Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Merger or Acquisition (August 2022)
22 slides from Domino's Pizza Enterprises's merger presentation, Aug 24, 2022
Slide 1: ASX cover letter: Market presentation about Acquisition of Three Asian Markets
Domino’s Pizza Enterprises Limited 1/485 Kingsford Smith Drive Hamilton, QLD, Australia 4007 ACN: 010 489 326 www.dominos.com.au 24 August 2022 The Manager Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir Market presentation about Acquis
Slide 2: Acquisition of Domino's Pizza Malaysia, Singapore & Cambodia
ACQUISITION OF DOMINO’S PIZZA MALAYSIA, SINGAPORE & CAMBODIA 24 AUGUST 2022 AUSTRALIA NEW ZEALAND BELGIUM FRANCE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 3: Transaction Highlights
TRANSACTION HIGHLIGHTS
Slide 4: Key Highlights
KEY HIGHLIGHTS Acquisition of Domino’s Pizza businesses in Malaysia, Singapore and Cambodia, the 2nd largest pizza chain in each ✓ market, with 287 corporate-owned stores, for an initial price of 660 million Malaysian ringgit (equivalent to A$214m) ✓ Long term market growth with store count potentia
Slide 5: Financial Summary
FINANCIAL SUMMARY ▪ DPE has entered into binding agreements with Mikenwill (M) Sdn Bhd, Impress Foods Pte Ltd and Dato’ Ting Yew Tong to acquire 100% of the Domino’s Pizza business in Malaysia, Singapore and Cambodia for an initial purchase price of 660m Malaysian ringgit (equivalent to A$214m)(1) o
Slide 6: Acquired Group Overview
ACQUIRED GROUP OVERVIEW ▪ Established in Malaysia in 1997 and has grown to become the second largest pizza chain in Malaysia, Singapore and Cambodia by number of stores ▪ The three territories currently comprise 287 corporate-owned stores, with 240 stores in Malaysia, 38 stores in Singapore and 9 st
Slide 7: Domino's Pizza Malaysia, Singapore & Cambodia
DOMINO’S PIZZA MALAYSIA, SINGAPORE & CAMBODIA
Slide 8: Domino's Pizza Malaysia
DOMINO’S PIZZA MALAYSIA ▪ Pizza market in Malaysia consists of approximately 1,100 stores(1) − c. 565 limited-service restaurants 240 STORES − c. 470 chained stores NORTHERN − c. 95 independent operators 39 STORES SABAH EAST & LABUAN ▪ Stores are predominantly located in West Malaysia. Stores are CO
Slide 9: Domino's Pizza Malaysia
Domino's DOMINO'S PIZZA MALAYSIA
Slide 10: Domino's Pizza Malaysia
DOMINO’S PIZZA MALAYSIA
Slide 11: Domino's Pizza Singapore
DOMINO’S PIZZA SINgAPOre ▪ Pizza market in Singapore consists of approximately 255 stores(1) − c. 130 limited-service restaurants 38 STORES − c. 105 chained stores − c. 20 independent operators ▪ Domino’s stores are located across the island. Average household counts per store are over 50k ▪ Both gr
Slide 12: Domino's Pizza Singapore
Domino's DOMINO'S PIZZA SINGAPORE
Slide 13: Domino's Pizza Cambodia
DOMINO’S PIZZA CAMBODIA ▪ Cambodia is an early-stage market, with the first store opening in 2014 9 STORES ▪ All but one store is located in the capital of Phnom Penh. One store is located in Siem Reap, the second largest city in Cambodia and home to the Angkor temples ▪ Support services are to be m
Slide 14: Domino's Pizza Cambodia
Domino's DOMINO'S PIZZA CAMBODIA
Slide 15: Impact on DPE
ae Ris IMPACT ON DPE Ai “eae Bt Gee
Slide 16: Management
MANAGEMENT ▪ The acquired businesses will report to Mr Josh Kilimnik, DPE CEO APAC ▪ Existing leadership teams will be retained, many of which have long tenure with Domino’s Pizza ▪ Mr Kilimnik will be supported by ongoing arrangements with Mr Ba U Shan-Ting, a 22-year pizza veteran and existing Gro
Slide 17: Financial Impact on DPE
FINANCIAL IMPACT ON DPE ▪ Initial purchase price of 660m Malaysian ringgit (equivalent to A$214m)(1) on a cash and debt free basis ▪ Transaction is 5% EPS accretive on a pro forma June 2022 basis before synergies and one-off integration, reorganisation and transaction costs ▪ Transaction costs of ap
Slide 18: Strategic Plan for Growth
STRATEGIC PLAN FOR GROWTH ▪ Business plan leverages DPE’s experiences entering new markets globally, including learnings from Japan and recent acquisition of the Taiwan territory TEST AND LEARN INTEGRATE AND INVEST GROWTH (0-1 years) (0-18 months) (1-5+ years) ▪ Leverage learnings and regional ▪ Lev
Slide 19: Synergies Available to DPE
SYNERGIES AVAILABLE TO DPE ✓ Introduction of DPE digital platforms Deploying DPE NextGen platforms (One Digital) to deliver an enhanced customer experience, increase order conversions and improve customer retention ✓ Leverage sophisticated marketing Increase and reorientation of marketing spend, inc
Slide 20: Earn Out Arrangements
EARN OUT ARRANGEMENTS ▪ Earn out of up to 440m Malaysian ringgit may be paid after years two or three − Pre-determined pricing formula broadly based on capitalising earnings at 11x adjusted EBITDA multiple (pre-IFRS16) − Earnings adjustments inter alia eliminate unusual and non-recurring items, asse
Slide 21: DPI Approval and Extension of MFAs
DPI APPROVAL AND EXTENSION OF MFAs ▪ Domino’s Pizza, Inc. (DPI) is fully supportive of the transaction ▪ Domino’s Pizza International Inc., a wholly-owned subsidiary of DPI, has provided commitments to enter into a new master franchise agreements for each of Malaysia, Singapore and Cambodia ▪ Each m
Slide 22: Upgraded Store Outlook
UPGRADED STORE outlook Europe Milestone APAC Milestone ▪ APAC store milestone upgraded by +600 3,050 stores by 2033 4,200 stores by 2033 stores, from 3,600 to 4,200 by 2033 ▪ Updated DPE Group outlook now reaches 7,250 stores by 2033
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