Opp Day Q Information as of 3Q18 Latest update on 26 th Nov PDF Free Download

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

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

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

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

Company structure and shareholding structure Parent and subsidiaries DO DAY DREAM THAILAND NAMU LIFE PLUS 100% DO INFINITE DREAM 100% DREAM DERMATOLOGY 95% Domestic Distributor International Headquarter Dermatological company 100% 100% SINGAPORE DO DAY DREAM TRADING Intermediary in trading with foreign customers DO DAY DREAM HOLDING Investment arm for overseas businesses 51% INTERNATIONAL DDD KCA Corporation Philippines Distributors POTENTIAL PARTNERS Future potential partners to do 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 29.1% Growth 1,260 1,984 SNAILWHITE ICY MASK (Leave on facial mask) Market size THB 405 mm CAGR 109.6% 905 2015 2016 2017 Tissued/Pad Rinse Off Leave On Peel Off Source: Euro Monitor, The Nielsen Company 8

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

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

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

Quarterly revenue 2016-2018 Unit: Million baht 519 Lower number of tourist due to the limited of zero-dollar tour 421 Closing down of the biggest wholesale skin care markets in Thailand since May 2018 282 40 King Rama IX mourning period 254 30 359 93 218 386 146 56 386 379 75 101 261 42 Lowest point of total revenue 363 243 215 262 299 238 299 258 208 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% 398 375 349 319 31.9% 31.6% 32.5% 32% 36.4% 3-year target: 248 28 32% 28% 30.3% 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 Significant portion of COGS attributable to raw materials and packaging 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% 38% 35% 35.3% 37.8% 35.7% 43.2% 43.2% 725 3-year target: 35 38% Selling & 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 361 442 545 499 Selling and administrative expenses mainly comprise advertising and promotional expenses and employee expenses 9M 2018, y-o-y SG&A decreased by 8.44%.The decrease in SG&A 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. 155 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 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 72% 69.7% 68.4% 67.5% 3-year target: 68 72% 68% 63.6% 43.3% 862 859 32% 35.5% 3-year target: 32% 608 664 26.6% 26.8% 26.9% 22.6% 24% 22% 20.3% 27.0% 20.8% 20.1% 17.1% 3-year target: 22 24% 441 452 340 335 351 190 8.4% 254 233 6.3% 194 253 175 37 28 2014 2015 2016 9M17 9M18 Gross Profit % Gross Margin 2014 2015 2016 2017 9M17 9M18 EBITDA % EBITDA Margin 2014 2015 2016 2017 9M17 9M18 Net Profit % NP Margin 15

Financial position Balance Sheet Key Financial Ratio 2015 2016 2017 9M18 Unit: Million baht Days Sales Outstanding (days) 46 53 64 100 B 5,460 4,786 5,287 C 4,973 D Days Inventories on Hand (FG) (days) 29 40 48 120 Days Payable Outstanding (days) 56 80 76 84 Return on Assets (%) 49.8% 51.4% 11.3% 4.42% Return on Equity (%) 133.5% 108.6% 13.6% 4.70% Debt to Equity Ratio (times) 1.2x 1.1x 0.1x 0.06X Interest Bearing Debt to Equity Ratio (times) 0.5x 0.5x 0.1x 0.02x A Total liabilities increased mainly due to loan to finance new factory 529 286 243 776 A 401 375 674 314 2015 2016 2017 9M18 B C 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 Total Assets Total Liabilities Shareholders'Equity D FG decreased QoQ but PM increased due to new 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 Q3 17: 5% Q3 18: 4% No. 7 in Supermarket/ Hypermarket Market Size of Facial Moisturizer 2017: THB 42 billion Growth: 8% Market Share Q3 17: 4% Q3 18: 7% Convenience Stores No. 6 in Convenience Stores Market Share Q3 17: 4% Q3 18 :4% No. 7 in Thailand New Snailwhite Sachets play vital role in capturing Market Share Source: EuroMonitor, The Nielsen Company 18

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

Does it matter to be top 3 in Thai market? Unit: THB BN Thailand s skin care market size CAGR 8.0% 120.69 103.55 88.90 76.36 66.54 2015 2017 2019 (F) 2021 (F) 2023 (F) Source: Euromonitor report 22

5.2% 4.3% 2.1% 3.2% 1.4% 1.1% 1.5% 1.0% 4.2% 4.1% 3.8% 3.7% 11.6% 10.0% 9.8% 15.2% 14.1% 12.9% 27.7% 25.9% Top Manufacturers in Thailand (Facial Moisturizer) Market Share (%) The highest market share per SKUs among the top manufacturers. Q3'17 Q3'18 L'Oreal (Thailand) Procter & Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-E Dodaydream Day Dream Aisance Mentholatum. Johnson & Johnson Consumer Karmarts 89 SKUs 44 SKUs 66 SKUs 28 SKUs 20 SKUs 8 SKUs 29 SKUs 22 SKUs 10 SKUs 3 SKUs NO.6 Source: The Nielsen Company 23

2023 Mission How to be top 3 in Thai facial skin care? 24

Well-positioned as a premium mass Premium Price: > USD 80 Premium Mass Price: USD 30-50 NAMU LIFE Snailwhite is uniquely well-positioned as a premium mass brand which allows it to capture both mass and premium market demand. Mass Price: < USD10 25

We need to capture at least 12% market share to become top 3 12% 8% 4% 4% Do Day Dream L'Oreal (Thailand) Procter & Gamble (Thailand) Beiersdorf Ag Germany Unilever Thai Trading Smooth-E Do Day Dream 2023 2018 Source: The Nielsen Company 26

Growing the market share Modern Trade THB 34,468 mm Traditional Trade THB 30,560 mm Inbound Tourist THB 9,728 mm Export 27

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm PENETRATION Domestic penetration over 85% Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm PRODUCT COVERAGE Increase variety of product Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm Export NOW 20 Products TARGET 40 Products In 2023 28

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm PENETRATION Low domestic penetration rate Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm Market Share Leader in TT channel* 28% 1% Target - 2023 5% Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm Distribution 72% At the end of Sep 2018* 3% Rooms for improvement 1 30% Expand penetration in traditional trade channel Export 2 3 Strengthen relationship with upcountry distribution centers Direct communication to target customers Source: The Nielsen Company *as of Q3 2018 29

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm 1 2 Expand penetration in traditional trade channel Focus on the Northeastern part of Thailand to capture huge potential market Strengthen relationship with upcountry distribution centers Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm Export Region Total Population Million people Age 18-35 Central 22.7 5.7 Northern 12.1 2.9 Southern 9.4 2.5 Northeastern 22.0 5.7 Priority 30

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm 3 Direct communication to target customers SNAILWHITE roadshow in Northeastern part of Thailand Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm Export 31

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm CHANNEL COVERAGE Increase point of sale in tourist attractions to capture more potential customers Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm The World s Top Tourism Destinations Ranked by Money Spent International Tourism Receipts in 2017 (US$ billion) Expected inbound tourists in 2018 37.55 Million tourists Travelers spend more money In Thailand than anywhere else In Asia Export Thailand to grant visa-on-arrival Fee waiver for some visitors in bid To lift tourism slump Source: Bloomberg 32

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm No. of Customers in King Power Duty Free (Total Year): 31.20 Million customers Must-Have Items for Shopping in King Power Duty Free 2 19 Export SNAILWHITE Facial Cream SNAILWHITE Mask Shot Source: Brand Buffet, Marketing Oops, KhaoSod 33

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm Export CHINA Distribution model Appoint new distributor to expand market reach Huge skin care market size with intense competition Expected to grow at market rate HONGKONG NEW Distribution model Trade center for business and tourist destination for both foreigner and Chinese Border to china mainland PHILIPPINES Partnership model Sizable skin care market with high forecasted growth rate Strong relationship with partner Leverage marketing know-how to replicate success 35

Growing the market share Modern Trade POS: 13,000 / 15,000 THB 34,468 mm PHILIPPINES Available in Watsons stores since October Launch campaign Unlock Beauty with 70 Beauty influencers Traditional Trade POS: 5,000 / 400,000 THB 30,560 mm Inbound Tourist King Power DFS: 8 / 9 THB 9,728 mm Export 36

1,400 1,200 1,000 800 600 400 200 0 2018 Wrap up: Temporary Setback Unit: Million THB 1,256 Revenue from sales -21.7% Causes of Temporary Setback RMB to THB Depreciating RMB 98% 458 983-52.4% 75% 218 Tourists ferry incident in Phuket dampening Thailand tourism Closing down of the biggest wholesale skin care markets in Thailand -4.1% 798 765 9M17 9M18 Lacking penetration in traditional trade channel (1% penetration) Insufficient and inconsistent marketing activities in China from our distributor Domestic Overseas 39

Mission: Top 3 market leader in Thai facial skin care in 2023 (current: No. 6 as of Q3 2018) To be top 3: Gain at least 12% market share (current market share 4.1% as of Q3 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) Export: New overseas subsidiaries and distributors 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. 40

TABLE OF CONTENTS Background and business Key financial performance Where we are so far Company outlook Appendix 41

Appendix: Key financial strategies Dividend policy The Company has dividend payout policy of at least 50% of the net profit under standalone financial statements Our subsidiary has dividend payout policy of at least 50% of the net profit under standalone financial statements Risk management In 2016 and 9M2017, 46.2% and 38.4% of the Company s total raw material purchased are made in USD The Company hedge foreign exchange rate risk by entered into forward contract for hedging approximately 70% of USD purchased value Our insurance made cover damage incur approximately THB 1,049 mn which cover our total fixed asset value Capital structure Do Day Dream will maintain an appropriate debt to equity ratio to optimize capital structure Current D/E and IBD/E is at 0.7x and 0.4x, respectively. However, the IPO proceed would increase our equity base and thus expand debt room for future growth opportunities 42

Profit and loss statement Statements of comprehensive income 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 438.0 955.1 1,236.8 1,674.4 355.2 517.2 384.0 418.1 374.3 359.2 249.8 Domestic sales 354.3 775.1 1,090.7 1,161.7 262.3 298.6 237.6 363.18 299.1 258.5 207.8 Export sales 83.7 180.0 146.2 512.8 92.9 218.6 146.4 54.9 75.2 100.7 41.9 Service income - 0.0 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other income 0.1 1.6 3.2 9.8 3.7 1.7 1.8 2.6 12.3 19.8 11.2 Total revenues 438.1 956.7 1,240.2 1,684.3 358.9 518.9 385.8 420.7 386.6 379.0 261.0 Expenses Cost of sales 248.2 347.5 374.8 534.9 110.5 148.0 139.0 137.3 101.0 120.7 97.7 Selling expenses 147.4 330.9 354.5 580.9 146.2 146.6 147.4 140.6 119.6 143.4 108.7 Administrative expenses 7.4 30.3 87.1 143.4 23.8 39.2 41.9 38.5 34.1 41.1 52.0 Total expenses 403.0 708.7 816.4 1,259.2 280.5 333.8 328.3 316.4 254.7 305.2 258.4 Profit before finance cost and CIT 35.1 248.0 423.8 425.1 78.4 185.1 57.5 104.3 131.9 73.8 2.6 Finance cost (0.4) (3.9) (5.8) (12.0) (2.8) (3.1) (3.4) (2.7) (3.2) (2.9) (2.2) Profit before CIT 34.7 244.1 418.0 413.1 75.6 181.8 54.1 101.6 128.7 70.9 0.4 Income tax (7.2) (50.2) (82.8) (62.1) (13.2) (35.2) (9.6) (4.1) (16.6) (7.9) (0.2) Profit for the year 27.5 193.9 335.2 351 62.4 146.6 44.4 97.5 112.1 63.0 0.2 Earning per share (Adj.) 5.0 17.6 2.34 1.50 0.28 0.65 0.19 0.38 0.35 0.20 (0.002) 43

Appendix: Balance sheet and cash flow statement Statements of financial position As at December 31, (THB mn) 2014 2015 2016 2017 Cash and cash equivalents 41.7 73.9 41.5 4,388.5 Total current assets 181.7 378.7 512.9 734.0 Total non-current assets 69.0 149.8 262.6 338.0 Total assets 250.7 528.5 775.5 5,460.5 Total current liabilities 140.4 235.2 353.2 617.2 Interest bearing debt 88.9 126.8 195.7 335.3 Total liabilities 202.6 286.0 400.5 674.0 Total shareholders equity 48.1 242.5 375.0 4,786.5 Total liabilities and shareholders equity 250.7 528.5 775.5 5,460.5 Statements of cash flows Year ended December 31, (THB mn) 2015 2016 2017 Net cash flows from operating activities 83.3 218.8 245.3 Net cash flows from (used in) investing activities (86.5) (114.0) (96.3) Net cash flows used in financing activities 35.4 (137.2) 4,198.0 Cash and cash equivalents at end of year/period 73.9 41.5 4,347.0 44

Appendix: China outlook Products with CFDA NAMU LIFE SNAILWHITE FACIAL CREAM Q1 2018 NAMU LIFE SNAILWHITE CLEANSING Q1 2018 NAMU LIFE SNAILWHITE WHIPP SOAP Q1 2018 NAMU LIFE SNAILWHITE SYN-AKE MIST Q3 2018 CHINA ALREADY ENTERED Cross-border e-commerce Not required CFDA Cross-border is temporary which is subject to change according to Chinses policy. Not eligible for wholesale transaction Online 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 Offline Required CFDA Currently in talk with one of the distributors 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 45

Appendix: Snailwhite performs well in CVS but still has great opportunity in Open Trade Rank Brand Product Size Market Share Q3 18 Convenience Distribution Q3 18 Convenience Market Share Q3 18 Open Trade Distribution Q3 18 Open Trade 1 Garnier Sakura Wh.Pinkish Rad.Moi.Cr.Spf21 Pa+++ 7 Ml 5.4 97 8.3 51 2 Garnier Ageless White Day Spf30 Pa+++ Serum Cr. 7 Ml 5.3 95 8.4 44 3 Garnier Lig.Com.Wh.Speed Mul.Act.Wh.Spf20 SR.Cr. 7 Ml 4.5 96 5.9 42 4 Rojukiss Other 6 Ml 3.7 69 NA NA 5 Pond's Age Mira.Wrinkle Cor. Day Cr.Ratinol-C 7 Gm 3.3 93 4.6 34 6 Rojukiss Other 6 Ml 3.1 70 NA NA 7 Snail White Gold SPF30 PA+++ Cr. 7 Ml 2.9 75 0.1 2 8 Smooth-E Natural Source Cream 10 Gm 2.8 76 0.0 0 9 Pond's White Beauty Instabright Tone Up Milk Cr 7 Gm 2.6 93 2.2 14 10 Dermo Expertise White Perfect Spf17 Pa++ Serum Cream 7 Ml 2.5 89 0.8 8 Source: The Nielsen Company 46

2017 : Beauty Industry Peer Comparison Gross Profit SG&A Operating Profit Net Profit 68% 68% 72% 73% 61% 55% 54% 47% 59% 43% 45% 54% 43% 27% 34% 32% 25% 41% 21% 21% 33% 19% 16% 18% 18% 12% 9% 3% 14% 15% 11% 8% 47

CONTACT US DO DAY DREAM PLC. Investor Relations Department Tel: +662-917-3055 Ext.808 Fax: +662-917-3054 Email: ir@dodaydream.com Website: www.dodaydream.com Contact person Ms. Chanoknan Thiemrat (Investor Relations) Email: Chanoknan.t@dodaydream.com Company satisfaction survey

2023 Oxe Cure Outlook Subsidiary company for dermatological skin Dream Dermatology 2023 To be market leader in Thai acne skin care 1 Top of mind brand for acne and sensitive skin care in Thailand Product Overseas 500 2023 Target: 500 MB in sales 300 1 THB 240 mm from modern trade and traditional trade Improve penetration to 50% 2 Establish new product series for sensitive and acne skin care to acquire mass market in Thailand Channel 2 THB 150 mm from products Increased variety of products to 24 products 3 THB 70 mm from Overseas Growth in new countries 3 Total of 18 new products to achieve target sale and profit 2018 1 2 3 2023 49

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