Introduction to Do Day Dream - listed companyddd.listedcompany.com/misc/presentation/20190604-ddd-oppday-1q… · 5 Inbound Tourist Outlook Source: Ministry of Tourism and Sports

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

0

50

100

150

200

250

300

350

400

450

500

Q1'2018 Q1'2019

Domestic Overseas

374

202

-46%

-43%

-58%

20%

80%

16%

84%

Products Group Distribution Channels

Facial Skin Care76%

Body Care4%

Facial Cleansing

4%

Body Cleansing

5%

Sunscreen4%

Others8%

Facial Skin Care81%

Body Care0%

Facial Cleansing

3%

Body Cleansing

6%Sunscreen

2%Others

8%

Modern Trade43%

Traditional Trade and Distribution Partner

41%

Export15%

Others0%

Modern Trade37%

Traditional Trade and Distribution Partner

43%

Export20%

Others0%

Q1 2018

Q1 2019

Q1 2018

Q1 2019

3


Revenue from sales (QoQ)

Unit: THB Million

217171

49

31

0

50

100

150

200

250

300

350

400

450

500

Q4'2018 Q1'2019

Domestic Overseas

266

202

Unit: THB Million

299

171

75

31

0

50

100

150

200

250

300

350

400

450

500

Q1'2018 Q1'2019

Domestic Overseas

374

202

-46%

-43%

-58%

-24%

-21%

-37%

20%

80%

16%

84%

20%

80%

16%

84%


4


Revenue from sales (QoQ)

Unit: THB Million Unit: THB Million

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Modern Trade Traditional Trade Inbound Tourists Export

Q1 2018 Q1 2019


-34%

-60%

-57%

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

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

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q1'2018 Q4'2018 Q1'2019

Other Countries China

10.179.74

Unit: Million

Revenue from Inbound Tourist

395,916 372,033 401,269

175,724

116,097

172,530

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

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 0.760.87 0.89

0.76 0.81 0.79 0.82

0.971.2

1 0.990.87 0.9 0.94 0.87

0.64 0.65 0.680.84

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

10154

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

12097

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

730

87

135159

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

2.300.57 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

10Source: 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. 9in Thailand

Market Share

2017 : 5.0%

2018 : 4.1%

Q1 2019 : 2.4%

Supermarket/Hypermarket

No. 10in Supermarket/

Hypermarket

No. 7in 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. 14in Open Trade

11Note : Information as of May 2019

21 Products43 SKUs

6 Products12 SKUs

1 Products1 SKU

1 Products1 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

2023To be top 3 market leader in Thai facial skin care

2038To be top 3 market leader in Asian facial skin care

2030To be top 3 market leader in ASEAN facial skin care

Mission Statement

17

1.Modern TradeMarket size: THB 34,468 mm

2.Traditional TradeMarket size: THB 30,560 mm

3.Inbound TouristMarket size: THB 9,728 mm

4.Export

Channels Growing the market share

18

Growing the market share


1.Modern TradePOS: 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



2.Traditional TradePOS: 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





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





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

Expand penetration

and build relationship

with wholesalers,

retailer in upcountry

Channels

22





Direct communication to target customers

Communication for TT Channel

SNAILWHITE roadshow in

Northeastern part of Thailand

Channels

23



3.Inbound TouristKing Power DFS: 8 / 9


CHANNEL COVERAGEIncrease 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



4.Export

CHINADistribution model

• Available only in Online

Channel (VIP, TAOBAO,JD)

• 4 Products with CFDA

• Created brand awareness

via online campaign with

beauty influencers

HONGKOKGDistribution model

• Available in Watsons,

SASA and Mannings Store

• Created brand awareness

via online channel and out

of home media s

PHILIPPINESPartnership Model

• Available in Watsons 330 stores

• Launch campaign “Unlock

Beauty” with Beauty influencers

to created brand awareness

Channels

25



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

26

Growth Drivers 2019

PhilippinesCreate Brand Awareness and

Expand Distribution Channel

New Product/Brand LaunchTotal New 8 Products, 13 SKUs

Traditional Trade ChannelExpand Distribution Coverage from 2% to 5%

Increase point of sales in top tourist provinces

27

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


Unit: THB mm

A B C D 1 2 3


• 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

28

Do Day Dream is still young. We have a big dream.

We never stop growing to be the market leader.

Road to 2023Mission: 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

29

TABLE OF CONTENTS

Appendix

30

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

other assets such as higher inventories or

loan payments to financial institutions

mainly contributed to the decline in total

assets.

• Liabilities

Total liabilities fell as short-term loans from

financial institutions and trade payables and

other payables dropped.

• Equity

The increase in shareholders’ equity was

mainly caused by the Company’s retained

earnings from the Company’s performance.

31

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

32

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 1399

7 16

60

6267

133

180170

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

of 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

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

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

overseas 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

overseas 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

66.65.3

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-agingUV/Whitening

Basic Care

Oil Control

116

52

84

37

Philippines

Philippines Market Outlook

5.98

10.9

7.2

9.5

126.6

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 CAGRConsumer Trend

• Consumer’s desire to improve

their looks was reflected in their

ongoing 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: [email protected]

Website: www.dodaydream.com

Contact person

Ms. Chanoknan Thiemrat (Investor Relations)

Email: [email protected]

Documents

Introduction to Do Day Dream - listed companyddd.listedcompany.com/misc/presentation/20190604-ddd-oppday-1q… · 5 Inbound Tourist Outlook Source: Ministry of Tourism and Sports