Opportunity Day
Information as of 2Q18 Latest update on 27th Aug 2018
Opportunity Day Information as of 2Q18 Latest update on 27 th Aug - - PowerPoint PPT Presentation
Opportunity Day Information as of 2Q18 Latest update on 27 th Aug 2018 DISCLAIMER 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
Information as of 2Q18 Latest update on 27th Aug 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
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.
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Background and business Where we are so far 2H 2018 Outlook Key financial performance Appendix
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2012-2010
to focus on OEM Business
registered and paid-up capital THB 1 mn at par value
2013
and launched the first product, “SNAILWHITE SECRETION FILTRATE MOISTURE FACIAL CREAM”
Instagram) and traditional trade
climate and skin of SEA countries
market: the Premium-Mass
2014
and expanded into body care product
trade and export to China, Hong Kong, Myanmar and Cambodia
THB 1 mn to THB 10 mn for business expansion
2015
Plus Co., Ltd to be the Company’s local distribution arm
products of NAMU LIFE SNAILWHITE and expanded into sunscreen and cleansing products
factory located in Rojana Industrial Park and started to renovate new plant
2016
products of NAMU LIFE SNAILWHITE and expanded into body cleansing
the new plant located in Rojana Industrial Park in October 2016
capital to THB 225 mn, focusing on international expansion
2017
products of NAMU LIFE SNAILWHITE in facial skin care and body care
small size products (Sachet) selling through leading convenience stores
Exchange of Thailand
Dream Co., Ltd to be IHQ for the Company’s international business
CHINA HONG KONG
Our Journey Since 2010 has seen us become a leading skincare company in Thailand
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VISION MISSION CORE VALUES
To be 1 of top 3 market Leaders in the Asian Beauty industry We create healthy skin for everyone to be truly beautiful in their own unique way
DYNAMIC
Robust growth while always being adaptive
DIFFERENT
Fresh and uniquely innovative
DEVELOP
Commitment to continuous improvement for sustainability and stability
Do Day Dream PLC. is a fast growing skincare manufacturer and distributor in Bangkok,
reached THB 1.67 bn sales in 2017, within 6 years, or just 4 years after the launch of NAMU LIFE SNAILWHITE. Our customers include retail customers, local distributors and international distributors in several countries in Asia.
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Philippines Distributors
DDD KCA Corporation THAILAND SINGAPORE INTERNATIONAL
Parent and subsidiaries DO DAY DREAM
Intermediary in trading with foreign customers
DO DAY DREAM TRADING
100%
Investment arm for
DO DAY DREAM HOLDING
100%
Domestic Distributor
NAMU LIFE PLUS
100%
International Headquarter
DO INFINITE DREAM
100%
Dermatological company
DREAM DERMATOLOGY
95%
Future potential partners to do
POTENTIAL PARTNERS
51%
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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
As of 30 June 2018
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FACIAL SKIN CARE 1 BODY CARE 2 FACIAL CLEASNING 3 BODY CLEANSING 4
Facial Acne Lotion Anti-Melasma Cream Body Acne Spray Liquid Cleanser Body Wash pH5.5 Sulfur Soap
5 GIFTSET
As of 30 June 2018
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Background and business Where we are so far 2H 2018 Outlook Key financial performance Appendix
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Market Size of
Facial Moisturizer 2017: THB 42 billion Growth: 8%
Market Share
Q2’17: 4% Q2’18 :5%
in Thailand
Source: Euro Monitor, The Nielsen Company New Snailwhite Sachets play vital role in capturing Market Share
in Supermarket/ Hypermarket
Market Share
Q2’17: 4% Q2’18: 4% Supermarket/Hypermarket
in Convenience Stores
Market Share
Q2’17: 2% Q2’18: 8% Convenience Stores
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28.8% 14.9% 11.7% 10.0% 6.8% 3.7% 5.5% 3.7% 2.3% 1.6% 26.3% 14.3% 12.1% 9.7% 7.7% 5.2% 4.5% 3.7% 3.5% 1.2% L'Oreal (Thailand) Procter & Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Other Manufacturer Dodaydream Smooth-E Mentholatum. Aisance Johnson & Johnson Consumer SKUs Q2'17 Q2'18 Market Share (%)
78 SKUs 45SKUs 63SKUs 29 SKUs 30 SKUs 8 SKUs 18 SKUs 14 SKUs 24 SKUs 7 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. 40%
Growth
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Facial Moisturizer SKU Ranking in Modern Trade Channels as of Q2 2018 (Supermarket, Hypermarket, Personal Care Store and Convenience Store)
Market share in Modern Trade
Rank Brand Product Size Market Share 2Q 2018 1 Garnier Sakura White SPF 20 PA+++ Sachet 7 Ml 1.8 2 Garnier Ageless White Day Spf30 Pa+++ Serum Sachet 7 Ml 1.7 3 Garnier Light Complete White SPF20 Serum Sachet 7 Ml 1.4 4 Snail White Gold SPF30 PA+++ Cr. Sachet 7 Ml 1.3 5 Snail White Snail White Secretion Filtrate 50 Ml 1.2 6 Dermo Expertise Revitalift Anti-Wrinkle Spf23 50 Ml 1.1 7 Smooth-E Natural Source Cream 10 Gm 1.0 8 Snail White Day Cream SPF20 PA+++ Sachet 7 Ml 0.9 9 Olay Total Effect 7In1 Day Spf15 50 Gm 0.9 10 Pond's Age Miracle Wrinkle Correction Sachet 7 Gm 0.9
Market share in Modern Trade
Market share in Modern Trade
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Background and business Where we are so far 2H 2018 Outlook Key financial performance Appendix
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Penetrating through convenience store and traditional trade channel
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to capture new customer segments; younger age group and those in up-country
traditional trade channel with more than >400k stores across Thailand
Expansion into King Power Duty Free
2
Vibrant opportunity in Chinese market
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Duty Free to help increase both brand outlets and brand awareness for international consumers
more than THB 1 trillion (RMB 200 billion), through both online platforms and offline channels
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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 NEW in 2018 (entered in 2Q) 6 King Power Don Mueang Airport NEW in 2018 (entered in 2Q) 7 King Power Pattaya 3Q18 8 King Power Phuket Airport 3Q18 9 King Power Hatyai Airport TBU
31,200,000
Year): 55% of Total Customers
Rangnam, and Pattaya locations Source: Brand Buffet, Marketing Oops, Khao Sod
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Source: King Power SNAILWHITE Facial Cream SNAILWHITE Mask Shot
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Delayed in new product launch Fasten the development process of the new product release. Increase efficiency and reduce work duplication
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Delayed in new product launch Fasten the development process of the new product release. Increase efficiency and reduce work duplication Small product variety, unable to capture every group of customer Launch new products to serve consumer needs and capture the new customers
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DO DAY DREAM
Untapped Market
Untapped Market
Untapped Market
New Market
Skin care Bath and body Dermatological
New Brand
Premium Mass Premium Mass Premium Mass
Potential online market via social commerce channel
Launch a new brand to capture new customers in social commerce channel
Facial beauty is the main source of engine
Source : Company Estimates, Kantar World Panel Target customer Lower premium mass. Female with age between 18-35 years old Potential market: More than 5,000 million baht Communication Channel: Social media via Line, Facebook and Instagram
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Limited product size maybe incompatible with traditional
communication does not match with the target customers Add a range of new product sizing and enhance the direct communication to target customer Delayed in new product launch Fasten the development process of the new product release. Increase efficiency and reduce work duplication Small product variety, unable to capture every group of customer Launch new products to serve consumer needs and capture the new customers
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While the key contribution in sachet products are still in mass segment (Low pricing, less and 15 Baht), its growth has been declining. The true growth driver for CVS are higher priced sachet at 31-45 Baht. Triple digit growth in 2 consecutive years prove consumers are shifting toward the premium sachet segment. Market size of Facial moisturizer in convenience store Source: The Nielsen Company
66.2%
4.6% Growth
24.7% 2016 2017 2018
SKUs in each period 2018: 54 2017: 43 2016: 28 139.2% 120.2%
1.5% Growth
2,389 2,353 2,499
Unit: Million baht
53% 35% 10% 2% 44% 34% 17% 4% 39% 31% 20% 8%
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Direct communication for traditional trade channel
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Repackaged products to match with CFDA requirements together with managing old designed package to avoid customer confusion Repackage all products by using the universal packages matched with the requirements and conditions of every target country Delayed in new product launch Fasten the development process of the new product release. Increase efficiency and reduce work duplication Limited in product size which is not suitable with current distribution channel and the communication does not match with the target customers Add a range of new product sizing and enhance the direct communication to target customer Small product variety, unable to capture every group of customer Launch new products to serve consumer needs and capture the new customers
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Modern Trade Traditional Trade Special Trade Export 8.5% Growth
Growth 40.2% Growth
Growth
Revenue from sales
Unit: Million baht 561 558 311 176
100 200 300 400 500 600 700 800 900 1,0002Q17 2Q18 Domestic Overseas
Growth
36% 64%
98%
24% 76%
94%
Growth
872 734
Growth
Revenue by distribution channels
Special Trade includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists.
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The restructure of traditional trade channel after collaboration with Sino-Pacific Complete the restructuring of sales system and customer migration within 3Q 2018
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Lack of understanding and experience in traditional trade channel and have no focus in a certain region Create marketing strategy for traditional trade channel and plan to focus on the Northeastern part of Thailand as a top priority to capture a huge potential target market The restructure of traditional trade channel after collaboration with Sino-Pacific Complete the restructuring of sales system and customer migration within 3Q 2018
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Million people Population Ranking Total Poplation Age 18-35 Central 22.7 5.7 Bangkok 5.7 1.4 Chonburi 1.6 0.4 Samuthprakarn 1.3 0.3 Northern 12.1 2.9 Chiangmai 1.7 4.2 Chiangrai 1.3 0.3 Nakhonsawan 1.1 0.3 Southern 9.4 2.5 Nakornsrithammarat 1.5 0.4 Songkhla 1.4 0.4 Suratthani 1.0 0.3 Northeastern 22.0 5.7 Nakhonratchasima 2.6 0.7 Ubonratchathani 1.9 0.5 Khonkaen 1.8 0.5 Top priority Source: National Statistical Office of Thailand
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Seek for new distribution channel Increase the use of beauty advisor to provide product information in modern trade channels
Source: The Nielsen Company CVS SKU Ranking of Facial Moisturizer as of Q2’2018 1 Garnier Sakura White Pinkish Spf21 Pa+++ 7 Ml 5.7 97 9.2 53 2 Garnier Ageless White Spf30 Pa+++ 7 Ml 5.4 95 8.8 45 3 Garnier Light Complete White Speed SPF20 Pa+++ 7 Ml 4.5 97 7.4 48 4 Snail White Gold SPF30 PA+++ 7 Ml 4.2 81 0.2 1 5 Snail White Day Cream SPF20 PA+++ 7 Ml 3.1 85 0.1 1 6 Pond's Age Miracle Wrinkle Day 7 Gm 3.1 93 5.3 35 7 Smooth-E Natural Source Cream 10 Gm 2.9 76 0.0 8 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 2.5 89 1.1 8 9 Olay Natural White Pink Fairness 7.5 Gm 2.4 91 4.7 40 10 Rojukiss Other 6 Ml 2.4 74
Q2'18 Open Trade Distribution Q2'18 Convenience Distribution Q2'18 Open Trade Product Brand Rank Size Market Share Q2'18 Convenience
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Negatively affected by news related to unqualified local skin care manufacturers and products as well as the closure
care market at Don Mueang Create new business strategy by increasing new distribution channels and using beauty advisors to capture customers both wholesale market and inbound tourists Lack of understanding and experience in traditional trade channel and have no focus in a certain region Create marketing strategy for traditional trade channel and plan to focus on the Northeastern part of Thailand as a top priority to capture a huge potential target market The restructure of traditional trade channel after collaboration with Sino-Pacific Complete the restructuring of sales system and customer migration within 3Q 2018
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Expectation of inbound tourists in 2018
Million tourists China, 28% China Malaysia Korea Laos Japan India Russia Vietnam Cambodia Myanmar Other Source: Tourism Authority of Thailand, Company Estimates Expectation of inbound Chinese tourists in 2018
Million tourists Potential Market
Inbound Chinese tourists
Target customer Female Chinese tourists with age between 25-45 years old (65% of female Chinese tourists) Potential skin care market for inbound Chinese tourist: 3,000 million baht Increase benefit from inbound tourists To leverage the increase in number of tourists, we have created new business strategy to capture inbound tourists by using effective communication tools such as airport free wifi, and Chinese bloggers/influencers.
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Improve the sale structure of traditional trade channel after collaboration with Sino-Pacific Limited of understanding and experience on traditional trade channel and regional focus Lack of specialized distribution experts for China's mainstream
reliance on china Complete the restructuring sales system and transfer customer within 3Q 2018 Revamp the marketing strategy for traditional trade channel and focusing on the largest consumer base in the Northeastern of Thailand Deal with new potential distributor who specializes in mainstream
market in China, and start a business in Philippines to capture new market and new customer base Lack of understanding and experience in traditional trade channel and have no focus in a certain region Create marketing strategy for traditional trade channel and plan to focus on the Northeastern part of Thailand as a top priority to capture a huge potential target market The restructure of traditional trade channel after collaboration with Sino-Pacific Complete the restructuring of sales system and customer migration within 3Q 2018 Negatively affected by news related to unqualified local skin care manufacturers and products as well as the closure
care market at Don Mueang Create new business strategy by increasing new distribution channels and using beauty advisors to capture customers both wholesale market and inbound tourists
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CHINA
CHINA
THB1,100 billion in 2021
and functional skin care products for a better effect.
PHILIPPINES
PHILIPPINES
5%, reaching THB33 billion in 2021
while serums are gradually becoming increasingly prominent.
INDONESIA
INDONESIA
reach THB67 billion by 2021
skin benefits. Expected to expand into new country in the second half of 2018
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Online Cross-border e-commerce CHINA
Not required CFDA
Mainstream
Required CFDA
Cross-border e-commerce.
to the bundle shipments
which is subject to change according to Chinses policy.
transaction Offline
Required CFDA
distributors
ALREADY ENTERED
Main benefits of CFDA
in Mainstream online platform and offline channels which the market is much bigger than Cross-border e- commerce alone
change of Cross-border e-commerce
NEW
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
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FB : RealKrisAquino 1,200,000+ FollowersX IG : Krisaquino 3,500,000+ FollowersX Twitter : @KrisAquino214 1,600,000+ FollowersX Youtube : TheAquinos 200,000+ SubscribersX
President of the Philippines
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Leverage on Kris Aquino’s network and brand awareness creation by using marketing activities along with global FMCG experienced team Brand awareness creation from two main products hero which are Snail White Whipp Soap and Snail White Facial Cream Promising growth and outstanding skincare market size amounting to THB 28,000 million 5 4 6 Product availability in 330 Stores over Philippines To be 1 of top 30 best selling skincare brand in Philippines in 2019 Expansion of targeted market to the nearest and biggest cities 3 2 1
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Top 5 Market share in Philippines
Top 5 brands in Skin Care Top 5 brands in Facial Moisturizers
11.2 % Market Share
8.5 % Market Share
7.8 % Market Share
4.2 % Market Share
3.4 % Market Share
25.7 % Market Share
23.0 % Market Share
6.0 % Market Share
3.0 % Market Share
2.1 % Market Share
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Background and business Where we are so far 2H 2018 Outlook Key financial performance Appendix
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Product Group Distribution Channels
2017 1H17 1H18
Facial Skin Care 79% Body Care 2% Facial Cleansing 6% Body Cleansing 7% Sunscreen 4% Others 2% Facial Skin Care 79% Body Care 2% Facial Cleansing 3% Body Cleansing 8% Sunscreen 2% Others 6%
2017 1H17 1H18
Modern Trade 25% Traditional Trade and Distributio n Partner 40% Export 35% Other 0% Modern Trade 37% Traditional Trade and Distributio n Partner 38% Export 24% Others 1% Facial Skin Care 77% Body Care 4% Facial Cleansing 4% Body Cleansing 8% Sunscreen 4% Others 3% Modern Trade 29% Traditional Trade and Distributio n Partner 41% Export 30% Others 0%
Revenue from sales
Unit: Million baht 561 558 311 176
100 200 300 400 500 600 700 800 900 1,0001H17 1H18 Domestic Overseas
Growth
36% 64%
98%
24% 76%
94%
Growth
872 734
Growth
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24% 22%
190 608 862 614 512 43.3% 63.6% 69.7% 70.4% 70.0% 2014 2015 2016 1H17 1H18 Gross Profit % Gross Margin 37 254 441 452 268 213 8.4% 26.6% 35.5% 26.8% 30.5% 27.8% 2014 2015 2016 2017 1H17 1H18 EBITDA % EBITDA Margin 28 194 335 351 209 175 6.3% 20.3% 27.0% 20.8% 23.8% 22.9% 2014 2015 2016 2017 1H17 1H18 Net Profit % NP Margin
EBITDA Net Profit
Unit: Million baht Unit: Million baht 32% 3-year target: 32% 72% 3-year target: 68 – 72%
Gross Profit
Unit: Million baht 68% 3-year target: 22 – 24%
CONTACT US DO DAY DREAM PLC. Investor Relations Department Tel: +662-917-3055 Ext.808 Fax: +662-917-3054 Email: ir@dodaydream.com Website: www.dodaydream.com Contact person
Email: Chanoknan.t@dodaydream.com Company satisfaction survey