Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — H1 2006 Earnings Presentation
20 slides from Domino's Pizza Enterprises's earnings presentation, Feb 20, 2006
Slide 1: First Half Results 2006
FIRST HALF RESULTS 2006 DOMINO'S PIZZA AUSTRALIA NEW ZEALAND LIMITED 20 FEBRUARY 2006 Page 1
Slide 2: Agenda and presenters
1. Executive Summary 2. Network Store & Sales Growth 3. Revenue & EBITDA Results « Australia & New Zealand » Corporate «Franchise « Corporate Development & Unallocated 4. Financial Details & IFRS Comments 5. Looking Forward 6. Conclusion DON MEI) Chief Executive Officer RICHARD CONEY Chief Financial
Slide 3: Strong growth in H1 2006, updating F/Y 2006 guidance
Strong growth in Hi 2006, updating F/¥ 2006 guidance » 80.6% NPAT increase on last year » Revenue & EBITDA growth +41.6% & +40.2% respectively « Sarne Store Sales (SSS) grew 5.01% » 26 weeks In Hil 2006 vs 27 weeks In Hi 2005 » 2005 actuals restated as A-IRES IPO Forecast « New guidance 2006 F/Y to
Slide 4: Store Roll-out Continues
Store Roll-out Continues Powerful Brand driven by Innovation Added 28 stores in H1 to finish with 415 stores Planning 21 additional stores in H2, 418 today (incl 1 store opening today) 49 for 2006 F/Y to finish with 436 stores (re-forecast) New products & effective marketing driving customer counts
Slide 5: Updating F/Y 2006 guidance
Updating F/¥ 2006 guidance » Ahead of IPO forecast in all areas « New Guidance for full year 2006, increase on IPO forecast « NPAT increases to in excess of $12.0M « 4,1¢ per share dividend announced, 20.6% above IPO forecast of 3.4¢ per share IPO New Forecast Guidance F/Y 06 F/Y 06 Store Count 418
Slide 6: New stores in H1
28 new stores In Hi Network sales $176.6m for H1, + 18.8% LY Significant sales & revenue growth in NZ Melbourne ~ finished H1 with 46 stores Current target is at least 620 stores Network store numbers as at 9 February 2006 H1O5 H2 05 HALF YEAR 176.6 Hi 06
Slide 7: Store Roll-out Continues
Store Roll-out Continues « Today 418 stores Vs IPO forecast of 418 by June 06 « 126 Corporate stores at half year - already exceeded IPO forecast number of Corporate stores for full year of 125 « Exploiting the opportunity to grow faster in new markets with more Corporate stores ~ Used extra capital
Slide 8: Revenue and EBITDA
Ce ee ee EBITDA 100 14 87.8 90 12.2 124 80 72.7 70 107 9.1 62.0 3.7 60 ed = = haa 50 eo 64 40 30 44 20 24 10 0 o4 Hi 05 H2 0S Hi G6 H1 05 H2 05 Hi 06 HALF YEAR HALF YEAR Page 8
Slide 9: Australian business strong & growing
« Australian business strong & growing ~ Revenue & EBITDA up 40.3% & 34.1% respectively on LY ~ EBITDA Margin 14.2% affected by high mix of immature stores in new markets and investment in additional support « Wew Zealand on track for full year IPO forecast ~ Critical mass generating +$0.4M EBITDA a
Slide 10: Corporate stores: significant part of growth
Significant part of growth « Revenue and EBITDA growth of +34.9% & 444.2% on LY respectively » Margin 10.0%, up on 05 H1 affected by imrnature stores in new markets « Half year already exceeded IPO forecast number of Corporate stores for full year F/YO04A HiOS5SA* H205A* F/YO05A* HLO6A Hi+/(-)05A $
Slide 11: Franchise: revenue growth leading indicator of EBITDA
Revenue growth leading indicator of EBITDA « Extra training investment in Melbourne « Expectations for margins in this area going forward are similar to 06 H1 « A-IFRS restatement has affected historical 05 H2, change due to $0.9m expense of NZ integration cost F/YO4A H105A* H205A* F/Y OSA * H1O06A
Slide 12: Corporate development activity consistent with 2005 H2
« Corporate development activity consistent with 2005 H2 ~ Opening, developrnent & sale of Corporate stores continues as network grows & we manage our corporate store portfolio « O5 HZ & 066 Hi show costs consistent with being @ public company F/YO04A H1O5A* H205A* F/Y O5A* H1 06A $ mil $ mil $ mil
Slide 13: 80.6% growth in NPAT
« 80.6% growth in NPAT « Interest cover improved to 11.5 times F/¥O04A H1O5A* H205A* F/YO5A* HLO6GA H1+/(-) O5A $ mil $ mil $ mil $ mil $ mil % Revenue 109.7 62.0 72:7 134.7 87.8 41.6% EBITDA 13.4 8.7 91** = 17.8** 12.2 40.2% Depreciation & Amortisation 5.0 2.6 2.6 5.2 3.0 15.4% EBIT 8.4 6.1 6.5** 1
Slide 14: Cash from operations strong and growing
Cash from operations strong and growing Working capital reduced by $2.3m Continuing to invest in corporate stores Extra $5m in debt finance Surplus debt facilities available H1 05a * H1 O6A $ mil $ mit EBITDA 8.7 12.2 Change in Working Capital 1a 2.3 Loans to related parties, franchisees Payment for
Slide 15: Net debt $15.3m
« Net debt $15.3m « Return on Invested Capital is 25.8% annualised for 06 HL F/YO4A F/YOSA* HA06A H1+/(-) 058 $mil § teil $ mil $ rit Current Assets Cash assets 47 27 Lt Receivables 0.9 Inventories 0.2 Other Current Assets Non-current assets Property Plant & Equipment 78.3 34 343 25 Tatangibles 10.6
Slide 16: NPAT bridge from A-GAAP 2005 to A-IFRS 2005
« NPAT bridge from A-GAAP 2005 to A-IFRS 2005 (smil) A-GAAP MPAT 05A (post share issue - ii _ _ __ 6.8 Expensing of restructuring costs Interest rate swap valuation Expensing share-based payments Goodwill no longer amortised
Slide 17: Looking Forward
LOOKING’ « New Product News a key driver of customer counts ~ SSS driven primarily by what Domino’s does, not the economy ~ Triple Cheese most recent success ~ Puffection pizza supported with innovative marketing campaign ~ Strong Product Pipeline built for 2006 Calendar Year
Slide 18: Looking Forward
LOOKIN ‘FOR’
Slide 19: Innovation also driving business
a iro NM i ¢ me co ie Innovation also driving business ~ Internet ordering in Melbourne, ~56 stores live nationally ~ Pulse roll out proceeding ~ Mobile Phones currently 16% of calls « Management aware and proactive ~ Rising wages ~ Pizza category is competitive onus ante 4
Slide 20: Strong growth in 2006 H1
« Strong growth in 2006 HL « Store rollout continues « Powerful brand driven by new products & innovation « New guidance for full year 2006
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