Roadshow Presentation 29 November 2017 Disclaimer The information - - PowerPoint PPT Presentation

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Roadshow Presentation 29 November 2017 Disclaimer The information - - PowerPoint PPT Presentation

Roadshow Presentation 29 November 2017 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 offer or invitation to purchase any


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Roadshow Presentation 29 November 2017

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CONFIDENTIAL │ PAGE 1

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

  • ther 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

  • r 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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CONFIDENTIAL │ PAGE 2

Presenters

Dr.Sarawut Pornpatanarak

(Founder, Chief Executive Officer, Vice Chairman)

  • Mr. Piyawat Ratchapolsitte

(Chief Financial Officer, Director)

Mr.Thiti Rattamany

(Chief Strategy and Insight Officer)

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CONFIDENTIAL │ PAGE 3

Table of contents

1 Background and Business 2 Key Investment Highlights 3 Key Financial Performance 4 Offering Summary

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CONFIDENTIAL │ PAGE 4

Our Journey Since 2010 Has Seen Us Become a Leading Skincare Company in Thailand

2010 - 2012 2013 2014 2015 2016 2017

Founded Do Day Dream PLC. to focus on OEM Business of skin care products with registered and paid-up capital THB 1 mm at par value of THB 100 each

  • Founded NAMU LIFE Brand and launched the first product called “SNAILWHITE SECRETION FILTRATE

MOISTURE FACIAL CREAM”

  • Main distribution channel are online (Line, Facebook and Instagram) and traditional trade
  • Launched 3 more products of NAMU LIFE SNAILWHITE and expanded into body care product
  • Started to distribute Gift set which bundled several products of the Company for special occasions
  • Expanded into modern trade and export to China, Hong Kong, Myanmar and Cambodia
  • Increased share capital from THB 1 mm to THB 10 mm for business expansion
  • Founded Namu Life Plus Co., Ltd to be the Company’s marketing arms.
  • Launched 3 more products of NAMU LIFE SNAILWHITE and expanded into sunscreen and cleansing

products

  • Invested in land with factory located in Rojana Industrial Park and started to renovate new plant
  • Started to produce small size products (Sachet) selling through leading convenience stores
  • Launched 4 more products of NAMU LIFE SNAILWHITE and expanded into body cleansing
  • Started production in the new plant located in Rojana Industrial Park in October 2016
  • Implemented SAP
  • Increased share capital from THB 10 mm to THB 225 mm for business expansion
  • Restructured shareholding of the Company to hold 100% of share in Namu Life Plus Co., Ltd
  • Launched 8 more products of NAMU LIFE SNAILWHITE
  • Investment from NHTPEC, a world-class private equity firm
  • Transformed into a Public Company and increased share capital for IPO
  • Founded Do Infinite Dream Co., Ltd to be IHQ for the Company’s international business

Key Milestone

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CONFIDENTIAL │ PAGE 5

Company Background, Vision and Business Goal

Do Day Dream PLC. is a fast growing skincare manufacturer and distributor in Bangkok, Thailand. Formed in 2010, Do Day Dream PLC. has reached THB 1.2 bn sales in 2016, within 5 years, or just 3 years after the launch of NAMU LIFE SNAILWHITE. Our customers include retail customers, local distributors and international distributors in several countries in Asia.

Company Overview

Vision Mission

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

Core Value

Robust growth while always being adaptive Fresh and uniquely innovative Commitment to continuous improvement for sustainability and stability

DYNAMIC DIFFERENT DEVELOP

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CONFIDENTIAL │ PAGE 6

Company Structure

Management Structure

Corporate Strategy Commercial Company Secretary Operation Finance, Administration & Support CEO Deputy CEO (Excellence and Sustainable Development) Internal Audit Board of Director Audit Committee Nomination and Remuneration Committee Risk Management Committee Risk Management

Parent and Subsidiary Co.

THAILAND SINGAPORE Incorporated in Do Day Dream Trading Do Singapore Dream Do Day Dream Do Infinite Dream (IHQ) Namu Life Plus 100% 100% 100% 100% Future Structure/1 Executive Commitee Distribution product of the Company International Headquarter Trading company in international market Holding company to invest

  • verseas

Note: /1 Future Structure expected to be established within 2017

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CONFIDENTIAL │ PAGE 7

Shareholding Structure

Pre IPO Post IPO

  • On July 20, 2017, North Haven Thai Private Equity Clarity Company (HK) Limited, a private equity fund managed by Morgan Stanley, subscribed

to 15,000,000 newly-issued shares of the Company at 29.87 Baht/share or equivalent to proceeds of THB 448.05 mm

  • Post-IPO, an additional 2.0 mm ESOP shares will be issued, of which 1.15 mm shares will be allocated to 5 key managements and the remaining

to employees at a price determined by the independent appraiser at 28.42 Baht/share

Note: /1 Pornpatanarak Family comprise of 179,040,700 shares of Dr.Sarawut, 22,275,000 shares each of his 2 siblings, Mr. Saranon and Ms. Saranya

/2 Management and employees includes 787,500 shares held by Mr.Rungroj Chaisirivikrom , 609,800 shares held by Ms.Punthida Meesutji and 12,000 shares held by Mr.Rittikrai Thammaraksa

Pornpatanarak Family/1 93.16% North Haven Thai Private Equity Clarity Company (HK) Limited 6.25% Management and employees/2 0.59% North Haven Thai Private Equity Clarity Company (HK) Limited 4.75% Management and employees/2 0.44% Pornpatanarak Family/1 70.76% IPO 24.05%

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CONFIDENTIAL │ PAGE 8

Extensive Product Portfolio

Facial Skin Care Body Care Facial Cleansing

  • Facial Cream
  • SYN-AKE MIST
  • Mask Shot
  • Concentrate Facial Cream
  • Miracle
  • Royal Jelly Facial Cream
  • Day Cream
  • Overnight Firming Mask
  • 7 Days Mask Sheets
  • Gold Facial Cream
  • Body Booster
  • Body Booster

SPF 30/ PA+++

  • Cleansing
  • Whipp Soap
  • Essential Toner
  • Namu Facial Jelly Wash

Body Cleansing Sunscreen Giftset

  • Sunscreen
  • Sunscreen CC
  • Crème Body Wash

Source: Company information

Number of New Products Launched /1

Note: /1 Excluding giftset

/2 Company’s Financial Statement, BOL, for the year 2016

1 2 3 4 5 6 1 4 7 11 19

Total Products Est. 2010 1996 2000 1985 & 1976 1994

65.6% 36.7% 21.3% 5.0% 0.1%

Do Day Dream Beauty Community Karmart Smooth E Oriental Princess & Cute Press CAGR (14-16) THB mm

1,202 2,540 1,430 1,205 3,745

Skincare companies in Thailand (2016) /2

1 3 3 4 8 2013 2014 2015 2016 9M2017

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CONFIDENTIAL │ PAGE 9

Table of contents

1 Background and Business 2 Key Investment Highlights 3 Key Financial Performance 4 Offering Summary

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CONFIDENTIAL │ PAGE 10

Our Investment Highlights

Strong Brand Identity Leading to Top-of-mind Brand Awareness Efficient and Reliable Production Process Extensive Distribution Network Coverage Commitment to Creativity with a Proven Track Record of Product Innovation Founded and Led by a Team of Young and Vibrant Individuals Well-positioned to Take Advantage of the Strong Market Growth in Thailand and Abroad 1 2 3 4 5 6 Key Highlights

Do Day Dream PLC.

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CONFIDENTIAL │ PAGE 11 NAMU LIFE distinctive identity makes the Company different from others. The Company has articulated its product and marketing strategy to reflect

  • ur philosophy of “Beauty is Healthy” to match with consumer trend.

“Beauty is Healthy”

Mass Premium Premium Mass

NAMU LIFE is uniquely well-positioned as a premium mass brand which allows it to capture both the mass and premium market demand. Our superstar presenters strengthen NAMU LIFE recognition and reliability.

Brand identity Brand position

Strong Brand Identity Leading to Top-of-mind Brand Awareness

1

Consumer confidence awards

Cosmo Kiss Beauty Award 2015 “Best Facial Sheet Mask” in 2015 Health, Wellness and Beauty Award 2016 (HWB Award 2016) for best facial moisturizer and body moisturizer for clear skin, and top selling brand Praew Magazine ICONIC Whitening Facial Cleanser Top 5 Cleanser from Marie Claire BEST Beauty 2016 OK! Beauty Choice 2016 Lisa Beauty Choice Award Editor’s Choice 2016 Cosmenet top review of in 2017 SME Excellence Award in Manufacturing Business from TMA in 2017 Iconic Brightening Facial Sunscreen Lisa Beauty Choice Award 2017 Cleo Beauty Hall of Fame 2017

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CONFIDENTIAL │ PAGE 12

State-of-the-art production facilities

  • Started production in October 2016
  • Location: 53 Moo 9, Rojana Road, Thanu Sub-district, U-thai District,

Ayutthaya Province 13210, Thailand

  • Current Annual Capacity: 1,903.2 Million ml
  • Land Area : 19 rai (9 rai used)
  • Number of production workers : 214 workers (136 workers are

temporary) as of 30 Sep 2017

  • Features in-house R&D to maximize efficiency in product research and

development

  • High technology and environmental friendly production process

Production capacity

As at 30 Sep, 2017 High Viscosity Low Viscosity Total Utilization Rate 41.0 % 46.7 % 44.9 % Mixing Capacity (9M17) 457.5 969.9 1,427.4 Actual Production (9M17) 187.4 452.9 640.3 Current Mixing Utilization Rate

Source: Company information Note: /1 Old plant capacity did not separate between high viscosity and low viscosity capacity

Our new plant at Rojana Industrial Park have approximately six times higher annual capacity than our old plant

610 316.8 1,293.2 2016A 2017E

Mixing Capacity increased Unit: Million ml.

High Viscosity Low Viscosity

1,903.2

/1

Old plant New plant

Efficient and Reliable Production Process

2

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CONFIDENTIAL │ PAGE 13

Source: Company information

Key raw materials

Our attention to product quality started since even before the production process. We choose best-in-class packaging and raw material to ensure customer

  • satisfaction. We source raw material from various suppliers

both domestically and internationally

Production process

Store Raw Material Mixing High Viscosity Cream Filling Packing Low Viscosity Cream

Company focuses on quality control in every stage of production. We currently have ASEAN GMP certification and is in process to obtain

  • ther internationally certified production processes including

ISO 9100, ISO 14001 and OHSAS 18001 by early 2018

Snail Secretion Filtrate From various source Packaging Innovative and High quality packaging

QC QC QC QC

and other Beneficial Natural Extract

Efficient and Reliable Production Process (Cont’d)

2

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CONFIDENTIAL │ PAGE 14 3

Extensive Distribution Network Coverage

Do Day Dream/ Namu Life

>13,000 Stores

Modern Trade

>1,300 Stores

Traditional Trade Online Channels Export to China and

  • ther countries

2 NAMU LIFE shop

Pharmacy Chain

Pan Asian Distribution China Thailand Laos Cambodia Myanmar

New growth markets Existing market stronghold

shop.namulife.com

9 Nationwide

Distribution Partners/1

  • 1. BTS Siam Square
  • 2. Show DC

Note: /1 Distributors that buy products from the Company and re-distribute in its territory across Thailand at prices and promotion assigned by the Company.

4 International Distributors

Sales by Do Day Dream / NAMU Sales by Distributor

Source: Company information

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CONFIDENTIAL │ PAGE 15

Commitment to Creativity with a Proven Track Record of Product Innovation

4

  • Strong track

record of innovation and creativity

  • Dedicated

research and development team

  • Using

breakthrough technology to enhance product performance and features as a key competitive advantage

NAMU LIFE SNAILWHITE Maskshot Natural fiber mask weaving in water

20 innovative products covering wide range

  • f effective skin whitening usage

Facial Cream Package Hygienic package with vacuum pump NAMU LIFE SNAILWHITE Crème Body Wash Body wash in lotion like form with unique ingredients NAMU LIFE SNAILWHITE Whipp Soap Facial wash soap packed in mesh package

Example of some innovative products Proven track record of product innovation

Source: Company information

BODYWASH CLEANSING MIST MASK CREAM SUNSCREEN BODYBOOSTER

Anti-Counterfeit Sticker QR code sticker to check for genuine product Facial Cleansing Package Water Proof Bottle Cap

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CONFIDENTIAL │ PAGE 16

Founded and Led by a Team of Dynamic and Vibrant Individuals

Do Day Dream’s directors and executives comprise experienced professionals and new generation executives with knowledge, passion and

  • creativity. These make the Company adaptable and able to identify and capture business opportunities under rapidly changing environment

Independent Directors

Current and Past Experience

  • Member of National Legislative Assembly of Thailand
  • Former Permanent Secretary of Justice Ministry
  • Former Director-General of DSI (Department of Special Investigation)

Police General Chatchawal Suksomjit

(Chairman of Board of Director, Independent Director) Current and Past Experiences

  • Former chairman of Audit Committee of Thoresen Thai Agencies PCL.
  • Former Assistant Governor of Bank of Thailand

Mr.Krish Follet

(Independent Director, Chairman of Audit Committee) Current and Past Experiences

  • Senior Executive Vice President, Krung Thai Bank PCL.
  • Executive Vice President, World Business Division, Kasikorn Bank PCL.

Executive Vice President, International Business, Kasikorn Bank PCL.

Mr.Songpol Chevapanyaroj

(Independent Director, Audit Committee) Current and Past Experiences

  • President and Director of Muang Thai Insurance PCL.

Mrs.Nuanphan Lamsam

(Independent Director) Current and Past Experiences

  • Vice President, Natural Gas Products Distribution, PTT PCL.

Mr.Nattawoot Krerpradab

(Independent Director, Audit Committee)

5

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CONFIDENTIAL │ PAGE 17

Founded and Led by a Team of Dynamic and Vibrant Individuals (Cont’d)

5 Do Day Dream’s directors and executives comprise experienced professionals and new generation executives with knowledge, passion and

  • creativity. These make the Company adaptable and able to identify and capture business opportunities under rapidly changing environment

Directors and Executives

Experience

  • Project Manager, Prospect (Thailand) Co., Ltd
  • Project Manager, Advanced Research Group

Co., Ltd

  • International Roaming Analyst, Advanced Info

Services Plc

Mr.Suphawat Vanichprapha

(Deputy Chief Executive Officer, Director) Experience

  • Fashion Merchandiser Marketing & Buyer

Department, Central Marketing Group Co.,Ltd

  • Assistant Store Manager of American Appeal

Ms.Saowakon Yamcharoen

(Deputy Chief Executive Officer, Director) Experience

  • Vice President of Customer & Market Insight, The

Siam Commercial Bank Pcl

  • Customer Engagement Director, Hypertrade

Consulting Co., Ltd

  • Head of Insight, Ek-Chai Distribution System Co.,

Ltd

Mr.Thiti Rattamany

(Chief Strategy and Insight Officer) Experience

  • Executive Vice President of Media and

Advertising Planning,Vizeum (Thailand) Co., Ltd

  • Media and Advertising Planning Manager, Carat

(Thailand) Co., Ltd

Mr.Rittikrai Thammaraksa

(Deputy Chief Executive Officer, Director) Experience

  • General Sales Manager, Siam Regal Co., Ltd
  • National Sales Manager (Traditional Trade

Channel), Mondelez (Thailand) Co., Ltd

  • Head of Sales (Traditional Trade Channel),

Reckitt Benckiser (Thailand) Co., Ltd

Mr.Rungroj Chaisirivikrom

(Director)

Experience

  • Director of Colour Trend Co., Ltd
  • Director of OverDrive (Thailand) Co., Ltd
  • Director and President of PM Chemical Co., Ltd

Dr.Sarawut Pornpatanarak

(Founder, Chief Executive Officer, Chief Operating Officer (acting), Vice Chairman) Experience

  • Graphic Supervisor, BEC-Tero radio Co., Ltd
  • Graphic Designer, SKY-HIGH network Co., Ltd

Mr.Nitiroj Manolamai

(Deputy Chief Executive Officer, Director) Experience

  • Deputy Managing Director, Private Equity,

Richardson Doyle & Partners

  • ASEAN Business Group Manager, Kasikornbank

Pcl

  • Assistant Manager, Investment Banking, MayBank

KIM ENG Securities (Thailand) Plc

Mr.Piyawat Ratchapolsitte

(Chief Financial Officer, Director)

Ms.Kornthong Chakornsirisakul

(Chief Commercial Officer) Experience

  • Chief Commercial Officer, Damco Logistics

(Thailand) Co., Ltd

  • Cluster Operations Manager, Maersk Lind

(Thailand) Co., Ltd

  • Safmarine Country Manager, Bangkok Marine

Co., Ltd

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CONFIDENTIAL │ PAGE 18

Well-positioned to Take Advantage of the Strong Market Growth in Thailand and Abroad

6

Expansion Roadmap Strong Market Growth Outlook

Strong economic growth lading to consumers health-awareness trend and premiumization Developed online channel improve accessibility to cosmetic product Ranked among the top 10 fast- growing business

  • f 20161

Demographic changing towards aging population reassure demands for personal care products2

Business Expansion Do Day Dream PLC. International China Others Domestic Current Products New Brand New Product

  • Launch and

market more re-sized versions of current products into the existing sales channels

  • Increase more

store sales network across Thailand

  • Improve online

retail to maximize

  • utreach to

Thai customers

  • Launch and

market innovative products or to focus on untapped segment (eg. anti-aging, for men)

  • new brand to

target new segment (eg. Mass or premium brand)

  • Focus on

expanding distributorship in China

  • Setting up
  • nline stores
  • n more

platform

  • Expanding
  • ffline

distribution channels

  • Explore
  • pportunities in
  • ther countries
  • Look for the

right local partner who can contributes to production, distribution, and overall

  • perations

Source: /1 Center for Economic and Business Forecasting, University of Thai Chamber of Commerce

/2 United Nations

Increasing number of tourist

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CONFIDENTIAL │ PAGE 19

Table of contents

1 Background and Business 2 Key Investment Highlights 3 Key Financial Performance 4 Offering Summary

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CONFIDENTIAL │ PAGE 20

Key Financial Metrics

Note: /1 Calculated based on sales before discount amounting to THB 438 mm, THB 1,293 mm, THB 1,283 mm in 2014, 2016 and 9M2017, respectively

/2 Others product group comprises of giftset, selling of packaging to related company, food supplement and OEM business /3 Distribution partner mainly distribute to traditional trade /4 Others comprise of sale from welfare of employee and retail customer who purchased lower than THB 100,000 /year

Source: Company information

Sales (THB mm)

The Company has diversified away from Facial skin care products as they continuously introduced new and innovative products. The Company also shown balanced sales by distribution channels among modern trade, traditional trade and export. In addition, consignment sales has significantly decreased with

  • nly sales through Watson, EVEANDBOY, Central and Robinson remain as consignment sales

Product Group/1 Distribution Channels/1

2014 2016 9M2017

Traditional Trade Modern Trade Distribution Partner/3 Export Others/4 Body Care Facial Skin Care Facial Cleansing Body Cleansing Sunscreen Others/2

438 955 1,202 985 1,256 200 400 600 800 1000 1200 1400 2014 2015 2016 9M2016 9M2017

0.9% 19.1% 29.7% 27.3% 23.1% 11.3% 30.0% 11.8% 46.6% 0.3% 35.7% 28.4% 3.9% 31.3% 0.6% 92.5% 3.2% 4.3% 83.1% 2.8% 4.3% 3.8% 4.6% 0.8% 77.7% 3.2% 3.1% 4.7% 3.9% 7.4%

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CONFIDENTIAL │ PAGE 21

223 318 344 264 342 10 6 1

  • 1

10 18 16 25 37

1 3 9 5 11

4 4 5 3 6 56.7% 36.4% 31.2% 30.2% 31.6%

  • 250.0%
  • 200.0%
  • 150.0%
  • 100.0%
  • 50.0%

0.0% 50.0%

  • 50

100 150 200 250 300 350 400 450 500

2014 2015 2016 9M2016 9M2017 Raw material and Packaging Freight Labor Depreciation Others % of sales

Cost of Good Sold

Source: Company information

(THB mm)

COGS to sales significantly decreased from 2014 thanks to economies of scale and better bargaining power with the suppliers which result in lower average cost of raw material and packaging

Note: /1 Others comprise mainly of utility expenses

 Significant portion of COGS

attributable to raw materials and packaging

 2014 - 2016 total COGS increased by

approximately 22.9% CAGR in the last three years in accordance with sales

 2014 - 2016 COGS as a % of sales

continuous drop due to ability to negotiate with key suppliers resulting in lower average cost together with economies of scale and more efficient production.

 9M17 y-o-y COGS increased 33.6%

primarily as sales revenue increased

 However, 9M17 COGS as a % of sales

slightly increase due to expanding sales of body wash product, a product in a highly competitive segment

/1

248 347 375 298 398

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CONFIDENTIAL │ PAGE 22

Selling & Administrative Expenses

Note: /1 Others comprise mainly of depreciation and amortization expenses, rental, miscellaneous expenses , tax and other services and other selling and administrative expenses Source: Company information

(THB mm)

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

 2014 - 2016 total selling and

administrative expenses increased by 62.0% CAGR due to heavy spending

  • n advertising to promote products as

well as additional management and employee expenses to support business expansion

 Advertising and promotional expenses

slightly dropped in 2016 due to lower advertising activity in 4Q2016

 9M17 y-o-y advertising and

promotional expense increased 57.3% as Company spent heavily to promote new product launched during nine months of the year

/1

136 284 275 246 387 3 25 71 49 88 9 30 7 5 12 7 22 53 35 59 35.3% 37.8% 33.8% 34.0% 43.4%

  • 200.0%
  • 150.0%
  • 100.0%
  • 50.0%

0.0% 100 200 300 400 500 600 2014 2015 2016 9M2016 9M2017 Advertising and promotional Employee costs Freight Others % of sales

155 361 406 335 545

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CONFIDENTIAL │ PAGE 23

Profitability

Source: Company information

The Company has shown strong profitability growth over the past few years driven by strong brand awareness and innovative product launches. In 9M2017, gross margin remained relatively constant, while EBITDA margin and net margin softened from the increased promotion selling expenses for our new products launched over the year 2017

Gross profit (THB mm) and margin (%) Net profit (THB mm) and margin (%) EBITDA (THB mm) and margin (%)

28 194 335 279 254 6.3% 20.3% 27.8% 28.3% 20.1%

0.0% 10.0% 20.0% 30.0% 100 200 300 400

2014 2015 2016 9M2016 9M2017 Net Profit Net Profit Margin 37 254 441 367 340 8.4% 26.6% 36.6% 37.2% 26.9%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 50 100 150 200 250 300 350 400 450 500

2014 2015 2016 9M2016 9M2017 EBITDA EBITDA Margin 190 608 827 687 859 43.3% 63.6% 68.8% 69.8% 68.4% 0.0% 20.0% 40.0% 60.0% 80.0% 200 400 600 800 1000 2014 2015 2016 9M2016 9M2017 Gross Profit Gross Margin

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CONFIDENTIAL │ PAGE 24

Financial Position

Balance Sheet

(THB mm)

Source: Company information

2014 2015 2016 9M2017 Days Sales Outstanding (days) 23 46 54 63 Days Inventories on Hand (FG) (days) 23 29 40 39 Days Payable Outstanding (days) 40 56 80 88 Return on Assets (%) 19.9% 49.8% 51.4% 30.5% Return on Equity (%) 92.8% 133.5% 108.6% 55.5% Debt to Equity Ratio (times) 4.2x 1.2x 1.1x 0.7x Interest Bearing Debt to Equity Ratio (times) 1.8x 0.5x 0.4x 0.4x

Key Financial Ratio

251 529 776 1,441 203 286 401 599 48 243 375 842

  • 400

800 1,200 1,600 2014 2015 2016 9M2017 Total Assets Total Liabilities Shareholders' Equity

Total assets increased mainly from the renovation of new factory and increase in inventories from raw material and packaging purchased at the end of 2016 Total assets increased mainly due to increase in account receivable and cash and cash equivalent Total liabilities increased mainly due to short-term loan from financial institution for working capital and account payable Total assets increased mainly due to increase in account receivable from sales activity and increase in PPE from purchase of new factory Total liabilities increased mainly due to loan to finance new factory

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CONFIDENTIAL │ PAGE 25

Key Financial Strategies

Source: Company information

Capital Structure Risk Management Dividend Policy

  • Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital

structure

  • Current D/E and IBD/E is at 0.7x and 0.4x, respectively. However, the IPO proceed

would increase our equity base and thus expand debt room for future growth

  • pportunities
  • The Company has dividend payout policy of at least 50% of the net profit under

standalone financial statements

  • Our subsidiary has dividend payout policy of at least 50% of the net profit under

standalone financial statements

  • In 2016 and 9M2017, 46.2% and 38.4% of the Company’s total raw material purchased

are made in USD

  • The Company hedge foreign exchange rate risk by entered into forward contract for

hedging approximately 70% of USD purchased value

  • Our insurance made cover damage incur approximately THB 1,049 mm which cover
  • ur total fixed asset value
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CONFIDENTIAL │ PAGE 26

Table of contents

1 Background and Business 2 Key Investment Highlights 3 Key Financial Performance 4 Offering Summary

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CONFIDENTIAL │ PAGE 27

Offering Summary

Do Day Dream Public Company Limited SET / Consumer Products / Personal Products & Pharmaceuticals Issuer Market / Industry / Sector 1) Business Expansion,

  • Expansion of factory and warehouse
  • Expansion of distribution channel and distribution center
  • Renovation of office and related network
  • Improvement of research and development facilities

2) Working Capital Use of Proceeds Up to 76,000,000 newly issued shares (24.05% Post-IPO)

Offering Size Financial Advisor and Lead Underwriter

DDD Ticker