Embed Size (px)
Citation preview
Opp Day Q3 2018
Information as of 3Q18
Latest update on 26th Nov 2018
2
3
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
4
Since 2013 Since 2018
Leading local skin care company in
Thai market owner of
Namulife SNAILWHITE and OxersquoCure
5
2016
bull Launched 4 more
products of NAMU
LIFE SNAILWHITE
and expanded into
body cleansing
bull Started production in
the new plant located
in Rojana Industrial
Park in October 2016
bull Implemented SAP
bull Increased share
capital to THB 225 mn
focusing on
international
expansion
2017
bull Launched 8 more
products of NAMU
LIFE SNAILWHITE in
facial skin care and
body care
bull Started to produce
small size products
(Sachet) selling
through leading
convenience stores
bull Listed on the Stock
Exchange of Thailand
bull Founded Do Infinite
Dream Co Ltd to be
IHQ for the Companyrsquos
international business
2014
bull Launched 3 more products
of NAMU LIFE SNAILWHITE
and expanded into body
care product
bull Expanded into modern
trade and export to China
Hong Kong Myanmar and
Cambodia
bull Increased share capital from
THB 1 mn to THB 10 mn for
business expansion
CHINA
HONG KONG
2012-2010
bull Founded Do Day Dream PLC
to focus on OEM Business
of skin care products with
registered and paid-up
capital THB 1 mn at par value
of THB 100 each
Our Journey Since 2010 has seen us become a leading skin care company in Thailand
2015
bull Founded Namu Life
Plus Co Ltd to be
the Companyrsquos local
distribution arm
bull Launched 3 more
products of NAMU
LIFE SNAILWHITE
and expanded into
sunscreen and
cleansing products
bull Invested in land with
factory located in
Rojana Industrial
Park and started to
renovate new plant
bull Snail Filtrate rejuvenates the skin
bull Tailored the product to suit the
climate and skin of SEA countries
bull Created the new segment for the
market the Premium-Mass
2013
bull Founded NAMU LIFE Brand
and launched the first product
ldquoSNAILWHITE SECRETION
FILTRATE MOISTURE
FACIAL CREAMrdquo
bull Main distribution channels are
online (Line Facebook and
Instagram) and traditional trade
6
Company structure and shareholding structure
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
overseas businesses
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
overseas business
POTENTIAL PARTNERS
51
7
Extensive Product Portfolio Covering Five Categories of Skincare
6 Products12 SKUs
As of 30 Sep 2018
20 Products41 SKUs
As of 30 Sep 2018
30 ml 690 THB 7 ml 39 THB
New Product
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
2
3
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
4
Since 2013 Since 2018
Leading local skin care company in
Thai market owner of
Namulife SNAILWHITE and OxersquoCure
5
2016
bull Launched 4 more
products of NAMU
LIFE SNAILWHITE
and expanded into
body cleansing
bull Started production in
the new plant located
in Rojana Industrial
Park in October 2016
bull Implemented SAP
bull Increased share
capital to THB 225 mn
focusing on
international
expansion
2017
bull Launched 8 more
products of NAMU
LIFE SNAILWHITE in
facial skin care and
body care
bull Started to produce
small size products
(Sachet) selling
through leading
convenience stores
bull Listed on the Stock
Exchange of Thailand
bull Founded Do Infinite
Dream Co Ltd to be
IHQ for the Companyrsquos
international business
2014
bull Launched 3 more products
of NAMU LIFE SNAILWHITE
and expanded into body
care product
bull Expanded into modern
trade and export to China
Hong Kong Myanmar and
Cambodia
bull Increased share capital from
THB 1 mn to THB 10 mn for
business expansion
CHINA
HONG KONG
2012-2010
bull Founded Do Day Dream PLC
to focus on OEM Business
of skin care products with
registered and paid-up
capital THB 1 mn at par value
of THB 100 each
Our Journey Since 2010 has seen us become a leading skin care company in Thailand
2015
bull Founded Namu Life
Plus Co Ltd to be
the Companyrsquos local
distribution arm
bull Launched 3 more
products of NAMU
LIFE SNAILWHITE
and expanded into
sunscreen and
cleansing products
bull Invested in land with
factory located in
Rojana Industrial
Park and started to
renovate new plant
bull Snail Filtrate rejuvenates the skin
bull Tailored the product to suit the
climate and skin of SEA countries
bull Created the new segment for the
market the Premium-Mass
2013
bull Founded NAMU LIFE Brand
and launched the first product
ldquoSNAILWHITE SECRETION
FILTRATE MOISTURE
FACIAL CREAMrdquo
bull Main distribution channels are
online (Line Facebook and
Instagram) and traditional trade
6
Company structure and shareholding structure
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
overseas businesses
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
overseas business
POTENTIAL PARTNERS
51
7
Extensive Product Portfolio Covering Five Categories of Skincare
6 Products12 SKUs
As of 30 Sep 2018
20 Products41 SKUs
As of 30 Sep 2018
30 ml 690 THB 7 ml 39 THB
New Product
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
3
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
4
Since 2013 Since 2018
Leading local skin care company in
Thai market owner of
Namulife SNAILWHITE and OxersquoCure
5
2016
bull Launched 4 more
products of NAMU
LIFE SNAILWHITE
and expanded into
body cleansing
bull Started production in
the new plant located
in Rojana Industrial
Park in October 2016
bull Implemented SAP
bull Increased share
capital to THB 225 mn
focusing on
international
expansion
2017
bull Launched 8 more
products of NAMU
LIFE SNAILWHITE in
facial skin care and
body care
bull Started to produce
small size products
(Sachet) selling
through leading
convenience stores
bull Listed on the Stock
Exchange of Thailand
bull Founded Do Infinite
Dream Co Ltd to be
IHQ for the Companyrsquos
international business
2014
bull Launched 3 more products
of NAMU LIFE SNAILWHITE
and expanded into body
care product
bull Expanded into modern
trade and export to China
Hong Kong Myanmar and
Cambodia
bull Increased share capital from
THB 1 mn to THB 10 mn for
business expansion
CHINA
HONG KONG
2012-2010
bull Founded Do Day Dream PLC
to focus on OEM Business
of skin care products with
registered and paid-up
capital THB 1 mn at par value
of THB 100 each
Our Journey Since 2010 has seen us become a leading skin care company in Thailand
2015
bull Founded Namu Life
Plus Co Ltd to be
the Companyrsquos local
distribution arm
bull Launched 3 more
products of NAMU
LIFE SNAILWHITE
and expanded into
sunscreen and
cleansing products
bull Invested in land with
factory located in
Rojana Industrial
Park and started to
renovate new plant
bull Snail Filtrate rejuvenates the skin
bull Tailored the product to suit the
climate and skin of SEA countries
bull Created the new segment for the
market the Premium-Mass
2013
bull Founded NAMU LIFE Brand
and launched the first product
ldquoSNAILWHITE SECRETION
FILTRATE MOISTURE
FACIAL CREAMrdquo
bull Main distribution channels are
online (Line Facebook and
Instagram) and traditional trade
6
Company structure and shareholding structure
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
overseas businesses
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
overseas business
POTENTIAL PARTNERS
51
7
Extensive Product Portfolio Covering Five Categories of Skincare
6 Products12 SKUs
As of 30 Sep 2018
20 Products41 SKUs
As of 30 Sep 2018
30 ml 690 THB 7 ml 39 THB
New Product
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
4
Since 2013 Since 2018
Leading local skin care company in
Thai market owner of
Namulife SNAILWHITE and OxersquoCure
5
2016
bull Launched 4 more
products of NAMU
LIFE SNAILWHITE
and expanded into
body cleansing
bull Started production in
the new plant located
in Rojana Industrial
Park in October 2016
bull Implemented SAP
bull Increased share
capital to THB 225 mn
focusing on
international
expansion
2017
bull Launched 8 more
products of NAMU
LIFE SNAILWHITE in
facial skin care and
body care
bull Started to produce
small size products
(Sachet) selling
through leading
convenience stores
bull Listed on the Stock
Exchange of Thailand
bull Founded Do Infinite
Dream Co Ltd to be
IHQ for the Companyrsquos
international business
2014
bull Launched 3 more products
of NAMU LIFE SNAILWHITE
and expanded into body
care product
bull Expanded into modern
trade and export to China
Hong Kong Myanmar and
Cambodia
bull Increased share capital from
THB 1 mn to THB 10 mn for
business expansion
CHINA
HONG KONG
2012-2010
bull Founded Do Day Dream PLC
to focus on OEM Business
of skin care products with
registered and paid-up
capital THB 1 mn at par value
of THB 100 each
Our Journey Since 2010 has seen us become a leading skin care company in Thailand
2015
bull Founded Namu Life
Plus Co Ltd to be
the Companyrsquos local
distribution arm
bull Launched 3 more
products of NAMU
LIFE SNAILWHITE
and expanded into
sunscreen and
cleansing products
bull Invested in land with
factory located in
Rojana Industrial
Park and started to
renovate new plant
bull Snail Filtrate rejuvenates the skin
bull Tailored the product to suit the
climate and skin of SEA countries
bull Created the new segment for the
market the Premium-Mass
2013
bull Founded NAMU LIFE Brand
and launched the first product
ldquoSNAILWHITE SECRETION
FILTRATE MOISTURE
FACIAL CREAMrdquo
bull Main distribution channels are
online (Line Facebook and
Instagram) and traditional trade
6
Company structure and shareholding structure
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
overseas businesses
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
overseas business
POTENTIAL PARTNERS
51
7
Extensive Product Portfolio Covering Five Categories of Skincare
6 Products12 SKUs
As of 30 Sep 2018
20 Products41 SKUs
As of 30 Sep 2018
30 ml 690 THB 7 ml 39 THB
New Product
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
5
2016
bull Launched 4 more
products of NAMU
LIFE SNAILWHITE
and expanded into
body cleansing
bull Started production in
the new plant located
in Rojana Industrial
Park in October 2016
bull Implemented SAP
bull Increased share
capital to THB 225 mn
focusing on
international
expansion
2017
bull Launched 8 more
products of NAMU
LIFE SNAILWHITE in
facial skin care and
body care
bull Started to produce
small size products
(Sachet) selling
through leading
convenience stores
bull Listed on the Stock
Exchange of Thailand
bull Founded Do Infinite
Dream Co Ltd to be
IHQ for the Companyrsquos
international business
2014
bull Launched 3 more products
of NAMU LIFE SNAILWHITE
and expanded into body
care product
bull Expanded into modern
trade and export to China
Hong Kong Myanmar and
Cambodia
bull Increased share capital from
THB 1 mn to THB 10 mn for
business expansion
CHINA
HONG KONG
2012-2010
bull Founded Do Day Dream PLC
to focus on OEM Business
of skin care products with
registered and paid-up
capital THB 1 mn at par value
of THB 100 each
Our Journey Since 2010 has seen us become a leading skin care company in Thailand
2015
bull Founded Namu Life
Plus Co Ltd to be
the Companyrsquos local
distribution arm
bull Launched 3 more
products of NAMU
LIFE SNAILWHITE
and expanded into
sunscreen and
cleansing products
bull Invested in land with
factory located in
Rojana Industrial
Park and started to
renovate new plant
bull Snail Filtrate rejuvenates the skin
bull Tailored the product to suit the
climate and skin of SEA countries
bull Created the new segment for the
market the Premium-Mass
2013
bull Founded NAMU LIFE Brand
and launched the first product
ldquoSNAILWHITE SECRETION
FILTRATE MOISTURE
FACIAL CREAMrdquo
bull Main distribution channels are
online (Line Facebook and
Instagram) and traditional trade
6
Company structure and shareholding structure
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
overseas businesses
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
overseas business
POTENTIAL PARTNERS
51
7
Extensive Product Portfolio Covering Five Categories of Skincare
6 Products12 SKUs
As of 30 Sep 2018
20 Products41 SKUs
As of 30 Sep 2018
30 ml 690 THB 7 ml 39 THB
New Product
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
6
Company structure and shareholding structure
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
overseas businesses
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
overseas business
POTENTIAL PARTNERS
51
7
Extensive Product Portfolio Covering Five Categories of Skincare
6 Products12 SKUs
As of 30 Sep 2018
20 Products41 SKUs
As of 30 Sep 2018
30 ml 690 THB 7 ml 39 THB
New Product
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
7
Extensive Product Portfolio Covering Five Categories of Skincare
6 Products12 SKUs
As of 30 Sep 2018
20 Products41 SKUs
As of 30 Sep 2018
30 ml 690 THB 7 ml 39 THB
New Product
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
8
291Growth
Thailandrsquos facial mask market size in 2017
2015 2016 2017
TissuedPad Rinse Off Leave On Peel Off
905
1260
1984Unit Million baht
Source Euro Monitor The Nielsen Company
SNAILWHITE ICY MASK(Leave on facial mask)
Market size THB 405 mmCAGR 1096
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
9
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
10
Revenue from sales in 9M18
Product Group
Distribution Channels
2017 9M17 9M18
Facial Skin Care78
Body Care
3
Facial Cleansing
5
Body Cleansing
7
Sunscreen4
Others3
Facial Skin Care74
Body Care
3
Facial Cleansing
7
Body Cleansing
8
Sunscreen2
Others6
2017 9M17 9M18
Modern Trade28
Traditional Trade and Distribution Partner
35
Export36
Other1
Modern Trade38
Traditional Trade and Distribution Partner
39
Export22
Others1
Facial Skin Care77
Body Care
4
Facial Cleansing
4
Body Cleansing
8
Sunscreen4 Others
3
Modern Trade29
Traditional Trade and Distribution Partner
41
Export30
Others0
Revenue from sales
Unit Million baht
798 765
458
218
-
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524Growth
36
64
98
22
78
75
-217Growth
1256
983
-41Growth
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
11
Modern Trade Local Traditional Trade Inbound Tourists - Focused Export
50
Growth
-696
Growth
370
Growth
-524
Growth
Key challenges and solutions for DDDChannel challenges
Revenue by distribution channels
Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
12
Quarterly revenue 2016-2018
243215
262299
238
363
299258
208
40
30
93
218
146
56
75
101
42
282
254
359
519
386
421
386 379
261
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Unit Million baht
Lowest point of
total revenue
King Rama IX
mourning period
Closing down of the
biggest wholesale
skin care markets in
Thailand since May
2018
Lower number
of tourist due
to the limited of
zero-dollar tour
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
13
28
32 3-year target28 ndash 32
Cost of goods sold in 9M18
248
349
375
535
398
319
567
364
303
319 316 325
2014 2015 2016 2017 9M17 9M18
Raw material and Packaging Freight Labor Depreciation Others of Sales
COGS
bull 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
bull Significant portion of COGS attributable to raw
materials and packaging
bull 9M 2018 COGS as a of sales slightly increases
from 2017 due to product mix that the majority
contribution came from facial skin care
products are decreases in proportion
Unit Million baht
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
14
Selling amp administrative expenses in 9M18
383-year target35 ndash 3835
Selling amp administrative expenses
155
361
442
725
545
499
353
378
357
432 432
486
2014 2015 2016 2017 9M17 9M18
Advertising and Promotional Employee costs Freight Others
Unit Million baht
bull Selling amp Administrative Expense has shown
significant increase correlated with increase in
sales activity The increase was mainly attributable
by advertising and promotional expenses and
employee cost
bull Selling and administrative expenses mainly
comprise advertising and promotional expenses
and employee expenses
bull 9M 2018 y-o-y SGampA decreased by 844 The
decrease in SGampA 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
bull The launch of Snail White Facial Gold in 1Q18 and
Snail White Body Wash new formula in 2Q18
together with the drop in sales due to external
factor cause an exceed in SGampA target
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
15
24
22
Profitability in 9M18
190
608
862 859
664
433
636
697 684 675
2014 2015 2016 9M17 9M18
Gross Profit Gross Margin
37
254
441 452
340
23384
266
355
268 269
226
2014 2015 2016 2017 9M17 9M18
EBITDA EBITDA Margin
28
194
335 351
253
17563
203
270
208 201
171
2014 2015 2016 2017 9M17 9M18
Net Profit NP Margin
EBITDA Net Profit
Unit Million baht Unit Million baht
32
3-year target
32
72
3-year target68 ndash 72
Gross Profit
Unit Million baht
68
3-year target22 ndash 24
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
16
Financial position
529 776
5460 5287
286 401
674
314 243 375
4786 4973
2015 2016 2017 9M18
Total Assets Total Liabilities ShareholdersEquity
Balance Sheet
Unit Million baht
Key Financial Ratio 2015 2016 2017 9M18
Days Sales Outstanding (days) 46 53 64 100
Days Inventories on Hand (FG) (days)
29 40 48 120
Days Payable Outstanding (days) 56 80 76 84
Return on Assets () 498 514 113 442
Return on Equity () 1335 1086 136 470
Debt to Equity Ratio (times) 12x 11x 01x 006X
Interest Bearing Debt to Equity Ratio (times)
05x 05x 01x 002x
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
D
D
FG decreased QoQ but PM increased due to new
product launch in Q4
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
17
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
18
Market Size of Facial Moisturizer
2017 THB 42 billion
Growth 8
Market Share
Q3rsquo17 4
Q3rsquo18 4
No 7in Thailand
Source EuroMonitor The Nielsen Company
No 7in Supermarket
Hypermarket
Market Share
Q3rsquo17 5
Q3rsquo18 4
SupermarketHypermarket
No 6in Convenience
Stores
Market Share
Q3rsquo17 4
Q3rsquo18 7
Convenience Stores
We are a top-of-mind brand in Thailand
New Snailwhite Sachets play
vital role in capturing Market Share
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
19
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
20
2023To be top 3 market leader in Thai facial skin care
2038To be a market leader in Asian facial skin care
2030To be a market leader in ASEAN facial skin care
Mission Statement
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
21
88320
52160
19520
7360 7040 6720 5760 48003200
Asian skin care market size in 2017Unit THB BN
No4
Asian skin care market
Does it matter to be
top 3 in Thai market
Source Euromonitor report
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
22
6654
7636
8890
10355
12069
2015 2017 2019 (F) 2021 (F) 2023 (F)
Thailandrsquos skin care market size
CAGR
80
Source Euromonitor report
Unit THB BN
Does it matter to be
top 3 in Thai market
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
23
27
7
15
2
11
6
10
0
52
43
21
32
14
15
25
9
14
1
12
9
98
42
41
38
37
11
10
LOreal(Thailand)
Procter ampGamble
(Thailand)
Beiersdorf AgGermany
Unilever ThaiTrading
Smooth-E Dodaydream Aisance Mentholatum Johnson ampJohnson
Consumer
Karmarts
Q317
Q318
Market Share ()
89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs
Top Manufacturers in Thailand (Facial Moisturizer)
Do Day Dream
NO6
Source The Nielsen Company
The highest market
share per SKUs
among the top
manufacturers
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
24
How to be
top 3 in
Thai facial skin care
2023 Mission
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
25
NAMU LIFE Snailwhite is uniquely
well-positioned as a ldquopremium massrdquo
brand which allows it to capture both
mass and premium market demand
Mass
Premium
Premium Mass
Price lt USD10
Price USD 30-50
Price gt USD 80
Well-positioned as a ldquopremium massrdquo
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
26
LOreal (Thailand) Procter amp Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-EDo Day Dream
Source The Nielsen Company
12
We need to capture at least 12 market share to become top 3
Do Day Dream
2023 2018
4
4
8
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
27
Growing the market share
Modern TradeMarket size THB 34468 mm
Traditional TradeMarket size THB 30560 mm
Inbound TouristMarket size THB 9728 mm
Export
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
28
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
PRODUCT COVERAGEIncrease variety of product
NOW20 Products
TARGET40 Products
PENETRATION Domestic penetration over 85
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
In 2023
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
29
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
PENETRATION Low domestic penetration rate
Market Share
Distribution 72
1
3
28
Leader in TT channel
Rooms for improvement
5
30
Target - 2023
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Source The Nielsen Company
as of Q3rsquo2018
At the end of Sep 2018
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
30
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Expand penetration in traditional trade channelFocus on the Northeastern part of Thailand to capture huge
potential market
1
Strengthen relationship with upcountry distribution
centers2
Million people
RegionTotal
PopulationAge 18-35
Central 227 57
Northern 121 29
Southern 94 25
Northeastern 220 57
Priority
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
31
Growing the market share
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Direct communication to target customersSNAILWHITE roadshow in Northeastern part of Thailand
3
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
32
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
The Worldrsquos Top Tourism Destinations Ranked by Money SpentInternational Tourism Receipts in 2017 (US$ billion)
Source Bloomberg
Thailand to grant visa-on-arrival
Fee waiver for some visitors in bid
To lift tourism slump
Expected inbound tourists in 2018
3755Million tourists
Travelers spend more money
In Thailand than anywhere else
In Asia
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
33
Growing the market share
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
No of Customers in King Power Duty Free (Total Year)
3120Million customers
SNAILWHITE Facial Cream
2
Must-Have Items for Shopping in
King Power Duty Free
SNAILWHITE Mask Shot
19
Source Brand Buffet Marketing Oops KhaoSod
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
34
Growing the market share
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Export
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Capture inbound touristsrsquo
awareness by implementing
effective communication tools
such as airport free Wi-Fi
Product placement
and Chinese KOLsInbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
35
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
CHINA Distribution model bull Appoint new distributor to expand market reach
bull Huge skin care market size with intense competition
bull Expected to grow at market rate
HONGKONG ndash NEW
Distribution model bull Trade center for business and tourist destination for both
foreigner and Chinese
bull Border to china mainland
PHILIPPINESPartnership model bull Sizable skin care market with high forecasted growth rate
bull Strong relationship with partner
bull Leverage marketing know-how to replicate success
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
36
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
37
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
38
Growing the market share
Export
Modern TradePOS 13000 15000
Market size
THB 34468 mm
Traditional TradePOS 5000 400000
Market size
THB 30560 mm
Inbound TouristKing Power DFS 8 9
Market size
THB 9728 mm
PHILIPPINESbull Available in Watsons stores since October
bull Launch campaign ldquoUnlock Beautyrdquo with 70 Beauty influencers
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
39
2018 Wrap up Temporary Setback
Revenue from sales
Unit Million THB
798 765
458
218
0
200
400
600
800
1000
1200
1400
9M17 9M18
Domestic Overseas
-524
-2171256
983
-41
Depreciating
RMBCauses of
Temporary
Setback
Insufficient and inconsistent marketing
activities in China from our distributor
Lacking penetration in traditional trade
channel (1 penetration)
Tourists ferry incident in Phuket
dampening Thailand tourism
Closing down of the biggest wholesale
skin care markets in Thailand
RMB to THB
98
75
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
40
Do Day Dream is still young SNAILWHITE is only 5 years old
We never stop learning to be the TOP player in skin care market
Mission Top 3 market leader in Thai facial skin care in 2023(current No 6 as of Q3rsquo2018)
To be top 3 Gain at least 12 market share(current market share 41 as of Q3rsquo2018)
How to grow the market share Domestic channels new country new product
bull Modern Trade Increase variety of products
bull Traditional Trade Increase penetration (from 1 to target 30)
bull Inbound Tourist Effective communication tools
(airport WI-FI KOL)
bull Export New overseas subsidiaries and distributors
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
41
TABLE OF CONTENTS
Background and business
Key financial performance
Where we are so far
Company outlook
Appendix
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
42
Appendix Key financial strategies
Capital structure
Risk management
Dividend policy
bull Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital
structure
bull Current DE and IBDE is at 07x and 04x respectively However the IPO proceed
would increase our equity base and thus expand debt room for future growth
opportunities
bull The Company has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull Our subsidiary has dividend payout policy of at least 50 of the net profit under
standalone financial statements
bull In 2016 and 9M2017 462 and 384 of the Companyrsquos total raw material purchased
are made in USD
bull The Company hedge foreign exchange rate risk by entered into forward contract for
hedging approximately 70 of USD purchased value
bull Our insurance made cover damage incur approximately THB 1049 mn which cover
our total fixed asset value
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
43
Profit and loss statement
Year ended December 31 Quarter ended (3 months)
(THB mn) 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Revenues
Sales 4380 9551 12368 16744 3552 5172 3840 4181 3743 3592 2498
Domestic sales 3543 7751 10907 11617 2623 2986 2376 36318 2991 2585 2078
Export sales 837 1800 1462 5128 929 2186 1464 549 752 1007 419
Service income - 00 01 01 00 00 00 00 00 00 00
Other income 01 16 32 98 37 17 18 26 123 198 112
Total revenues 4381 9567 12402 16843 3589 5189 3858 4207 3866 3790 2610
Expenses
Cost of sales 2482 3475 3748 5349 1105 1480 1390 1373 1010 1207 977
Selling expenses 1474 3309 3545 5809 1462 1466 1474 1406 1196 1434 1087
Administrative expenses 74 303 871 1434 238 392 419 385 341 411 520
Total expenses 4030 7087 8164 12592 2805 3338 3283 3164 2547 3052 2584
Profit before finance cost and CIT 351 2480 4238 4251 784 1851 575 1043 1319 738 26
Finance cost (04) (39) (58) (120) (28) (31) (34) (27) (32) (29) (22)
Profit before CIT 347 2441 4180 4131 756 1818 541 1016 1287 709 04
Income tax (72) (502) (828) (621) (132) (352) (96) (41) (166) (79) (02)
Profit for the year 275 1939 3352 351 624 1466 444 975 1121 630 02
Earning per share (Adj) 50 176 234 150 028 065 019 038 035 020 (0002)
Statements of comprehensive income
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
44
As at December 31
(THB mn) 2014 2015 2016 2017
Cash and cash equivalents 417 739 415 43885
Total current assets 1817 3787 5129 7340
Total non-current assets 690 1498 2626 3380
Total assets 2507 5285 7755 54605
Total current liabilities 1404 2352 3532 6172
Interest bearing debt 889 1268 1957 3353
Total liabilities 2026 2860 4005 6740
Total shareholdersrsquo equity 481 2425 3750 47865
Total liabilities and shareholdersrsquo equity 2507 5285 7755 54605
Appendix Balance sheet and cash flow statement
Statements of financial position
Year ended December 31
(THB mn) 2015 2016 2017
Net cash flows from operating activities 833 2188 2453
Net cash flows from (used in) investing activities (865) (1140) (963)
Net cash flows used in financing activities 354 (1372) 41980
Cash and cash equivalents at end of yearperiod 739 415 43470
Statements of cash flows
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
45
Appendix China outlook
Products with CFDA
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
bull Market size is much bigger than
Cross-border e-commerce
bull Allow wholesale transaction
bull Lower transportation cost due
to the bundle shipments
bull Cross-border is temporary
which is subject to change
according to Chinses policy
bull Not eligible for wholesale
transaction
Offline
Required CFDA
bull Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
bull More easily accessible
in Mainstream online
platform and offline
channels which the
market is much bigger
than Cross-border e-
commerce alone
bull 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
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
46
Rank Brand Product Size
Market Share
Q3rsquo18
Convenience
Distribution
Q3rsquo18
Convenience
Market Share
Q3rsquo18
Open Trade
Distribution
Q3rsquo18
Open Trade
1 Garnier Sakura WhPinkish RadMoiCrSpf21 Pa+++ 7 Ml 54 97 83 51
2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr 7 Ml 53 95 84 44
3 GarnierLigComWhSpeed MulActWhSpf20
SRCr7 Ml 45 96 59 42
4 Rojukiss Other 6 Ml 37 69 NA NA
5 Ponds Age MiraWrinkle Cor Day CrRatinol-C 7 Gm 33 93 46 34
6 Rojukiss Other 6 Ml 31 70 NA NA
7 Snail White Gold SPF30 PA+++ Cr 7 Ml 29 75 01 2
8 Smooth-E Natural Source Cream 10 Gm 28 76 00 0
9 Ponds White Beauty Instabright Tone Up Milk Cr 7 Gm 26 93 22 14
10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 25 89 08 8
Appendix Snailwhite performs well in CVS but still has great opportunity in Open Trade
Source The Nielsen Company
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
47
2017 Beauty Industry Peer Comparison
68 68
55 54
47
72
59
73
43
27
34
45
32
54
43
61
25
41
21
9
1618 18
12
21
33
19
3
14 1511
8
Gross Profit SGampA Operating Profit Net Profit
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
CONTACT US
DO DAY DREAM PLC
Investor Relations Department
Tel +662-917-3055 Ext808
Fax +662-917-3054
Email irdodaydreamcom
Website wwwdodaydreamcom
Contact person
Ms Chanoknan Thiemrat (Investor Relations)
Email Chanoknantdodaydreamcom
Company satisfaction survey
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
49
2023 OxersquoCure OutlookSubsidiary company for dermatological skin ndash Dream Dermatology
2023
To be market leader in Thai acne skin care
20232018
500
300
Channel
Product
Overseas
2023 Target 500 MB in sales
bull THB 240 mm from modern trade
and traditional trade
bull Improve penetration to 50
bull THB 150 mm from products
bull Increased variety of products
to 24 products
bull THB 70 mm from Overseas
bull Growth in new countries
1
2
31 2
3
Top of mind brand for acne and sensitive
skin care in Thailand
1
Total of 18 new products to achieve target
sale and profit
3
Establish new product series for sensitive
and acne skin care to acquire mass
market in Thailand
2
50
50
