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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
Background and business
Where we are so far
Key financial performance
Where we will be
Key investment highlights
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%
8 Garnier Light Complete White SPF20 Serum Sachet 50 Ml 1.0%
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
Background and business
Where we are so far
Key financial performance
Where we will be
Key investment highlights
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%
Facial Skin Care 81%
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%
Facial Skin Care 77%
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
Background and business
Where we are so far
Key financial performance
Where we will be
Key investment highlights
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%
3 Garnier Light Complete White SPF20 Serum Sachet 7 Ml 2.1%
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
Strong 2018 outlook from 3 key drivers
Expansion into
King Power Duty Free 2
• 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)
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
Vibrant opportunity
in Chinese market 3
• 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
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
Strong 2018 outlook from 3 key drivers
Penetrating through
convenience store and
traditional trade channel 1
Expansion into
King Power Duty Free 2
Vibrant opportunity
in Chinese market 3
• 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
• 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
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: ir@dodaydream.com
Website: www.dodaydream.com
Contact person
Ms. Chanoknan Thiemrat (Investor Relations)
Email: Chanoknant.@dodaydream.com
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