Do Day Dream 1H 2019 Information as of period ended 30 Jun 2019 - PowerPoint PPT Presentation

Do Day Dream 1H 2019 Information as of period ended 30 Jun 2019 Latest update on 27 th Aug 2019

Financial Reports: Key Takeaways 1. Sales revenue was heavily affected by the cancellation of SINO pacific (distributor) contract by the end of Q2 2019 • DDD has to accept returns from sino pacific which accounted in the reduction of net sales • Sales directly to TT customers shall only begin after the cancellation of SINO Pacific Contract 2 .Modern Trade performed better QoQ despite negative market sentiment 3. The inbound tourist revenue was heavily affected by the significant decline of the number of tourists. 4. Export revenue significantly increased QoQ from Q1 2019 as a result of ever-improving Philippines subsidiaries 5. % COGS increased in Q2 2019 compared to Q1 2019 due to promotions imposed on aging/slow moving products to clear out inventory 6. Selling expense slightly increased in Q2 2019 compared to Q1 2019 due to launches of new products. This is, however, much lower than that of the same period in 2018 2

Revenue from sales 1H 2019 Revenue from sales (YoY) Products Group Distribution Channels Unit: THB Million 1H 2018 1H 2018 800 734 Sunscreen Body Others Others 2% Cleansing 5% 0% 9% 700 176 Facial Export -48% Cleansing 24% Modern 600 4% Trade 37% Body 500 Care 3% Traditional Trade and 384 Distribution Partner 400 Facial Skin 39% -52% Care 85 77% 300 558 200 1H 2019 -46% 1H 2019 300 Others Sunscreen 100 Others 7% 3% 1% Body Cleansing Export 0 8% 22% 1H'2018 1H'2019 Domestic Overseas Modern Facial Trade Cleansing 51% 12% Traditional Trade and Facial Skin 22% 24% Distribution Partner Care 26% 64% Body 78% Care 6% 76% 3

Revenue from sales 1H 2019 Revenue from sales (YoY) Revenue from sales (QoQ) Unit: THB Million Unit: THB Million 500 500 450 450 359 400 400 -49% 350 350 101 -10% 300 300 250 250 202 182 -47% 182 200 200 31 71% 53 53 150 150 258 -50% 100 100 171 129 -25% 129 50 50 0 0 1H'2018 1H'2019 Q1'2019 Q2'2019 Domestic Overseas Domestic Overseas 16% 28% 29% 29% 71% 71% 84% 72% 4

Revenue from sales 1H 2019 Revenue from sales (6M YoY) Revenue from sales (QoQ) Unit: THB Million Unit: THB Million 300, 000, 000 160, 000, 000 -24% 140, 000, 000 250, 000, 000 23% 120, 000, 000 -57% 200, 000, 000 100, 000, 000 -62% 80, 000, 000 150, 000, 000 34% 60, 000, 000 -36% -103% 100, 000, 000 40, 000, 000 20, 000, 000 -12% 50, 000, 000 0 0 - 20, 0 00, 00 0 1H 2018 1H 2019 Q1 2019 Q2 2019 5

Inbound Tourist Outlook Number of Inbound Tourist Revenue from Inbound Tourist Unit: Million Unit: THB Million -17% -22% 700, 000 11.12 12. 00 571,640 573,798 10.17 600, 000 8.97 10. 00 8.87 3.12 500, 000 172,530 175,724 -19% 488,129 3.17 448,433 -20% 8. 00 2.53 2.76 400, 000 147,738 138,614 6. 00 300, 000 8.00 4. 00 401,269 395,916 7.00 200, 000 6.44 6.11 293,602 275,904 2. 00 100, 000 0. 00 0 Q1'2018 Q2'2018 Q1'2019 Q2'2019 Q1'2018 Q2'2018 Q1'2019 Q2'2019 Other Countries China Other Countries China NUMBER OF CHINESE TOURIST Unit: Million 1.5 1.5 1.2 1 0.99 0.97 0.94 0.9 0.87 0.87 0.84 1 1 0.68 0.64 0.65 0.89 0.86 0.87 0.82 0.81 0.79 0.79 0.79 0.5 0.76 0.76 0.76 0.5 0.75 2017 2018 2019 Dec Jan 6 Source: Ministry of T ourism and Sports

Cost of goods sold 1H 2019 COGS Gross Profit Unit: THB Million Unit: THB Million 69.7% 69.8% 69.4% 67.6% 67.0% 63.6% 56.7% 1131 862 837 43.3% 33.0% 32.5% 30.7% 30.2% 36.4% 608 30.3% 543 512 412 375 349 267 222 248 190 118 2014 2015 2016 2017 2018 1H 2018 1H 2019 2014 2015 2016 2017 2018 1H 2018 1H 2019 Raw material and Packaging Freight Labor Depreciation Others % of Sales Gross Profit % Gross Margin 7

Selling & administrative expenses 1H 2019 Selling Expense Administrative Expense 50.0% 70.0% Unit: THB Million Unit: THB Million 40.0% 52.2% 30.0% 50.0% 40.9% 35.9% 18.5% 20.0% 34.6% 34.7% 33.6% 12.2% 30.0% 26.5% 8.8% 8.1% 10.0% 7.2% 581 3.2% 1.7% 0.0% 510 10.0% -10.0% -10.0% 331 319 -20.0% 263 -30.0% 201 159 -30.0% 135 147 87 -40.0% 40 34 30 7 -50.0% -50.0% 2014 2015 2016 2017 2018 1H 2018 1H 2019 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Employee Cost Miscellaneous Depreciation and amortization Advertising and Promotional Employee Costs Freight Others % of Sales Tax and other fee Others % Gross Margin 8

Profitability 1H 2019 Net Profit EPS 50.0% Unit: THB Million Unit: THB Per Share 40.0% Before IPO 30.0% 27.0% 22.9% 20.8% 20.3% 20.0% 14.2% 17.60 10.0% 6.3% 2.6% 0.0% -10.0% -20.0% 5.00 -30.0% 2.30 -40.0% 1.49 0.55 0.57 0.01 -50.0% 2014 2015 2016 2017 2018 1H 2018 1H 2019 2014 2015 2016 2017 2018 1H 2018 1H 2019 Net Profit % of Sales EPS 9

Leading local skin care company in Thai market, owner of NAMULIFE SNAILWHITE, Oxe’Cure , PRETTii FACE and SoS 10

We are a top-of-mind brand in Thailand Main Business Market Share of No. 9 Facial Moisturizer in Thailand 2017: 3.8% 2018 :4.3% 1H 2019 : 3.0% Supermarket/Hypermarket Convenience Stores Open Trade Market Share Market Share Market Share No. 10 No. 7 No. 14 2017 : 5.0% 2017: 3.0% 2017 : N/A in Supermarket/ in Convenience in Convenience 2018 : 4.1% 2018: 6.6% Hypermarket Stores 2018 : 0.3% Stores 1H 2019 : 2.3% 1H 2019 : 5.6% 1H 2019 : 0.4% Source: The Nielsen Company 11 * : Weighted Distribution

Extensive Product Portfolio Covering Five Categories of Skincare New Product 21 Products 43 SKUs 4 Products 4 SKU 1 Products 1 SKU 6 Products 12 SKUs Official Launched Jun 2019 12 Note : Information as of 1 Sep 2019

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Mission Statement 2023 To be top 3 market leader in Thai facial skin care 2030 To be top 3 market leader in ASEAN facial skin care 2038 To be top 3 market leader in Asian facial skin care 17

Growing the market share Channels 1.Modern Trade 2.Traditional Trade 3.Inbound Tourist 4.Export Market size: THB 34,468 mm Market size: THB 30,560 mm Market size: THB 9,728 mm 18

Growing the market share Growing the market share Channels PENETRATION Domestic penetration over 85% Expand from online channel to mainstream Focus on CVS over Thailand within 2019 1.Modern Trade New Brand launch on Mar 2019, List-in Modern Trade Channel POS: 13,000/ 15,000 (Focus on specialty Store) Market size : THB 34,468 mm Expand to new modern trade store (Focus on Drug Store) 19

Growing the market share Growing the market share Channels PENETRATION Target - 2023 Leader in TT channel* Market Share 28% 1% 5% 2.Traditional Trade Distribution 72% 2% - 3% 30% POS: 5,000 / 400,000 At the end of Sep 2018* Market size: THB 30,560 mm Rooms for improvement 20

Growing the market share Growing the market share Channels PENETRATION Expand penetration in traditional 1 trade channel Target - 2023 Strengthen relationship with 2 upcountry distribution centers 1% 5% 2.Traditional Trade Direct communication to target 3 2% - 3% 30% POS: 5,000 / 400,000 customers Market size: THB 30,560 mm Rooms for improvement 21

Growing the market share Growing the market share Channels Wholesalers, retailer and mom-and-pop store in upcountry Expand penetration and build relationship with wholesalers, retailer in upcountry 2.Traditional Trade POS: 5,000 / 400,000 Market size: THB 30,560 mm 22

Growing the market share Growing the market share Channels Direct communication to target customers Communication for TT Channel SNAILWHITE roadshow in Northeastern part of Thailand 2.Traditional Trade POS: 5,000 / 400,000 Market size: THB 30,560 mm 23

Growing the market share Growing the market share Channels CHANNEL COVERAGE Increase point of sale in tourist attractions to capture more potential customers Revenue from Inbound Tourist 2017 2018 THB mm 3.Inbound Tourist 1. Bangkok 596,281 681,329 King Power DFS: 8 / 9 2. Phuket 374,902 424,565 Market size: THB 9,728 mm 3. Chonburi 191,403 218,431 4. Surat Thani 75,326 85,884 5. Krabi 68,460 78,834 24

Growing the market share Growing the market share Channels CHINA HONGKOKG PHILIPPINES Distribution model Distribution model Partnership Model 4 .Export • Available only in Online • Available in Watsons, • Available in Watsons 330 stores • Launch campaign “Unlock Channel (VIP, TAOBAO,JD) SASA and Mannings Store • 4 Products with CFDA • Created brand awareness Beauty” with Beauty influencers • Created brand awareness via online channel and out to created brand awareness via online campaign with of home media s beauty influencers 25

Philippines 26

B I L L B O A R D S A N D M A L L M A R K E T I N G Philippines 27

S N A I L W H I T E S T U D I O : W O K E U P L I K E T H I S P O R T R A I T S Philippines 28

P R E S S A N D C O N T E N T F E A T U R E S Philippines 29

A W A R D S Philippines • Most Successful New Brand Of The Year (Beauty) • Most Promising New Product Of The Year “SNAILWHITE WHIPP SOAP” • Best Exclusive Product Of The Year 30