key financial performance

Where we will be

Key investment highlights

Appendix

4

Company structure and shareholding structure

THAILAND

SINGAPORE

INTERNATIONAL

Parent and subsidiaries

DO DAY DREAM

Intermediary in trading

with foreign customers

DO DAY DREAM TRADING

100%

Investment arm for

overseas businesses

DO DAY DREAM HOLDING

100%

Future potential partners to do

overseas business

POTENTIAL PARTNERS

Domestic Distributor

NAMU LIFE PLUS

100%

International Headquarter

DO INFINITE DREAM

100%

Dermatological company

DREAM DERMATOLOGY

95%

5

Extensive Product Portfolio Covering Five Categories of Skincare

FACIAL

SKIN CARE

1

BODY CARE

2

FACIAL

CLEASNING

3

SUNSCREEN

4

BODY

CLEANSING

5

GIFTSET

6

Facial

Cream

SYN-AKE

MIST

Mask Shot Concentrate Facial

Cream

Miracle Royal Jelly Facial

Cream

Day Cream Overnight Firming

Mask

7 Days Mask

Sheet

Gold Facial

Cream

Body

Booster

Body Booster

SPF 30/PA+++

Cleansing Whip Soap Essential

Toner

Namu Facial

Jelly Wash

Sunscreen Sunscreen

CC

Creme Body Wash

6

TABLE OF CONTENTS


Where we are so far


Where we will be


Appendix

7

Market Size of Facial Moisturizer

2017: THB 42 billion

Growth: 8%

Market Share

Apr-17: 4%

Apr-18: 6%

No. 6 in Thailand

Source: Euro Monitor, The Nielsen Company

Increased Market Share from

both Existing and New Products

New Snailwhite Sachets play

vital role in capturing Market Share

No. 5 in Supermarket/

Hypermarket

Market Share

Apr-17: 5%

Apr-18: 6%

Supermarket/Hypermarket

No. 4 in Convenience

Stores

Market Share

Apr-17: 2%

Apr-18: 9%

Convenience Stores

We are a top-of-mind brand in Thailand

8

Do Day Dream is one of the only 2 Thai manufacturers among top 10 (1/2)

28

.4%

15

.2%

11

.5%

10

.2%

6.5

%

3.7

%

5.7

%

3.8

%

2.3

%

1.7

%

26

.3%

14

.2%

12

.1%

9.4

%

7.7

%

6.0

%

4.7

%

3.7

%

2.5

%

1.2

%

L'Oreal Procter &Gamble

Beierdorf Uniliver Others Do Day Dream Smooth-E Mentholatum Aisance Johnson &Johnson

SKUs

Apr 17

Apr 18

Market Share (%)

80 SKUs 49 SKUs 60 SKUs 31 SKUs 28 SKUs 8 SKUs 19 SKUs 14 SKUs 26 SKUs 10 SKUs

Top 10 Manufacturers in Thailand (Facial Moisturizer)

…

With the lowest No. of

SKUs among the top

brands, there are rooms

for expanding wider

range of products.

62% Growth

9

Do Day Dream is one of the only 2 Thai manufacturers among top 10 (2/2)

Rank Brand Product Size Market Share

Apr 18

1 Snail White Snail Wh.Secretion Filtra.Moist.Facial 50 Ml 1.9%

2 Garnier Ageless White Day Serum Sachet 7 Ml 1.7%

3 Garnier Sakura White Pinkish SPF21 Pa+++ Sachet 7 Ml 1.7%

4 Garnier Light Complete White SPF20 Serum Sachet 7 Ml 1.5%

5 Snail White Gold SPF30 PA+++ Cr. 7 Ml 1.5%

6 Dermo Expertise Revitalift Anti-Wrinkle Spf23 50 Ml 1.3%

7 Smooth-E Natural Source Cream 10 Gm 1.1%


9 Dermo Expertise Revitalift Anti-Wrinkle Night Cream 50 Ml 1.0%

10 Pond's Age Miracle Wrinkle Correction Sachet 7 Gm 1.0%

Facial Moisturizer SKU Ranking in Modern Trade Channels as of Apr 2018

(Supermarket, Hypermarket, Personal Care Store and Convenience Store)

No. 1 Market share in

Modern Trade

No. 5 Market share in

Modern Trade

• Snail White bundled set was ranked number 1 in Modern Trade Channels

• The newly launched SKU “Snailwhite Gold 7 Ml quickly rises to No.5 just within the second month of launch in Apr’18.

10

TABLE OF CONTENTS


Where we are so far


Where we will be


Appendix

11

Revenue from sales in 1Q18

Product Group

Distribution Channels

2017 1Q17 1Q18

Facial Skin Care 81%

Body Care

1%

Facial Cleansi

ng 6%

Body Cleansi

ng 5%

Sunscreen 4%

Others 3%


Body Care

1%

Facial Cleansi

ng 3%

Body Cleansi

ng 6%

Sunscreen 2%

Others 7%

2017 1Q17 1Q18

Modern Trade 29%

Traditional

Trade and

Distribution

Partner 45%

Export 25%

Others 0%

Modern Trade 37%

Traditional

Trade and

Distribution

Partner 43%

Export 20%

Others 1%


Body Care

4%

Facial Cleansi

ng 4%

Body Cleansi

ng 8%

Sunscreen 4% Others

3%

Modern Trade 29%

Traditional

Trade and

Distribution

Partner 41%

Export 30%

Others 0%

Revenue from sales

Unit: Million baht

262 299

93 75

355 374

1Q17 1Q18

Domestic Overseas Total

5% Growth

14% Growth

-19% Growth

26%

74%

98%

20%

80%

99%

12

Overseas sales

53

201

2Q16 2Q17

21

93

1Q16 1Q17

93

75

1Q17 1Q18

Quarter 1 Quarter 2 1Q17 vs 1Q18

32

146

3Q16 3Q17

37

55

4Q16 4Q17

353% Growth

280% Growth

362% Growth

47% Growth

-19% Growth

Quarter 3

55

75

4Q17 1Q18

4Q17 vs 1Q18

36% Growth

Quarter 4

2016 baseline

2017 baseline

2018 baseline

CFDA requires some adjustments of the packages, expected to be complete within June – July 2018.

13

28%

32% 3-year target: 28 – 32%

Cost of goods sold in 1Q18

248

349

375

535

110 101

56.70%

36.40%

30.3%

31.9% 31.10%

27.00%

2014 2015 2016 2017 1Q17 1Q18

Raw material and Packaging Freight Labor Depreciation Others % of Sales

COGS

• COGS to sales significantly decreased from 2015

thanks to economies of scale and better bargaining

power with the suppliers which result in lower

average cost of raw material and packaging

• Significant portion of COGS attributable to raw

materials and packaging

• 1Q 2018, COGS as a % of sales continuous drop

due to product mix that the majority

contribution came from facial skin care

products, the category with high margin.

Unit: Million baht

14

Selling & administrative expenses in 1Q18

38% 3-year target: 35 – 38% 35%

Selling & administrative expenses

155

361

441.6

725

170 154

35.3%

37.8%

35.7%

43.2%

47.30%

39.70%

2014 2015 2016 2017 1Q17 1Q18

Advertising and Promotional Employee costs Freight Others

Unit: Million baht

• Selling & Administrative Expense has shown

significant increase correlated with increase in

sales activity. The increased was mainly

attributable by advertising and promotional

expenses and employee cost

• Selling and administrative expenses mainly

comprise advertising and promotional expenses

and employee expenses

• 1Q 2018, y-o-y SG&A decreased by 9.4% .The

decrease in SG&A was mainly due to the

decrease in advertising and sale promotion

expenses as there was no deferred

advertisement in 1Q18 as it did in 1Q17.

• Even though there was a launch in SnailWhite Gold

in sachet format in 1Q18, our spending for the

advertising was still within the predetermined

target.

15

24% 22%

Profitability in 1Q18

190

608

862

1140

245 273

43.3%

63.6%

69.7% 68.1%

68.90% 73.00%

2014 2015 2016 2017 1Q17 1Q18

Gross Profit % Gross Margin

37

254

441 452

80

143

8.4%

26.6%

35.5%

26.8%

22.40%

37.00%

2014 2015 2016 2017 1Q17 1Q18

EBITDA % EBITDA Margin

28

194

335 351

62 112

6.3%

20.3%

27.0%

20.8%

17.4%

29.0%

2014 2015 2016 2017 1Q17 1Q18

Net Profit % NP Margin

EBITDA Net Profit

Unit: Million baht Unit: Million baht

32%

3-year target

72%

3-year target: 68 – 72%

Gross Profit

Unit: Million baht

68%

3-year target: 22 – 24%

16

Financial position

529 776

5,460 5,551

286 401

674 652

243 375

4,786 4,899

2015 2016 2017 1Q18

Total Assets Total Liabilities Shareholders'Equity

Balance Sheet

Unit: Million baht

Key Financial Ratio 2015 2016 2017 1Q18

Days Sales Outstanding (days) 46 53 64 99

Days Inventories on Hand (FG) (days)

29 40 48 106

Days Payable Outstanding (days) 56 80 76 117

Return on Assets (%) 49.8% 51.4% 11.3% 8.2%

Return on Equity (%) 133.5% 108.6% 13.6% 9.3%

Debt to Equity Ratio (times) 1.2x 1.1x 0.1x 0.1x

Interest Bearing Debt to Equity Ratio (times)

0.5x 0.5x 0.1x -

A

B

C

A

B

C

Total liabilities increased mainly due to loan to

finance new factory

Total assets increased mainly due to increase in

account receivable and cash and cash equivalent

Total Equity increased mainly due to the initial

public offering (IPO) on Dec 2017

17

TABLE OF CONTENTS


Where we are so far


Where we will be


Appendix

18

Strong 2018 outlook from 3 key drivers

Penetrating through

convenience store and

traditional trade channel 1

• Launching Sachets (small size product) with an aim to capture new customer

segments; younger age group and those in up-country

• Mainly sold through convenience stores and traditional trade channel with

more than >400k stores across Thailand

Expansion into

King Power Duty Free 2

Vibrant opportunity

in Chinese market 3

• Broaden distribution channels through King Power Duty Free to help increase

both brand outlets and brand awareness for international consumers

• Currently sold in two out of nine branches (Srivaree and Suvarnabhumi Airport)

• Expanding to Chinese market, which has a value of more than THB 1 trillion

(RMB 200 billion), through both online platforms and offline channels

• First Thai skincare brand sold in China Duty Free

19

Thai skincare market is currently driven by “sachet”

Total Thailand SKU Ranking of Facial Moisturizer as of Apr 2018

Rank Brand Product Size Market Share

Apr 18

1 Garnier Ageless White Day Serum Sachet 7 Ml 2.4%

2 Garnier Sakura White Pinkish SPF21 Pa+++ Sachet 7 Ml 2.4%


4 Snail White Snail Wh.Secretion Filtra.Moist.Facial 50 Ml 1.6%

5 Olay Natural White Pink Fairness Sachet 7.5 Gm 1.3%

6 Pond's Age Miracle Wrinkle Correction Sachet 7 Gm 1.3%

7 Snail White Gold SPF30 PA+++ Cr. 7 Ml 1.3%

8 Pond's White Beauty Aura Boots&Clear Serum Sachet 10 Gm 1.2%

9 Dermo Expertise Revitalift Anti-Wrinkle Spf23 50 Ml 1.1%

10 Smooth-E Natural Source Cream 10 Gm 1.0%

• 7 out of 10 are sachets.

• Snail White sachets ranks as

No.4 and No.7 in CVS in Apr

2018.

• Sachet format has a huge

potential to grow through

traditional trade channels

JUN17 JUL17 AUG17 SEP17 OCT17 NOV17 DEC17 JAN18 FEB18 MAR18 APR18

Total Snail White 7 Ml Sachet Snail White Day Cream 7 Ml Sachet Snail White Gold Cream 7 Ml Sachet

CVS: Value Sales

Source: The Nielsen Company

20

Sachet products play a key role in convenient stores

4 shelves in convenient stores are dedicated

to personal care products

1 shelf is for Facial Moisturizer

50% of the shelf is for sachet products

SnailWhite

products

located on the

prime location:

the top shelf for

sachet products

Additional shelf

for sachet

products

located in the

2nd location

1

2

3

4

21

New penetration in Traditional Trade channel

1 NAMU LIFE Shop

at BTS Siam

21 Stores

Online & Special Channels

Channels Stores

Online 9

Others 11

Pan Asian

Distribution

China

Thailand Laos Cambodia Myanmar

New growth markets

Existing market stronghold

Distribution Channels Do Day Dream PLC.

>13,000 Stores

Modern Trade

Channels Stores

Beauty 49

Health&Beauty 795

Hyper 200

Department Store 47

Supermarket 277

Convenience Store 9,247

Others 2,385

>1,300 Stores

Traditional Trade

Pharmacy

Chain

>1,300 stores across

77 Provinces

Sino-Pacific Trading Co. Ltd.

• Has been distributing FMCG products

since1970

• Specializes in distributing product to about

400,000 of Traditional Trade Channels

• Distributor of global brands including Chupa

Chups, Ricola, Mentos, Tic Tac, etc

Collaboration with Sino-Pacific

22


Expansion into





Penetrating through







Vibrant opportunity

in Chinese market 3




23

King Power Duty Free Stores Expansion

No Branch Status

1 King Power Sivaree

2 King Power Suvarnabhumi Airport

3 King Power Rangnam

NEW in 2018 (entered in 1Q)

4 King Power Chiangmai Airport

NEW in 2018 (entered in 1Q)

5 King Power Phuket 2Q18

6 King Power Don Mueang Airport 2Q18

7 King Power Pattaya TBU

8 King Power Phuket Airport TBU

9 King Power Hatyai Airport TBU

• No. of Customers in King Power Stores (Total Year):

31,200,000

• % of Chinese Customers in King Power Stores (Total

Year): 55% of Total Customers

• 60% of Chinese Customers shop in Srivaree,

Rangnam, and Pattaya locations

Source: Brand Buffet, Marketing Oops, Khao Sod

24


Penetrating through



Expansion into


Vibrant opportunity

in Chinese market 3











25

China outlook in 2018

Products

with CFDA

NAMU LIFE

SNAILWHITE

FACIAL CREAM

NAMU LIFE

SNAILWHITE

CLEANSING

NAMU LIFE

SNAILWHITE

WHIPP SOAP

Online

Cross-border e-commerce

CHINA

Not required CFDA

Mainstream

online platform

Required CFDA

• Market size is much bigger than

Cross-border e-commerce.

• Allow wholesale transaction

• Lower transportation cost due

to the bundle shipments

• Cross-border is temporary

which is subject to change

according to Chinses policy.

• Not eligible for wholesale

transaction

Offline

Required CFDA

• Currently in talk with one of the

distributors

ALREADY

ENTERED

Main benefits of CFDA

• More easily accessible

in Mainstream online

platform and offline

channels which the

market is much bigger

than Cross-border e-

commerce alone

• No risk from the policy

change of Cross-border

e-commerce

26

First Thai skincare sold in Zhuhai Duty Free in China

DDD has recently got into an agreement to sell

SNAILWHITE products in Zhuhai Duty Free store, located

at the border between China and Macau. The store has

250,000of foot traffic going and out of China daily.

27

Additional Update: Oxe’Cure will be one of DDD’s brand portfolio to focus on dermatological

skin care

DO DAY DREAM

Untapped Market

?

Untapped Market

?

Untapped Market

?

Untapped Market

?

Skin care Bath and body Dermatological

Premium Mass Premium Mass Premium Mass

28

Acquisition Implication

Acquisition Implication

DDD x Oxe’Cure

1

2

3

4

5

6

Wider product coverage, less

reliance on a single brand

Expansion of customer base in

terms of both age and gender

Leverage DDD distribution

network

Better utilization of factory

capacity

Brand with the promising

profitability in 2017, despite

minimal marketing effort

Outstanding growth of anti-acne

market

THANK YOU

CONTACT US

DO DAY DREAM PLC.

Investor Relations Department

Tel: +662-917-3055

Fax: +662-917-3054

Email: [email protected]

Website: www.dodaydream.com

Contact person

Ms. Chanoknan Thiemrat (Investor Relations)

Email: [email protected]

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