Opp Day Q3 2018 Information as of 3Q18 Latest update on 26 th Nov - PowerPoint PPT Presentation

Opp Day Q3 2018 Information as of 3Q18 Latest update on 26 th Nov 2018

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TABLE OF CONTENTS Background and business Key financial performance Where we are so far Company outlook Appendix 3

Since 2013 Since 2018 Leading local skin care company in Thai market, owner of Namulife SNAILWHITE and Oxe’Cure 4

Our Journey Since 2010 has seen us become a leading skin care company in Thailand CHINA HONG KONG • Snail Filtrate rejuvenates the skin • Tailored the product to suit the climate and skin of SEA countries • Created the new segment for the market: the Premium-Mass 2015 2017 2016 • Launched 8 more • Founded Namu Life 2012-2010 products of NAMU • Plus Co., Ltd to be Launched 4 more LIFE SNAILWHITE in the Company’s local products of NAMU facial skin care and LIFE SNAILWHITE distribution arm • Founded Do Day Dream PLC. body care • and expanded into Launched 3 more 2014 to focus on OEM Business • Started to produce products of NAMU body cleansing of skin care products with 2013 small size products • LIFE SNAILWHITE • Started production in Launched 3 more products registered and paid-up (Sachet) selling the new plant located and expanded into of NAMU LIFE SNAILWHITE capital THB 1 mn at par value through leading in Rojana Industrial sunscreen and • and expanded into body Founded NAMU LIFE Brand of THB 100 each convenience stores Park in October 2016 cleansing products care product and launched the first product, • Listed on the Stock • • Implemented SAP Invested in land with • “SNAILWHITE SECRETION Expanded into modern Exchange of Thailand • factory located in Increased share trade and export to China, FILTRATE MOISTURE • Founded Do Infinite capital to THB 225 mn, Rojana Industrial FACIAL CREAM” Hong Kong, Myanmar and Dream Co., Ltd to be focusing on Park and started to • Cambodia Main distribution channels are IHQ for the Company’s • renovate new plant international Increased share capital from online (Line, Facebook and international business expansion THB 1 mn to THB 10 mn for Instagram) and traditional trade business expansion 5

Company structure and shareholding structure Parent and subsidiaries DO DAY DREAM 100% 100% 95% THAILAND NAMU LIFE PLUS DO INFINITE DREAM DREAM DERMATOLOGY Domestic Distributor International Headquarter Dermatological company 100% 100% DO DAY DREAM TRADING DO DAY DREAM HOLDING SINGAPORE Intermediary in trading Investment arm for with foreign customers overseas businesses 51% DDD KCA Corporation POTENTIAL PARTNERS INTERNATIONAL Future potential partners to do Philippines Distributors overseas business 6

Extensive Product Portfolio Covering Five Categories of Skincare New Product 20 Products 41 SKUs As of 30 Sep 2018 30 ml, 690 THB 7 ml, 39 THB 6 Products 12 SKUs As of 30 Sep 2018 7

Thailand’s facial mask market size in 2017 Unit: Million baht 1,984 29.1% SNAILWHITE ICY MASK Growth (Leave on facial mask) Market size THB 405 mm 1,260 CAGR 109.6% 905 2015 2016 2017 Tissued/Pad Rinse Off Leave On Peel Off 8 Source: Euro Monitor, The Nielsen Company

TABLE OF CONTENTS Background and business Key financial performance Where we are so far Company outlook Appendix 9

Revenue from sales in 9M18 Revenue from sales Product Group Unit: Million baht 2017 9M17 9M18 1,400 1,256 Sunscreen Sunscreen Others Others Sunscreen Body -21.7% Body Others 4% 2% 6% 3% Body 4% Cleansing Cleansing Growth 3% Cleansing 8% 7% 1,200 8% 983 Facial 458 Cleansing Facial 1,000 - 52.4% 4% Cleansing Facial Growth 5% 218 Cleansing Body 7% 800 Care Body 4% Care 3% Body 600 Care Facial Facial 3% Facial Skin Care -4.1% Skin Care 798 77% Skin Care 765 78% 400 Growth 74% 200 Distribution Channels - 9M17 9M18 2017 9M17 9M18 Domestic Overseas Others Other Others 0% 1% 1% Modern Export Modern Trade 22% Trade Export 98% 75% 28% 30% 29% Modern Trade Export 22% 38% 36% 36% Traditional Traditional Traditional Trade and Trade and Trade and 64% Distributio Distributio Distributio n Partner n Partner n Partner 78% 39% 41% 35% 10

Key challenges and solutions for DDD Channel challenges Revenue by distribution channels - 52.4% Growth 5.0% Growth 37.0% Growth - 69.6% Growth Modern Trade Local Traditional Trade Inbound Tourists - Focused Export 11 Inbound Tourists includes King Power Duty Fee and specialty stores - which mainly focus on inbound tourists.

Quarterly revenue 2016-2018 Unit: Million baht Closing down of the 519 Lower number biggest wholesale of tourist due skin care markets in to the limited of Thailand since May zero-dollar tour 2018 421 386 386 218 379 56 359 King Rama IX mourning period 75 146 93 101 282 261 254 40 Lowest point of total revenue 30 42 363 299 299 262 258 243 238 215 208 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 12

Cost of goods sold in 9M18 COGS Unit: Million baht 535 56.7% • COGS to sales significantly decreased from 2015 398 thanks to economies of scale and better bargaining 375 349 power with the suppliers which result in lower 319 average cost of raw material and packaging • Significant portion of COGS attributable to raw 31.9% 31.6% 32.5% 32% 36.4% 3-year target: materials and packaging 28 – 32% 248 30.3% • 28% 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. 2014 2015 2016 2017 9M17 9M18 Raw material and Packaging Freight Labor Depreciation Others % of Sales 13

Selling & administrative expenses in 9M18 Selling & administrative expenses Unit: Million baht 48.6% 43.2% 43.2% • Selling & Administrative Expense has shown significant increase correlated with increase in 38% 37.8% sales activity. The increase was mainly attributable 3-year target: 35.7% 35.3% by advertising and promotional expenses and 35 – 38% 725 35% employee cost • Selling and administrative expenses mainly comprise advertising and promotional expenses and employee expenses 545 499 • 9M 2018, y-o-y SG&A decreased by 8.44% .The decrease in SG&A was mainly due to the 442 decrease in advertising and sale promotion expenses as there was no deferred 361 advertisement in 1Q18 as it did in 1Q17. • 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 155 factor, cause an exceed in SG&A target. 2014 2015 2016 2017 9M17 9M18 Advertising and Promotional Employee costs Freight Others 14

Profitability in 9M18 Gross Profit EBITDA Net Profit Unit: Million baht Unit: Million baht Unit: Million baht 3-year target: 68 – 72% 72% 69.7% 68.4% 67.5% 68% 63.6% 3-year target: 35.5% 32% 32% 862 859 43.3% 26.8% 26.9% 3-year target: 26.6% 27.0% 22 – 24% 664 24% 22.6% 608 22% 20.8% 20.1% 20.3% 17.1% 452 441 340 351 335 254 253 8.4% 233 190 194 6.3% 175 37 28 2014 2015 2016 9M17 9M18 2014 2015 2016 2017 9M17 9M18 2014 2015 2016 2017 9M17 9M18 EBITDA % EBITDA Margin Gross Profit % Gross Margin Net Profit % NP Margin 15

Financial position 2015 2016 2017 9M18 Balance Sheet Key Financial Ratio 46 53 64 100 Days Sales Outstanding (days) Unit: Million baht Days Inventories on Hand (FG) D 29 40 48 120 (days) B 56 80 76 84 Days Payable Outstanding (days) C 5,460 5,287 49.8% 51.4% 11.3% 4.42% Return on Assets (%) 4,973 4,786 Return on Equity (%) 133.5% 108.6% 13.6% 4.70% 1.2x 1.1x 0.1x 0.06X Debt to Equity Ratio (times) Interest Bearing Debt to Equity 0.5x 0.5x 0.1x 0.02x Ratio (times) Total liabilities increased mainly due to loan to A finance new factory Total assets increased mainly due to increase in B A account receivable and cash and cash equivalent 776 674 529 401 375 314 286 243 Total Equity increased mainly due to the initial C public offering (IPO) on Dec 2017 2015 2016 2017 9M18 Total Assets Total Liabilities Shareholders'Equity FG decreased QoQ but PM increased due to new D product launch in Q4 16

TABLE OF CONTENTS Background and business Key financial performance Where we are so far Company outlook Appendix 17

We are a top-of-mind brand in Thailand Supermarket/Hypermarket Market Share No. 7 Q3’17: 5% in Supermarket/ Q3’18: 4% Hypermarket Convenience Stores Market Size of Facial Moisturizer Market Share No. 6 2017: THB 42 billion Q3’17: 4% in Convenience Growth: 8% Q3’18: 7% Stores Market Share No. 7 Q3’17: 4% New Snailwhite Sachets play in Thailand vital role in capturing Market Share Q3’18 : 4% 18 Source: EuroMonitor, The Nielsen Company

TABLE OF CONTENTS Background and business Key financial performance Where we are so far Company outlook Appendix 19

Mission Statement 2023 To be top 3 market leader in Thai facial skin care 2030 To be a market leader in ASEAN facial skin care 2038 To be a market leader in Asian facial skin care 20

Does it matter to be Asian skin care market size in 2017 top 3 in Thai market ? Unit: THB BN 883.20 No.4 Asian skin care market 521.60 195.20 67.20 73.60 70.40 57.60 48.00 32.00 21 Source: Euromonitor report