[PPT] - Do Day Dream 1H 2019 Information as of period ended 30 Jun 2019 PowerPoint Presentation

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Do Day Dream 1H 2019

Information as of period ended 30 Jun 2019 Latest update on 27th Aug 2019

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Financial Reports: Key Takeaways

1. Sales revenue was heavily affected by the cancellation of

SINO pacific (distributor) contract by the end of Q2 2019

DDD has to accept returns from sino pacific which accounted in the reduction of net sales
Sales directly to TT customers shall only begin after the cancellation of SINO Pacific

Contract

2 .Modern Trade performed better QoQ despite negative market sentiment

3. The inbound tourist revenue was heavily affected by the

significant decline of the number of tourists.

4. Export revenue significantly increased QoQ from Q1 2019

as a result of ever-improving Philippines subsidiaries

5. % COGS increased in Q2 2019 compared to Q1 2019 due to

promotions imposed on aging/slow moving products to clear

ut inventory
6. Selling expense slightly increased in Q2 2019 compared to Q1

2019 due to launches of new products. This is, however, much lower than that of the same period in 2018

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Revenue from sales 1H 2019

Revenue from sales (YoY)

Unit: THB Million 558 300 176 85

100 200 300 400 500 600 700 800

1H'2018 1H'2019

Domestic Overseas 734 384

48%
46%
52%

24% 76% 22% 78%

Products Group Distribution Channels

Facial Skin Care 64% Body Care 6% Facial Cleansing 12% Body Cleansing 8% Sunscreen 3% Others 7% Facial Skin Care 77% Body Care 3% Facial Cleansing 4% Body Cleansing 9% Sunscreen 2% Others 5% Modern Trade 51% Traditional Trade and Distribution Partner 26% Export 22% Others 1% Modern Trade 37% Traditional Trade and Distribution Partner 39% Export 24%

Others 0%

1H 2018 1H 2019 1H 2018 1H 2019

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Revenue from sales 1H 2019

Revenue from sales (QoQ)

Unit: THB Million 171 129 31 53

50 100 150 200 250 300 350 400 450 500

Q1'2019 Q2'2019

Domestic Overseas 182

Unit: THB Million 258 129 101 53

50 100 150 200 250 300 350 400 450 500

1H'2018 1H'2019

Domestic Overseas 359 182

49%
50%
47%

28% 72% 29% 71% 16% 84%

Revenue from sales (YoY)

10%
25%

202

29% 71% 71%

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Revenue from sales 1H 2019

Revenue from sales (QoQ)

Unit: THB Million Unit: THB Million

50, 000, 000 100, 000, 000 150, 000, 000 200, 000, 000 250, 000, 000 300, 000, 000

1H 2018 1H 2019 Revenue from sales (6M YoY)

24%
62%
57%
20,

0 00, 00 0 20, 000, 000 40, 000, 000 60, 000, 000 80, 000, 000 100, 000, 000 120, 000, 000 140, 000, 000 160, 000, 000

Q1 2019 Q2 2019

103%
36%
12%

34% 23%

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Inbound Tourist Outlook

Source: Ministry of T

urism and Sports

Number of Inbound Tourist

7.00 6.11 8.00 6.44 3.17 2.76 3.12 2.53

0. 00
2. 00
4. 00
6. 00
8. 00
10. 00
12. 00

Q1'2018 Q2'2018 Q1'2019 Q2'2019 Other Countries China 10.17 8.87

Unit: Million

Revenue from Inbound Tourist

395,916 293,602 401,269 275,904 175,724 147,738 172,530 138,614

100, 000 200, 000 300, 000 400, 000 500, 000 600, 000 700, 000

Q1'2018 Q2'2018 Q1'2019 Q2'2019 Other Countries China 571,640

Unit: THB Million

573,798

Unit: Million Jan Dec

0.86 0.79 0.79 0.75 0.76 0.76 0.87 0.89 0.76 0.81 0.79 0.82 0.97 1.2 1 0.99 0.87 0.9 0.94 0.87 0.64 0.65 0.68 0.84 0.5 1 1.5 0.5 1 1.5

NUMBER OF CHINESE TOURIST

2017 2018 2019 11.12 488,129 8.97 448,433

19%
22%
17%
20%

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248 349 375 543 412 222 118 56.7% 36.4% 30.3% 32.5% 33.0% 30.2% 30.7% 2014 2015 2016 2017 2018 1H 2018 1H 2019

Raw material and Packaging Freight Labor Depreciation Others % of Sales

Cost of goods sold 1H 2019

COGS

Unit: THB Million 190 608 862 1131 837 512 267 43.3% 63.6% 69.7% 67.6% 67.0% 69.8% 69.4% 2014 2015 2016 2017 2018 1H 2018 1H 2019 Gross Profit % Gross Margin

Gross Profit

Unit: THB Million

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Selling & administrative expenses 1H 2019

147 331 319 581 510 263 201

33.6% 34.6% 26.5% 34.7% 40.9% 35.9% 52.2%

50.0%
30.0%
10.0%

10.0% 30.0% 50.0% 70.0%

2014 2015 2016 2017 2018 1H 2018 1H 2019

Advertising and Promotional Employee Costs Freight Others % of Sales

Selling Expense

Unit: THB Million

7 30 87 135 159 34 40

1.7% 3.2% 7.2% 8.1% 12.2% 8.8% 18.5%

50.0%
40.0%
30.0%
20.0%
10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

2014 2015 2016 2017 2018 Q1 2018 Q1 2019

Employee Cost Miscellaneous Depreciation and amortization Tax and other fee Others % Gross Margin

Administrative Expense

Unit: THB Million

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Before IPO

Profitability 1H 2019

6.3% 20.3% 27.0% 20.8% 14.2% 22.9% 2.6%

50.0%
40.0%
30.0%
20.0%
10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

2014 2015 2016 2017 2018 1H 2018 1H 2019 Net Profit % of Sales

Net Profit

Unit: THB Million

5.00 17.60 2.30 0.57 1.49 0.55 0.01

2014 2015 2016 2017 2018 1H 2018 1H 2019

EPS

Unit: THB Per Share

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Leading local skin care company in Thai market, owner of NAMULIFE SNAILWHITE, Oxe’Cure, PRETTii FACE and SoS

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Source: The Nielsen Company * : Weighted Distribution

We are a top-of-mind brand in Thailand

Market Share of Facial Moisturizer

2017: 3.8% 2018 :4.3% 1H 2019 : 3.0%

No. 9

in Thailand

Market Share

2017 : 5.0% 2018 : 4.1% 1H 2019 : 2.3%

Supermarket/Hypermarket

No. 10

in Supermarket/ Hypermarket

No. 7

in Convenience Stores

Market Share

2017: 3.0% 2018: 6.6% 1H 2019 : 5.6%

Convenience Stores Open Trade Market Share

2017 : N/A 2018 : 0.3% 1H 2019 : 0.4%

Main Business

No. 14

in Convenience Stores

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12 Note : Information as of 1 Sep 2019

New Product

Extensive Product Portfolio Covering Five Categories of Skincare

21 Products 43 SKUs 6 Products 12 SKUs 4 Products 4 SKU 1 Products 1 SKU

Official Launched Jun 2019

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2023

To be top 3 market leader in Thai facial skin care

2038

To be top 3 market leader in Asian facial skin care

2030

To be top 3 market leader in ASEAN facial skin care

Mission Statement

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1.Modern Trade

Market size: THB 34,468 mm

2.Traditional Trade

Market size: THB 30,560 mm

3.Inbound Tourist

Market size: THB 9,728 mm

4.Export

Channels

Growing the market share

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Growing the market share

1.Modern Trade

POS: 13,000/ 15,000 Market size : THB 34,468 mm

Expand from online channel to mainstream Focus on CVS over Thailand within 2019 New Brand launch on Mar 2019, List-in Modern Trade Channel

(Focus on specialty Store)

Expand to new modern trade store

(Focus on Drug Store)

Domestic penetration over 85%

PENETRATION Channels

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Growing the market share

2.Traditional Trade

POS: 5,000 / 400,000 Market size: THB 30,560 mm

PENETRATION

Market Share Distribution 72% 28%

Leader in TT channel* At the end of Sep 2018*

1% 2% - 3%

Rooms for improvement

5% 30%

Target - 2023 Channels

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Growing the market share

2.Traditional Trade

POS: 5,000 / 400,000 Market size: THB 30,560 mm

PENETRATION Expand penetration in traditional trade channel Strengthen relationship with upcountry distribution centers Direct communication to target customers

1 2 3

1% 2% - 3%

Rooms for improvement

5% 30%

Target - 2023 Channels

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Growing the market share

2.Traditional Trade

POS: 5,000 / 400,000 Market size: THB 30,560 mm

Wholesalers, retailer and mom-and-pop store in upcountry

Expand penetration and build relationship with wholesalers, retailer in upcountry

Channels

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Growing the market share

2.Traditional Trade

POS: 5,000 / 400,000 Market size: THB 30,560 mm

Direct communication to target customers

Communication for TT Channel SNAILWHITE roadshow in Northeastern part of Thailand

Channels

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Growing the market share

3.Inbound Tourist

King Power DFS: 8 / 9 Market size: THB 9,728 mm

CHANNEL COVERAGE

Increase point of sale in tourist attractions to capture more potential customers Revenue from Inbound Tourist

THB mm

2017 2018

1. Bangkok

596,281 681,329

2. Phuket

374,902 424,565

3. Chonburi

191,403 218,431

4. Surat Thani

75,326 85,884

5. Krabi

68,460 78,834 Channels

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Growing the market share

4.Export CHINA

Distribution model

Available only in Online

Channel (VIP, TAOBAO,JD)

4 Products with CFDA
Created brand awareness

via online campaign with beauty influencers

HONGKOKG

Distribution model

Available in Watsons,

SASA and Mannings Store

Created brand awareness

via online channel and out

f home media s

PHILIPPINES

Partnership Model

Available in Watsons 330 stores
Launch campaign “Unlock

Beauty” with Beauty influencers to created brand awareness Channels

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Philippines

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Philippines

B I L L B O A R D S A N D M A L L M A R K E T I N G

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Philippines

S N A I L W H I T E S T U D I O : W O K E U P L I K E T H I S P O R T R A I T S

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Philippines

P R E S S A N D C O N T E N T F E A T U R E S

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Philippines

A W A R D S

Most Successful New Brand Of The Year (Beauty)
Most Promising New Product Of The Year

“SNAILWHITE WHIPP SOAP”

Best Exclusive Product Of The Year

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Growth Drivers 2019

Philippines

Create Brand Awareness and Expand Distribution Channel

New Product/Brand Launch

Total New 8 Products, 13 SKUs

Traditional Trade Channel

Expand Distribution Coverage from 2% to 5% Increase point of sales in top tourist provinces

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Do Day Dream is still young. We have a big dream. We never stop growing to be the market leader.

Road to 2023

Mission: Top 3 market leader in Thai facial skin care in 2023

(current: No. 6 as of 2018)

To be top 3: Gain at least 12% market share

(current market share 4.3% as of 2018)

How to grow the market share:

Domestic channels / new country / new product

Modern Trade: Increase variety of products
Traditional Trade: Increase penetration (from 1% to target 30%)
Inbound Tourist: Effective communication tools

(airport WI-FI, KOL) and Increase present in tourist provinces

Export: New overseas subsidiaries and distributors

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TABLE OF CONTENTS

Appendix

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Appendix: Financial position

(THB mn) Dec 31, 2017 Dec 31, 2018 31 Mar, 2019 30 Jun 2019 Cash and cash equivalents 4,388.52 1,774.48 1,212.31 1,452.97 Current investments

2,399.56

2,903.01 2,510.90 Trade accounts receivable and other receivables 429.18 265.89 249.10 238.46 Inventories 291.68 391.58 397.72 384.28 Property, plant and equipment 278.56 274.22 266.80 262.04 Intangible assets 16.50 108.83 108.24 107.62 Other 56.05 63.64 37.62 41.70 Total Assets 5,460.49 5,248.20 5,174.80 4,997.97 Short-term loans from financial institutions 267.14

Trade accounts payable and other payables

309.28 156.90 146.31 150.78 Long-term loans from financial institutions 68.19 91.20

Other

29.39 17.38 29.79 18.29 Total liabilities 674.00 265.48 176.10 169.07 Issued and paid-up share capital 316.00 317.89 317.89 317.89 Share premium on ordinary shares 4,347.91 4,399.86 4,399.86 4,399.86 Retained earnings (Inc. legal reserve) 154.29 269.34 288.28 118.26 Other (31.71) (4.37) (7.33) (7.11) Total equity 4,786.49 4,982.72 4,998.70 4,828.90 Total liabilities and equity 5,460.49 5,248.20 5,174.80 4,997.97

Balance Sheet

Assets

Cash spent as working capital to acquire other assets such as higher inventories or loan payments to financial institutions mainly contributed to the decline in total assets.

Liabilities

Total liabilities fell as short-term loans from financial institutions and trade payables and other payables dropped.

Equity

The increase in shareholders’ equity was mainly caused by the Company’s retained earnings from the Company’s performance.

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Appendix: Profit and loss statement

Statements of comprehensive income

Year ended December 31, Quarter ended (3 months) (THB mn) 2016 2017 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Revenues Sales 1,236.8 1,674.4 1,249.6 355.2 517.2 384.0 418.0 374.3 359.2 249.8 266.3 202.23 182.19 Domestic sales 1,090.7 1,161.7 982.2 262.3 298.6 237.6 380.4 299.1 258.5 207.8 216.7 170.86 127.13 Export sales 146.2 512.8 267.4 92.9 218.6 146.4 37.6 75.2 100.7 41.9 49.6 31.37 55.06 Service income 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other income 3.2 9.8 54.4 3.7 1.7 1.8 2.7 12.3 19.8 11.2 11.0 15.23 16.95 Total revenues 1,240.2 1,684.3 1,304.0 358.9 518.9 385.8 420.7 386.6 379.0 261.0 277.3 217.46 199.14 Expenses Cost of sales 374.8 534.9 412.3 110.5 148.0 139.0 145.8 101.0 120.7 97.7 92.9 54.04 63.78 Selling expenses 354.5 580.9 510.5 146.2 146.6 147.4 140.6 119.6 143.4 108.7 138.8 97.10 103.41 Administrative expenses 87.1 143.4 158.7 23.8 39.2 41.9 30.1 34.1 41.1 52.0 31.5 40.14 42.50 Total expenses 816.4 1,259.2 1,081.6 280.5 333.8 328.3 316.4 254.7 305.2 258.4 263.2 191.28 209.68 Profit before finance cost and CIT 423.8 425.1 222.4 78.4 185.1 57.5 104.3 131.9 73.8 2.6 14.1 26.18 (10.54) Finance cost (5.8) (12.0) (9.5) (2.8) (3.1) (3.4) (2.7) (3.2) (2.9) (2.2) (1.2) (0.51) (0.04) Profit before CIT 418.0 413.1 212.9 75.6 181.8 54.1 101.6 128.7 70.9 0.4 12.9 25.67 (10.58) Income tax (82.8) (62.1) (28.4) (13.2) (35.2) (9.6) (4.1) (16.6) (7.9) (0.2) (3.7) (6.33) 2.06 Profit for the year 335.2 351 184.5 62.4 146.6 44.4 97.5 112.1 63.0 0.2 9.2 19.34 (8.52) Earning per share (Adj.) 2.34 1.50 0.58 0.28 0.65 0.19 0.38 0.35 0.20 (0.002) 0.03 0.06 (0.03)

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Key Financial Ratio 2017 2018 Q1 2019 Q2 2019 Days Sales Outstanding (days) 64 93 97 103 Days Inventories on Hand (days) 187 299 657 589 Days Inventories on Hand (FG) (days) 48 101 242 225 Days Payable Outstanding (days) 76 76 80 84 Cash Cycle (days) 175 316 674 601

84 136 139 139 9 7 16 20 60 62 67 61 133 180 170 158 5 6 6 6 31 Dec 17 31 Dec 18 31 Mar 19 30 Jun 19

FG Semi-FG Raw Material Packaging Supply and other

292 391

Unit: Million baht

Packaging

7%

A B C

DSO increased due to revenue from sale declined dramatically at 25% from last year DIO significant changed came from the increasing

f inventories

2018, FG decreased QoQ but Packaging increased due to new product launch in Q4

Inventories 397

3%

Appendix: Cash Cycle

384

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Online Cross-border e-commerce CHINA

Not required CFDA

Mainstream

nline 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

NAMU LIFE SNAILWHITE SYN-AKE MIST

Q3 2018

NAMU LIFE SNAILWHITE WHIPP SOAP

Q1 2018

NAMU LIFE SNAILWHITE CLEANSING

Q1 2018

NAMU LIFE SNAILWHITE FACIAL CREAM

Q1 2018

Appendix: China outlook Products with CFDA

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THAILAND SINGAPORE INTERNATIONAL

Parent and subsidiaries DO DAY DREAM

Intermediary in trading with foreign customers

DO DAY DREAM TRADING

100%

Investment arm for

verseas businesses

DO DAY DREAM HOLDING

100%

Domestic Distributor

NAMU LIFE PLUS

100%

International Headquarter

DO INFINITE DREAM

100%

Dermatological Skincare DREAM DERMATOLOGY

95%

Skincare for millennials SKIN MAKE SMILES

70%

Future potential partners to do

verseas business

POTENTIAL PARTNERS

Philippines Distributors

DO DAY DREAM PHILLIPPINES CORPORATION

51%

Appendix: Company structure and shareholding structure

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Thailand Market Outlook

29.7 46.1 66.6 5.3 6.7 7.8 13.7 18.7 23.8 5.1 8.5 11.1 2.2 4.2 7

2012 2017 2022F

Thailand Skincare Market Size

Facial Care Body Care Facial Cleasers Body Cleasing Sunscreen

Unit: THB Billion

7% Facial Care 7.64% Sunscreen 10.59% Body Care 3.03% Facial Cleansers 4.95% Body Cleansing 5.46% 2017 -2022F CAGR Consumer Trend

Consumers are now seeking sachet as both

trial and regular products which allow them to try a new variants easily

Consumers are shifting away from chemical-

containing products as they perceive natural ingredients to be beneficial for skin care

Aging Society in Thailand supports the

growth for anti-aging segment

Source: Euromonitor Anti-aging UV/Whitening

Basic Care Oil Control

116 52 84

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Philippines

Philippines Market Outlook

5.9 8 10.9 7.2 9.5 12 6.6 8.6 10.1 1.2 1.6 1.9 0.2 0.4 0.6

2012 2017 2022F

Philippines Skincare Market Size

Facial Care Body Care Facial Cleasers Body Cleasing Sunscreen

Unit: THB Billion

5% Facial Care 6.38% Sunscreen 8.72% Body Care 4.82% Facial Cleansers 3.21% Body Cleansing 2.78% 2017 -2022F CAGR Consumer Trend

Consumer’s desire to improve

their looks was reflected in their

ngoing acceptance of global

trends, together with increasing purchasing power.

Consumer are not only adding

more such products to their daily skin care routines but are also trying out different formats

High income consumers look for

more effective and gentler products

Source: Euromonitor 35 28 21

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CONTACT US DO DAY DREAM PLC. Investor Relations Department Tel: +662-917-1219 Fax: +662-917-3054 Email: ir@dodaydream.com Website: www.dodaydream.com Contact person

Ms. Chanoknan Thiemrat (Investor Relations)

Email: Chanoknan.t@dodaydream.com