Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — FY2006 Earnings Presentation
22 slides from Domino's Pizza Enterprises's earnings presentation, Aug 21, 2006
Slide 1: Domino's Pizza Australia New Zealand Limited Full Year Results 2006
DOMINO'S PIZZA AUSTRALIA NEW ZEALAND LIMITED FULL YEAR RESULTS 2006 21 August 2006
Slide 2: Agenda
AGENDA 1. Executive Summary 2. Network Store & Sales Growth 3. Revenue & EBITDA Results « Australia & New Zealand « Corporate « Franchise « Corporate Developrnent & Unallocated Financial Details Looking Forward Europe N Hw fs Conclusion
Slide 3: Exceeded IPO forecast and 2006 guidance
Exceeded IPO forecast and 2006 guidance e EXECUTIVE SUMMARY 104.4% NPAT increase on last year Revenue and EBITDA growth +29.6% and +38.8% respectively | Same Store Sales (SSS) grew 4.3% 52 weeks in 2006 vs 53 weeks in 2005 NZ full maiden profit year ~- strong performer - exceeded forecasts Final div
Slide 4: Executive Summary: Store Roll-out Continues
EXECUTIVE SUMMARY Store Roll-out Continues * Added 51 stores to end year at 438 in Australla and New Zealand 20 stores more than original IPO forecast; 9 over forecast IPO additions for the year; two over updated 2006 guidance Acquired Belgium, France, Netherlands and Principality of Monaco - settle
Slide 5: Executive Summary: 2007 Guidance and Europe Update
EXECUTIVE SUMMARY Australia/NZ Europe F/Y¥ 2007 Guidance Forecast Forecast « Australia/New Zealand F/Y¥ 07 F/Y 07 ~ SSS 2.6% Store Count 478 175 ~ Build 40 new stores SSS 2.6% 12.0% - Corporate Development profits to be significantly less in 2007 « Europe - SSS 12% ~ Build 20 new stores Not achieved
Slide 6: Network Store & Sales Growth
NETWORK STORE & SALES GROWTH Network Sales Current target continues to be 620 stores in Australia/New Zealand NE 6 STORES OLD 103 STORES Nth NZ LO STORES Sth NZ 14 STORES 4 Network store nurnbers as at 2 July 2006 SM 400 380 300 250 200 180 100 50 2001 2002 2003 2004 YEAR 2005 359.4 2008 Page 6
Slide 7: Store Roll-out Continues
Store Roll-out Continues At year end 438 stores vs IPO forecast of 418 and 2006 quidance of 436 137 Corporate stores at year end - exceeded IPO forecast of 125 NETWORK STORE & SALES GROWTH F/Y F/Y F/Y O4A OSA O6A Network Sales ($ mil) 252.9 306.1 359.4 Number of stores Franchised stores 206 272 301
Slide 8: Revenue & EBITDA Results
REVENUE & EBITDA RESULTS 35 4 30 2001 «2002 «42003 «2004 «62005 ) «2006 2001 2002 2003 2004 2005 2006 a Corporate Stores @ Franchise Stores. # Corporate Development @ Other/Unallocated Page 8
Slide 9: Results - Australia & New Zealand
e RESULTS - AUSTRALIA & NEW ZEALAND Australian business consistently growing Melbourne Is challenging but travelling to plan NZ business seeing benefits of scale and brand growing ® e ® On national TV in 2006 NZ fastest growing market, highest growing SSS Outstanding results In Auckland Pizza Haven
Slide 10: Results - Corporate
RESULTS —- CORPORATE Revenue and EBITDA growth of +27.3% and +30.0% on previous year Overall margin has improved year on year 10.3% vs 10.1% Good results but worth noting higher number of Corp. stores in Melbourne than originally forecast diluting national result F/YO4A F/YOSA* | F/YO6A . +/(-) 05A
Slide 11: Results - Franchise
RESULTS — FRANCHISE e Intwo years almost doubled both Revenue and EBITDA ® Margin % is confusing due to store construction being In revenue (06 H2 store construction revenue 29% down on H1) » Extra training investment in Melbourne F/YO4A HLOSA* H2O05A* F/Y¥ O5A* H1 O6A H2 06A F/Y 06A +/{-) OBA OGF *
Slide 12: Results - Corporate Development & Unallocated
RESULTS - CORPORATE DEVELOPMENT & UNALLOCATED « Corporate development activity consistent ~ Opening, development and sale of Corporate stores continues as network grows and we manage our Corporate store portfolio « Head Office departments generating revenues improving other/unallocated segment resul
Slide 13: Profit & Loss
PROFIT & LOSS EBITDA up 15.4% over IPO forecast NPAT 27.5% over IPO forecast EPS 21.7 cents, in excess of 2006 guidance figure of > 20 cents Interest cover 12.5 times F/YO4A F/YOSA* F/YOGA +/(-)05A F/Y oer * $ mil $ mil $ mil % $ mil Revenue 109.7 133.4 172.9 29.6% 151.9 EBITDA 13.4 **17.8 24.7 38.8
Slide 14: Cash Flow
CASH FLOW Generated additional $7.4rmn F/Y O5A * F/Y 064 $ mil $ mit cash from operations over 2005 gepitpa 17.8 24.7 Positive movernent in working _ Change in Working Capital 0.6 24 capital of $2.1m Portfolio management of fi i” . Payment for PPE, intangibles & stores corporate/franchise store mix
Slide 15: Balance Sheet
BALANCE SHEET Europe cash $14.6m, raised via Westpac debt facility Debt facilities increased from $25.6m to $52.5rn to fund European acquisition and its future expansion Remaining debt facilities at year end $22.2 m Goodwill increased as a result of franchise acquisitions F/¥ O5A * +/(-) OBA mit § m
Slide 16: Looking Forward - Major Activities
LOOKING FORWARD - MAJOR ACTIVITIES Store expansion target +1,600 stores e Store roll out will continue ~ now in five countries « Will open our 600" network store in the next few weeks * Strong store growth in NZ based on strong store economics « Top 4 growth markets include NZ, Melbourne, Perth and
Slide 17: Innovation
Innovation « New Vision 2020 image ~ from end of calendar year all new and refurbished stores will be in new image e All stores to be in new image in 7 years Page 17
Slide 18: Innovation
Innovation Phase 2 Internet rolled out ~ 97% of stores to be completed by June 2007 97% of stores to be Pulse enabled by June 07 Expect continued growth in mobile phone ordering : your order EaMluber a Aoi teaneactley io wer giaba side Page 18
Slide 19: Looking Forward - Major Activities
LOOKING FORWARD — MAJOR ACTIVITIES Cy Innovative new products expected W7es! a . to continue : « Exciting new products « Intend to slightly extend menu Management aware and pro-active towards * Corporate store margins continue to be impacted by number of Corp stores in Melbourne e Melbourne similar
Slide 20: Europe
EUROPE Open 20 new stores in 2007 Will take time for changes to Impact whole systern - expect more of new stores in H2 Grow SSS 12% Europe wil show seasonality — due to July/August summer holidays — first half softer than second half
Slide 21: Europe
EUROPE Hi profits impacted by ‘one off’ restructuring costs @ Purchasing & recipe reviews have identified significant opportunities Fr & NL advertising agencies appointed & consumer research commissioned Increased variety & frequency of print advertising Capacity upgrade of French commissary underwa
Slide 22: Conclusion
CONCLUSION Achieved strong results well ahead of IPO prospectus and 2006 guidance Store roll out continues New Zealand strong performer Melbourne challenging but in natural maturation path for new market, as evident In NZ for example Feeling positive about Europe & our future growth Page 22
Domino's Pizza Enterprises — FY2006 Earnings Presentation on 6ix