Do Day Dream
1H 2019
Information as of period ended 30 Jun 2019
Latest update on 27th Aug 2019
2
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
3
Revenue from sales 1H 2019
Revenue from sales (YoY)
Unit: THB Million
558
300
176
85
0
100
200
300
400
500
600
700
800
1H'2018 1H'2019
Domestic Overseas
734
384
-48%
-46%
-52%
24%
76%
22%
78%
Products Group Distribution Channels
Facial Skin Care64%Body
Care6%
Facial Cleansing
12%
Body Cleansing
8%
Sunscreen3%
Others7%
Facial Skin Care77%
Body Care3%
Facial Cleansing
4%
Body Cleansing
9%
Sunscreen2% Others
5%
Modern Trade51%Traditional Trade and
Distribution Partner26%
Export22%
Others1%
Modern Trade37%
Traditional Trade and Distribution Partner
39%
Export24%
Others0%
1H 2018
1H 2019
1H 2018
1H 2019
4
Revenue from sales 1H 2019
Revenue from sales (QoQ)
Unit: THB Million
171129
31
53
0
50
100
150
200
250
300
350
400
450
500
Q1'2019 Q2'2019
Domestic Overseas
182
Unit: THB Million
258
129
101
53
0
50
100
150
200
250
300
350
400
450
500
1H'2018 1H'2019
Domestic Overseas
359
182
-49%
-50%
-47%
28%
72%
29%71%
16%
84%
Revenue from sales (YoY)
-10%
-25%
202
29%
71%
71%
5
Revenue from sales 1H 2019
Revenue from sales (QoQ)
Unit: THB Million Unit: THB Million
0
50, 000, 000
100, 000, 000
150, 000, 000
200, 000, 000
250, 000, 000
300, 000, 000
1H 2018 1H 2019
Revenue from sales (6M YoY)
-24%
-62%
-57%
- 20,0 00,00 0
0
20, 000, 000
40, 000, 000
60, 000, 000
80, 000, 000
100, 000, 000
120, 000, 000
140, 000, 000
160, 000, 000
Q1 2019 Q2 2019
-103% -36%
-12%
34%
23%
6
Inbound Tourist Outlook
Source: Ministry of Tourism and Sports
Number of Inbound Tourist
7.006.11
8.006.44
3.17
2.76
3.12
2.53
0. 00
2. 00
4. 00
6. 00
8. 00
10. 00
12. 00
Q1'2018 Q2'2018 Q1'2019 Q2'2019Other Countries China
10.17
8.87
Unit: Million
Revenue from Inbound Tourist
395,916
293,602
401,269
275,904
175,724
147,738
172,530
138,614
0
100, 000
200, 000
300, 000
400, 000
500, 000
600, 000
700, 000
Q1'2018 Q2'2018 Q1'2019 Q2'2019Other Countries China
571,640
Unit: THB Million
573,798
Unit: Million
Jan Dec
0.86 0.79 0.79 0.75 0.76 0.760.87 0.89
0.76 0.81 0.79 0.82
0.971.2
1 0.990.87 0.9 0.94 0.87
0.64 0.65 0.680.84
0.5
1
1.5
0.5
1
1.5
NUMBER OF CHINESE TOURIST
2017 2018 2019
11.12
488,129
8.97
448,433-19%
-22%-17%
-20%
7
248
349 375
543
412
222
118
56.7%
36.4%
30.3%
32.5% 33.0%30.2% 30.7%
2014 2015 2016 2017 2018 1H 2018 1H 2019
Raw material and Packaging Freight Labor Depreciation Others % of Sales
Cost of goods sold 1H 2019
COGS
Unit: THB Million
190
608
862
1131
837
512
267
43.3%
63.6%
69.7%67.6% 67.0%
69.8% 69.4%
2014 2015 2016 2017 2018 1H 2018 1H 2019
Gross Profit % Gross Margin
Gross Profit
Unit: THB Million
8
Selling & administrative expenses 1H 2019
147
331 319
581
510
263
201
33.6% 34.6%
26.5%
34.7%
40.9%35.9%
52.2%
-50.0%
-30.0%
-10.0%
10.0%
30.0%
50.0%
70.0%
2014 2015 2016 2017 2018 1H 2018 1H 2019
Advertising and Promotional Employee Costs Freight Others % of Sales
Selling Expense
Unit: THB Million
730
87
135159
34 40
1.7% 3.2%
7.2% 8.1%
12.2%8.8%
18.5%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
Employee Cost Miscellaneous Depreciation and amortization
Tax and other fee Others % Gross Margin
Administrative Expense
Unit: THB Million
9
Before IPO
Profitability 1H 2019
6.3%
20.3%
27.0%
20.8%
14.2%
22.9%
2.6%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
2014 2015 2016 2017 2018 1H 2018 1H 2019
Net Profit % of Sales
Net Profit
Unit: THB Million
5.00
17.60
2.300.57 1.49 0.55 0.01
2014 2015 2016 2017 2018 1H 2018 1H 2019
EPS
EPS
Unit: THB Per Share
10
Leading local skin care company in
Thai market, owner of
NAMULIFE SNAILWHITE,
Oxe’Cure, PRETTii FACE and SoS
11Source: The Nielsen Company* : Weighted Distribution
We are a top-of-mind brand in Thailand
Market Share of
Facial Moisturizer2017: 3.8%
2018 :4.3%
1H 2019 : 3.0%
No. 9in Thailand
Market Share
2017 : 5.0%
2018 : 4.1%
1H 2019 : 2.3%
Supermarket/Hypermarket
No. 10in Supermarket/
Hypermarket
No. 7in Convenience
Stores
Market Share
2017: 3.0%
2018: 6.6%
1H 2019 : 5.6%
Convenience Stores Open Trade
Market Share
2017 : N/A
2018 : 0.3%
1H 2019 : 0.4%
Main
Business
No. 14in Convenience
Stores
12Note : Information as of 1 Sep 2019
New Product
Extensive Product Portfolio Covering Five Categories of Skincare
21 Products43 SKUs
6 Products12 SKUs
4 Products4 SKU
1 Products1 SKU
Official Launched Jun 2019
13
14
15
16
17
2023To be top 3 market leader in Thai facial skin care
2038To be top 3 market leader in Asian facial skin care
2030To be top 3 market leader in ASEAN facial skin care
Mission Statement
18
1.Modern TradeMarket size: THB 34,468 mm
2.Traditional TradeMarket size: THB 30,560 mm
3.Inbound TouristMarket size: THB 9,728 mm
4.Export
Channels Growing the market share
19
Growing the market share
Growing the market share
1.Modern TradePOS: 13,000 / 15,000
Market size : THB 34,468 mm
Expand from online channel to mainstream
Focus on CVS over Thailand within 2019
New Brand launch on Mar 2019,
List-in Modern Trade Channel (Focus on specialty Store)
Expand to new modern trade store (Focus on Drug Store)
Domestic penetration over 85%
PENETRATION
Channels
20
Growing the market share
Growing the market share
2.Traditional TradePOS: 5,000 / 400,000
Market size: THB 30,560 mm
PENETRATION
Market Share
Distribution 72%
28%
Leader in TT channel*
At the end of Sep 2018*
1%
2% - 3%
Rooms for improvement
5%
30%
Target - 2023
Channels
21
Growing the market share
Growing the market share
2.Traditional TradePOS: 5,000 / 400,000
Market size: THB 30,560 mm
PENETRATION
Expand penetration in traditional
trade channel
Strengthen relationship with
upcountry distribution centers
Direct communication to target
customers
1
2
3
1%
2% - 3%
Rooms for improvement
5%
30%
Target - 2023
Channels
22
Growing the market share
Growing the market share
2.Traditional TradePOS: 5,000 / 400,000
Market size: THB 30,560 mm
Wholesalers, retailer and mom-and-pop store in upcountry
Expand penetration
and build relationship
with wholesalers,
retailer in upcountry
Channels
23
Growing the market share
Growing the market share
2.Traditional TradePOS: 5,000 / 400,000
Market size: THB 30,560 mm
Direct communication to target customers
Communication for TT Channel
SNAILWHITE roadshow in
Northeastern part of Thailand
Channels
24
Growing the market share
Growing the market share
3.Inbound TouristKing Power DFS: 8 / 9
Market size: THB 9,728 mm
CHANNEL COVERAGEIncrease point of sale in tourist attractions to
capture more potential customers
Revenue from Inbound Tourist
THB mm 2017 2018
1. Bangkok 596,281 681,329
2. Phuket 374,902 424,565
3. Chonburi 191,403 218,431
4. Surat Thani 75,326 85,884
5. Krabi 68,460 78,834
Channels
25
Growing the market share
Growing the market share
4.Export
CHINADistribution model
• Available only in Online
Channel (VIP, TAOBAO,JD)
• 4 Products with CFDA
• Created brand awareness
via online campaign with
beauty influencers
HONGKOKGDistribution model
• Available in Watsons,
SASA and Mannings Store
• Created brand awareness
via online channel and out
of home media s
PHILIPPINESPartnership Model
• Available in Watsons 330 stores
• Launch campaign “Unlock
Beauty” with Beauty influencers
to created brand awareness
Channels
26
Philippines
27
Philippines
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
28
Philippines
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
29
Philippines
P R E S S A N D C O N T E N T F E A T U R E S
30
Philippines
A W A R D S
• Most Successful New Brand Of The Year (Beauty)
• Most Promising New Product Of The Year
“SNAILWHITE WHIPP SOAP”
• Best Exclusive Product Of The Year
31
Growth Drivers 2019
PhilippinesCreate Brand Awareness and
Expand Distribution Channel
New Product/Brand LaunchTotal New 8 Products, 13 SKUs
Traditional Trade ChannelExpand Distribution Coverage from 2% to 5%
Increase point of sales in top tourist provinces
32
Do Day Dream is still young. We have a big dream.
We never stop growing to be the market leader.
Road to 2023Mission: Top 3 market leader in Thai facial skin care in 2023(current: No. 6 as of 2018)
To be top 3: Gain at least 12% market share(current market share 4.3% as of 2018)
How to grow the market share: Domestic channels / new country / new product
• Modern Trade: Increase variety of products
• Traditional Trade: Increase penetration (from 1% to target 30%)
• Inbound Tourist: Effective communication tools
(airport WI-FI, KOL) and Increase present in tourist provinces
• Export: New overseas subsidiaries and distributors
33
TABLE OF CONTENTS
Appendix
34
Appendix: Financial position
(THB mn) Dec 31, 2017 Dec 31, 2018 31 Mar, 2019 30 Jun 2019
Cash and cash equivalents 4,388.52 1,774.48 1,212.31 1,452.97
Current investments-
2,399.56 2,903.01 2,510.90
Trade accounts receivable and other receivables 429.18 265.89 249.10 238.46
Inventories 291.68 391.58 397.72 384.28
Property, plant and equipment 278.56 274.22 266.80 262.04
Intangible assets 16.50 108.83 108.24 107.62
Other 56.05 63.64 37.62 41.70
Total Assets 5,460.49 5,248.20 5,174.80 4,997.97
Short-term loans from financial institutions 267.14 - - -
Trade accounts payable and other payables 309.28 156.90 146.31 150.78
Long-term loans from financial institutions 68.19 91.20 - -
Other 29.39 17.38 29.79 18.29
Total liabilities 674.00 265.48 176.10 169.07
Issued and paid-up share capital 316.00 317.89 317.89 317.89
Share premium on ordinary shares 4,347.91 4,399.86 4,399.86 4,399.86
Retained earnings (Inc. legal reserve) 154.29 269.34 288.28 118.26
Other (31.71) (4.37) (7.33) (7.11)
Total equity 4,786.49 4,982.72 4,998.70 4,828.90
Total liabilities and equity 5,460.49 5,248.20 5,174.80 4,997.97
Balance Sheet
• Assets
Cash spent as working capital to
acquire other assets such as higher
inventories or loan payments to
financial institutions mainly
contributed to the decline in total
assets.
• Liabilities
Total liabilities fell as short-term loans
from financial institutions and trade
payables and other payables
dropped.
• Equity
The increase in shareholders’ equity
was mainly caused by the Company’s
retained earnings from the Company’s
performance.
35
Appendix: Profit and loss statement
Statements of comprehensive income
Year ended December 31, Quarter ended (3 months)
(THB mn) 2016 2017 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Revenues
Sales 1,236.8 1,674.4 1,249.6 355.2 517.2 384.0 418.0 374.3 359.2 249.8 266.3 202.23 182.19
Domestic sales 1,090.7 1,161.7 982.2 262.3 298.6 237.6 380.4 299.1 258.5 207.8 216.7 170.86 127.13
Export sales 146.2 512.8 267.4 92.9 218.6 146.4 37.6 75.2 100.7 41.9 49.6 31.37 55.06
Service income 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other income 3.2 9.8 54.4 3.7 1.7 1.8 2.7 12.3 19.8 11.2 11.0 15.23 16.95
Total revenues 1,240.2 1,684.3 1,304.0 358.9 518.9 385.8 420.7 386.6 379.0 261.0 277.3 217.46 199.14
Expenses
Cost of sales 374.8 534.9 412.3 110.5 148.0 139.0 145.8 101.0 120.7 97.7 92.9 54.04 63.78
Selling expenses 354.5 580.9 510.5 146.2 146.6 147.4 140.6 119.6 143.4 108.7 138.8 97.10 103.41
Administrative expenses 87.1 143.4 158.7 23.8 39.2 41.9 30.1 34.1 41.1 52.0 31.5 40.14 42.50
Total expenses 816.4 1,259.2 1,081.6 280.5 333.8 328.3 316.4 254.7 305.2 258.4 263.2 191.28 209.68
Profit before finance cost and
CIT
423.8 425.1 222.4 78.4 185.1 57.5 104.3 131.9 73.8 2.6 14.1 26.18 (10.54)
Finance cost (5.8) (12.0) (9.5) (2.8) (3.1) (3.4) (2.7) (3.2) (2.9) (2.2) (1.2) (0.51) (0.04)
Profit before CIT 418.0 413.1 212.9 75.6 181.8 54.1 101.6 128.7 70.9 0.4 12.9 25.67 (10.58)
Income tax (82.8) (62.1) (28.4) (13.2) (35.2) (9.6) (4.1) (16.6) (7.9) (0.2) (3.7) (6.33) 2.06
Profit for the year 335.2 351 184.5 62.4 146.6 44.4 97.5 112.1 63.0 0.2 9.2 19.34 (8.52)
Earning per share (Adj.) 2.34 1.50 0.58 0.28 0.65 0.19 0.38 0.35 0.20 (0.002) 0.03 0.06 (0.03)
36
Key Financial Ratio 2017 2018 Q1 2019 Q2 2019
Days Sales Outstanding (days) 64 93 97 103
Days Inventories on Hand (days) 187 299 657 589
Days Inventories on Hand (FG) (days)
48 101 242 225
Days Payable Outstanding (days) 76 76 80 84
Cash Cycle (days) 175 316 674 601
84
136 139 1399
7 16 20
60
6267 61
133
180170 158
5
6 66
31 Dec 17 31 Dec 18 31 Mar 19 30 Jun 19
FG Semi-FG Raw Material Packaging Supply and other
292
391
Unit: Million baht
Packaging -7%
A
B
C
DSO increased due to revenue from sale declined
dramatically at 25% from last year
DIO significant changed came from the increasing
of inventories
2018, FG decreased QoQ but Packaging increased
due to new product launch in Q4
Inventories
397-3%
Appendix: Cash Cycle
384
37
Online
Cross-border e-commerce
CHINA
Not required CFDA
Mainstream
online platform
Required CFDA
• Market size is much bigger than
Cross-border e-commerce.
• Allow wholesale transaction
• Lower transportation cost due
to the bundle shipments
• Cross-border is temporary
which is subject to change
according to Chinses policy.
• Not eligible for wholesale
transaction
Offline
Required CFDA
• Currently in talk with one of the
distributors
ALREADY
ENTERED
Main benefits of CFDA
• More easily accessible
in Mainstream online
platform and offline
channels which the market is much bigger
than Cross-border e-
commerce alone
• No risk from the policy
change of Cross-border e-commerce
NAMU LIFE
SNAILWHITE
SYN-AKE MIST
Q3 2018
NAMU LIFE
SNAILWHITE
WHIPP SOAP
Q1 2018
NAMU LIFE
SNAILWHITE
CLEANSING
Q1 2018
NAMU LIFE
SNAILWHITE
FACIAL CREAM
Q1 2018
Appendix: China outlook
Products with CFDA
38
THAILAND
SINGAPORE
INTERNATIONAL
Parent and subsidiaries
DO DAY DREAM
Intermediary in trading
with foreign customers
DO DAY DREAM TRADING
100%
Investment arm for
overseas businesses
DO DAY DREAM HOLDING
100%
Domestic Distributor
NAMU LIFE PLUS
100%
International Headquarter
DO INFINITE DREAM
100%
Dermatological Skincare
DREAM DERMATOLOGY
95%
Skincare for millennials
SKIN MAKE SMILES
70%
Future potential partners to do
overseas business
POTENTIAL PARTNERS
Philippines Distributors
DO DAY DREAM PHILLIPPINES
CORPORATION
51%
Appendix: Company structure and shareholding structure
39
Thailand Market Outlook
29.7
46.1
66.65.3
6.7
7.8
13.7
18.7
23.8
5.1
8.5
11.1
2.2
4.2
7
2012 2017 2022F
Thailand Skincare Market Size
Facial Care Body Care Facial Cleasers Body Cleasing Sunscreen
Unit: THB Billion
7%
Facial Care 7.64%
Sunscreen 10.59%
Body Care 3.03%
Facial Cleansers 4.95%
Body Cleansing 5.46%
2017 -2022F CAGR Consumer Trend
• Consumers are now seeking sachet as both
trial and regular products which allow them to
try a new variants easily
• Consumers are shifting away from chemical-
containing products as they perceive natural
ingredients to be beneficial for skin care
• Aging Society in Thailand supports the
growth for anti-aging segment
Source: Euromonitor
Anti-agingUV/Whitening
Basic Care
Oil Control
116
52
84
40
Philippines
Philippines Market Outlook
5.98
10.9
7.2
9.5
126.6
8.6
10.1
1.2
1.6
1.9
0.2
0.4
0.6
2012 2017 2022F
Philippines Skincare Market Size
Facial Care Body Care Facial Cleasers Body Cleasing Sunscreen
Unit: THB Billion
5%
Facial Care 6.38%
Sunscreen 8.72%
Body Care 4.82%
Facial Cleansers 3.21%
Body Cleansing 2.78%
2017 -2022F CAGRConsumer Trend
• Consumer’s desire to improve
their looks was reflected in their
ongoing acceptance of global
trends, together with increasing
purchasing power.
• Consumer are not only adding
more such products to their daily
skin care routines but are also
trying out different formats
• High income consumers look for
more effective and gentler
products
Source: Euromonitor
35
28
21
CONTACT US
DO DAY DREAM PLC.
Investor Relations Department
Tel: +662-917-1219
Fax: +662-917-3054
Email: [email protected]
Website: www.dodaydream.com
Contact person
Ms. Chanoknan Thiemrat (Investor Relations)
Email: [email protected]