Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2005)
38 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 7, 2005
Slide 1: Chairman's Address - AGM 2005
Domino’s Pizza Australia New Zealand Ltd AGM 2005 Chairman’s Address 7 November 2005 (SLIDE ONE) Ladies and gentlemen, as Chairman of Domino’s Pizza Australia New Zealand Ltd | would like to personally welcome you to the Company’s inaugural Annual General Meeting. | note that the commencement time f
Slide 2: Board of Directors and 2004/05 year overview
(SLIDE TWO) « Non-Executive Director Barry Alty, who has more than 40 years’ experience in the retail industry - Non-executive Director Grant Bourke, who has been part of the Domino’s Pizza success story for more than 12 years + Non-Executive Director Paul Cave, a highly-respected figure in the Aust
Slide 3: Maiden result and dividends
(SLIDE FOUR) As a result, Domino’s Pizza delivered a strong maiden result to shareholders which exceeded forecasts across all areas. In 2004/05, Domino’s Pizza achieved a net profit after tax — pre share issue costs - of $7.6 million which is up 52 per cent on the previous year and up 15.2 per cent
Slide 4: Share price, market capitalisation and store roll-out
significantly advanced as the share price at the close of trade on Friday 4 November 2005 was $2.96 as compared to the IPO list price of $2.20. This represents an increase of 34.5%. The market capitalisation as at close of trade on Friday 5 November 2005 was $177,600,000 as compared to the market ca
Slide 5: Corporate governance
Protecting our shareholders’ interests always remains our top priority, and your Board is dedicated to operating in accordance with key corporate governance guidelines. The Board has developed and implemented policies and practices in compliance with the recommendations of the ASX Corporate Governan
Slide 6: Outlook for 2006
- Recognising the legitimate interests of stakeholders. More detailed information about Domino’s Pizza’s corporate governance practices is available in the 2005 Annual Report. (SLIDE NINE) 2006 Looking ahead, the cornerstone of the Company’s success is its ability to leverage a network of both corpo
Slide 7: AGM 2005 - Ross Adler, Chairman
AGM 2005 DOMINO’S PIZZA AUSTRALIA NEW ZEALAND LIMITED Ross Adler Chairman 7 November 2005
Slide 8: Board of Directors
» Ross Adler, Chairman » Barry Alty, Non-Executive Director = Paul Cave, Non-Executive Director » Grant Bourke, Non-Executive Director » Don Meij, Managing Director and CEO
Slide 9: 2004/05 achievements
In 2004/05, Domino’s Pizza Australia New Zealand Ltd: * added a record 93 new stores across Australia and New Zealand - 54 of those stores In the second half of the year. # became Australia’s largest pizza chain *» became the second largest pizza maker in New Zealand * Listed on the Australian Stock
Slide 10: Maiden result above forecast
In 2004/05, Domino’s Pizza Australia New Zealand Ltd: * delivered a strong maiden result to shareholders which exceeded forecasts across all areas. *# achieved a net profit after tax - pre share issue costs - of $7.6 million ~ up 52 per cent on the previous year ~ up 15.2 per cent on the forecast st
Slide 11: Dividend and market capitalisation
Dividend Despite the Cornpany only having been listed on the ASX for about six weeks during the 2005 financial year, Domino’s Pizza paid a fully-franked dividend of 0.7 cents per share to our shareholders last month. This was in line with the prospectus forecast. Market Capitalisation Share price at
Slide 12: Store Roll-Out
Store Roll-Out added 93 new stores in 2005 through organic growth and acquisition * now operates 407 stores, making it the second largest international Domino’s Pizza franchise in the world *# on track to have at least 429 stores operating in Australia and New Zealand by 30 June 2006
Slide 13: Corporate governance policies
The Board has developed and implemented policies and practices which ensure that the Company complies with the recommendations of the ASX Corporate Governance Council. The Board has adopted a Corporate Governance Charter, Code of Conduct and a comprehensive set of Board policies regarding: independe
Slide 14: Matters reserved for the Board
Matters specifically reserved for the Board are: Ensuring compliance with regulatory requirements Formulating strategic direction and approving the annual operating budget Approving and monitoring major capital expenditure programs Overseeing the Company, including its control and accountability sys
Slide 15: Outlook for 2006
Looking ahead, the cornerstone of the Company’s success Is Its ability to leverage a network of both corporate and franchised stores, backed by strong store-level economic fundamentals and the power and proprietary systems of a global brand. In 2006 the directors expect the Company’s strong and prof
Slide 16: Managing Director's Address - AGM 2005
Domino’s Pizza Australia New Zealand Ltd AGM 2005 Managing Director's Address 7 November 2005 (SLIDE ONE) Thank you Mr Chairman. Ladies and Gentlemen, it is my privilege to address you today at our first Annual General Meeting as an ASX listed company. For more than 20 years, Domino’s Pizza has been
Slide 17: Delivering results
Our ability to leverage our distribution network is evidenced by the fact that both EBITDA and Net Profit after Tax grew faster than revenue during 2005. This is the result of many initiatives. One such initiative is the recently signed five- year agreement with Visy Board, for the production of mor
Slide 18: New Zealand and Melbourne expansion
Domino's Pizza only entered the New Zealand market in 2003 and today has 50 stores. As a result of the Pizza Haven acquisition and the one-off integration costs, we posted an operating loss of $600,000 in 2005. | am pleased to say we expect earnings to turn around in 2006 and expect to achieve for t
Slide 19: Innovation: Luv Lab and brand advertising
Decadence, BBQ and Cheese Burst and The Edge. Some of these are now permanent fixtures on the menu. Standing here today, l’m excited about the products we have in our pipeline and which we intend to unveil over the coming months. It is worth noting that while we have a strong plan of new products sc
Slide 20: The year ahead: PULSE
(SLIDE TEN) THE YEAR AHEAD Looking ahead, there are a number of innovative initiatives the Company has embarked on to maintain our growth and returns to shareholders. These include: e Our state-of-the-art point-of-sale system PULSE e Our trial of internet ordering * Our new cheese supplier e Our new
Slide 21: Internet ordering and new cheese supplier
i) Last month, Domino’s Pizza began trialling our new internet ordering system in one store in Brisbane. Today there are now 4 stores continuing this trial, around the Brisbane CBD. Upon completion of the trial, the system will begin to be rolled out nationally. It is hoped that all Domino’s stores
Slide 22: New store concepts and conclusion
We're excited about the potential these new stores offer in taking the Company well beyond its 550 store target for Australia and New Zealand. The small store concept if it proves to be as successful as planned could take the total number of stores beyond 600. One of the other benefits of this proje
Slide 23: AGM 2005 - Don Meij, Managing Director and CEO
AGM 2005 DOMINO'S PIZZA AUSTRALIA NEW ZEALAND LIMITED Don Melj Managing Director and Chief Executive Officer 7 November 2005
Slide 24: 2004/05 Key Operational Achievements
= 2004/05 Key Operational Achievements - Delivering results ~ Delivering expansion ~ Delivering innovation « The Year Ahead
Slide 25: 52% NPAT increase last year
52% NPAT increase last year (pre share issue cost) EBITDA & profit grew faster than revenue issue costs +/(-) +/(-) 04A OSF %o Network Sales 21.00%] 2.00% Revenue 37.70%] 8.10% EBIT 50.00%] 17.50% EBITDA (pre share 43.30%] 6.10% issue costs NPAT (pre share issue 52.00%] 15.20% costs) NPAT (post shar
Slide 26: Store Roll-out Continues
Store Roll-out Continues » 93 new stores in 2005 ~ 54 stores 2™ half - 2005 unique ~ half organic & half acquisition » Today, 407 stores #» On track to have at least 429 stores by 30 June 2006 # leading pizza chain operator in New South Wales, Queensland, Western Australia, ACT, Northern Territory a
Slide 27: Newest markets - Victoria and NZ
Newest markets — Victoria and NZ » New Zealand ~ entered in mid-2003, today 50 stores — project for the first time an operating profit in 2005/06 ~ converted Pizza Haven stores in New Zealand have experienced significant sales growth » Melbourne ~ entered in mid-2004, today 43 stores
Slide 28: Innovation remains a key business driver
Innovation remains a key business driver ~ Our Luv Lab ~ Our brand and distinctive advertising - Our mobile phone ordering system
Slide 29: Our Luv Lab
Our Luv Lab # A purpose-built research kitchen through which new products are regularly tested and evaluated for potential release to the markets » Our new product pipeline is vital tothe | Company's success and the key to powering increases In same store sales # During the past 12 months, we launch
Slide 30: Our brand and distinctive advertising
Our brand and distinctive advertising Commitment to TV advertising using distinctive, creative and memorable commercials is integral to Domino’s Pizza's success Our slogan, ‘I’ve got the hots for what’s in the box with the dots’, is one of Australia’s most highly- recognised food brands OzTam data c
Slide 31: Our mobile phone ordering system
Our mobile phone ordering system » Domino's Pizza has completed the national rollout of its Innovative mobile phone ordering system « The system makes it easier for customers to buy from us and it will drive same store sales « Already we are seeing mobile phone orders constituting up to 10 per cent
Slide 32: New initiatives in the year ahead
New initiatives in the year ahead include: « Qur state-of-the-art point-of-sale system PULSE « Our trial of internet ordering « Our new cheese supplier » Qur new store concepts
Slide 33: Our state-of-the-art PULSE system
Our state-of-the-art PULSE system # PULSE makes it easier to give our customers the best service possible improving operational efficiencies by giving managers access to timely data *# PULSE will maintain and grow corporate store margins, prompting an acceleration in its rollout
Slide 34: Our trial of internet ordering
Our trial of internet ordering One of the many things PULSE enables us to do is implement an effective internet ordering system Last month, Domino’s Pizza began trialling our new internet ordering system in Brisbane. Upon completion of the trial, the system will be rolled out nationally. Moving forw
Slide 35: Our new cheese supplier
Our new cheese supplier As flagged in the Company’s 2005 Annual Report, Domino’s Pizza has been working with suppliers in relation to rising cheese prices Fonterra will be our new Australian and New Zealand business partner, exclusively suppling cheese to Domino's Pizza Fonterra was chosen because o
Slide 36: Our new store concepts
Our new store concepts » Dornino’s fs trialling a new small store format » If successful, these new types of stores will allow the Company to expand Into smaller regional towns, satellite cities and smaller suburban areas. « These stores are designed so that they have less capital and operating cost
Slide 37: On track to meet prospectus forecasts
Domino’s Pizza is on track to meet its forecasts outlined in its prospectus. In the year to date, stores have been performing well and delivering strong same store sales growth. I believe that we will at least meet our prospectus forecast same store sales for 2006. At the same time, we are confident
Slide 38: Domino's Pizza Australia New Zealand Ltd
Domino’s Pizza Australia New Zealand Ltd entered the 2006 fiscal year in a strong financial and operational position and is poised for further growth.
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