Do Day Dream Opp Day 1Q 2019 Information as of period ended 31 Mar - - PowerPoint PPT Presentation

Do Day Dream Opp Day 1Q 2019

Information as of period ended 31 Mar 2019 Latest update on 29th May 2019

2

Revenue from sales 1Q 2019

Revenue from sales (YoY)

Unit: THB Million 299 171 75 31

Q1'2018 Q1'2019

Domestic Overseas 374 202

• 46%
• 43%
• 58%

20% 80% 16% 84%

Products Group Distribution Channels

Facial Skin Care 76% Body Care 4% Facial Cleansing 4% Body Cleansing 5% Sunscreen 4% Others 8% Facial Skin Care 81% Body Care 0% Facial Cleansing 3% Body Cleansing 6% Sunscreen 2% Others 8% Modern Trade 43% Traditional Trade and Distribution Partner 41% Export 15% Others 0% Modern Trade 37% Traditional Trade and Distribution Partner 43% Export 20%

Others 0%

Q1 2018 Q1 2019 Q1 2018 Q1 2019

3

Revenue from sales 1Q 2019

Revenue from sales (QoQ)

Unit: THB Million 217 171 49 31

Q4'2018 Q1'2019

Domestic Overseas 266 202

Unit: THB Million 299 171 75 31

Q1'2018 Q1'2019

Domestic Overseas 374 202

• 46%
• 43%
• 58%
• 24%
• 21%
• 37%

20% 80% 16% 84% 20% 80% 16% 84%

Revenue from sales (YoY)

4

Revenue from sales 1Q 2019

Revenue from sales (QoQ)

Unit: THB Million Unit: THB Million

Modern Trade Traditional Trade Inbound Tourists Export

Q1 2018 Q1 2019 Revenue from sales (YoY)

• 34%
• 60%
• 57%

Modern Trade Traditional Trade Inbound Tourists Export

Q4 2018 Q1 2019

• 5%
• 37%
• 40%
• 29%

5%

5

Inbound Tourist Outlook

Source: Ministry of Tourism and Sports

Number of Inbound Tourist

7.00 7.58 8.00 3.17 2.16 3.12

Q1'2018 Q4'2018 Q1'2019 Other Countries China 10.17 9.74

Unit: Million

Revenue from Inbound Tourist

395,916 372,033 401,269 175,724 116,097 172,530

Q1'2018 Q4'2018 Q1'2019 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

6

Cost of goods sold 1Q 2019

248 349 375 543 412 101 54 56.7% 36.4% 30.3% 32.5% 33.0% 27.0% 26.7% 2014 2015 2016 2017 2018 Q1 2018 Q1 2019

Raw material and Packaging Freight Labor Depreciation Others % of Sales

COGS

Unit: THB Million 190 608 862 1131 837 273 148 43.3% 63.6% 69.7% 67.6% 67.0% 73.0% 73.3% 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Gross Profit % Gross Margin

Gross Profit

Unit: THB Million

7

Selling & administrative expenses 1Q 2019

147 331 319 581 510 120 97

33.6% 34.6% 26.5% 34.7% 40.9% 32.0% 48.0%

• 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

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

8

Before IPO

Profitability 1Q 2019

28 194 335 351 184 112 19

6.3% 20.3% 27.0% 20.8% 14.2% 29.0% 8.9%

• 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 Net Profit % of Sales

Net Profit

Unit: THB Million

5.00 17.60 2.30 0.57 1.49 0.35 0.06

2014 2015 2016 2017 2018 Q1 2018 Q1 2019

EPS

EPS

Unit: THB Per Share

9

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

10

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% Q1 2019 : 3.0%

• No. 9

in Thailand

Market Share

2017 : 5.0% 2018 : 4.1% Q1 2019 : 2.4%

Supermarket/Hypermarket

• No. 10

in Supermarket/ Hypermarket

• No. 7

in Convenience Stores

Market Share

2017: 3.0% 2018: 6.6% Q1 2019 : 5.4%

Convenience Stores Open Trade Market Share

2017 : N/A 2018 : 0.3% Q1 2019 : 0.5%

Main Business

• No. 14

in Open Trade

11 Note : Information as of May 2019

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

New Product

Official Launched 20 May 2019

30 ml, 1,390 THB 7 ml, 39 THB

Extensive Product Portfolio Covering Five Categories of Skincare

12

13

Offline Media

14

Online Media

15

Online Media

16

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

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

19

Growing the market share

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

20

Growing the market share

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

21

Growing the market share

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

22

Growing the market share

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

23

Growing the market share

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

24

Growing the market share

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

25

Growing the market share

Growing the market share

4.Export

PHILIPPINES Channels

5 OUT OF 8 SKUS WIN BEAUTYMNL BEST OF BEAUTY AWARDS CC SUNSCREEN WINS COSMO SUMMER BEAUTY BUCKET LIST’S BEST FACE SUNSCREEN

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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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2019 Target: Sale growth 20%

• 10% Channel expansion
• 7% TT expansion
• 3% Inbound tourist
• 5% new product
• 5% PH

2018

Traditional Trade Inbound Tourist New Product/ New Brand Philippines

3,000

(USD 93.75 mm)

Traditional Trade New Product Overseas 400 450 700

2023 Target: THB 3,000 mm in sales 2019 2023 2019 Target: Sale growth 15%

Unit: THB mm A B C D 1 2 3

2019 Target: Sale growth 15%

• 7% TT expansion
• 3% Inbound tourist
• 5% new product
• 5% Philippines

2023 Target: 3,000 MB in sales

• THB 700 mm from Traditional Trade
• Improve penetration to 30%
• THB 450 mm from New Products
• Increase variety of products

to 40 products

• THB 400 mm from Overseas
• Growth in Philippines and new

countries

A B C D

10% Channel expansion

1 2 3

2019 & 2023 Perspective

1,250 1,450

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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 Cash and cash equivalents 4,388.52 1,774.48 1,212.31 Current investments

• 2,399.56

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

• Trade accounts payable and other payables

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

• Other

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

Balance Sheet

• Assets

Cash spent as working capital to acquire

• ther 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

• ther 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) 2014 2015 2016 2017 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Revenues Sales 438.0 955.1 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 Domestic sales 354.3 775.1 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 Export sales 83.7 180.0 146.2 512.8 267.4 92.9 218.6 146.4 37.6 75.2 100.7 41.9 49.6 31.37 Service income

• 0.0

0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other income 0.1 1.6 3.2 9.8 54.4 3.7 1.7 1.8 2.7 12.3 19.8 11.2 11.0 15.23 Total revenues 438.1 956.7 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 Expenses Cost of sales 248.2 347.5 374.8 534.9 412.3 110.5 148.0 139.0 145.8 101.0 120.7 97.7 92.9 54.04 Selling expenses 147.4 330.9 354.5 580.9 510.5 146.2 146.6 147.4 140.6 119.6 143.4 108.7 138.8 97.10 Administrative expenses 7.4 30.3 87.1 143.4 158.7 23.8 39.2 41.9 30.1 34.1 41.1 52.0 31.5 40.14 Total expenses 403.0 708.7 816.4 1,259.2 1,081.6 280.5 333.8 328.3 316.4 254.7 305.2 258.4 263.2 191.28 Profit before finance cost and CIT 35.1 248.0 423.8 425.1 222.4 78.4 185.1 57.5 104.3 131.9 73.8 2.6 14.1 26.18 Finance cost (0.4) (3.9) (5.8) (12.0) (9.5) (2.8) (3.1) (3.4) (2.7) (3.2) (2.9) (2.2) (1.2) (0.51) Profit before CIT 34.7 244.1 418.0 413.1 212.9 75.6 181.8 54.1 101.6 128.7 70.9 0.4 12.9 25.67 Income tax (7.2) (50.2) (82.8) (62.1) (28.4) (13.2) (35.2) (9.6) (4.1) (16.6) (7.9) (0.2) (3.7) (6.33) Profit for the year 27.5 193.9 335.2 351 184.5 62.4 146.6 44.4 97.5 112.1 63.0 0.2 9.2 19.34 Earning per share (Adj.) 5.0 17.6 2.34 1.50 0.58 0.28 0.65 0.19 0.38 0.35 0.20 (0.002) 0.03 0.06

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Statements of financial position Statements of cash flows

As at December 31, (THB mn) 2014 2015 2016 2017 2018 Cash and cash equivalents 41.7 73.9 41.5 4,388.5 1,774.5 Total current assets 181.7 378.7 512.9 734.0 4,836.6 Total non-current assets 69.0 149.8 262.6 338.0 411.6 Total assets 250.7 528.5 775.5 5,460.5 5,248.2 Total current liabilities 140.4 235.2 353.2 617.2 194.5 Interest bearing debt 88.9 126.8 195.7 335.3 91.2 Total liabilities 202.6 286.0 400.5 674.0 265.5 Total shareholders’ equity 48.1 242.5 375.0 4,786.5 4,982.7 Total liabilities and shareholders’ equity 250.7 528.5 775.5 5,460.5 5,248.2 Year ended December 31, (THB mn) 2015 2016 2017 2018 Net cash flows from operating activities 83.3 218.8 245.3 88.6 Net cash flows from (used in) investing activities (86.5) (114.0) (96.3) (2,437.4) Net cash flows used in financing activities 35.4 (137.2) 4,198.0 (267.4) Cash and cash equivalents at end of year/period 73.9 41.5 4,347.0 1,774.5

Appendix: Balance sheet and cash flow statement

33

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

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

FG Semi-FG Raw Material Packaging Supply and other

292 391

Unit: Million baht

FG +2% Packaging

• 5%

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 +1%

Appendix: Cash Cycle

34

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

35

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

36

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

37

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

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